Cutting Colorado’s Income Tax to Reduce the Cost of Living – South Platte Sentinel
By Rep. Kim Ransom and Senator Jerry Sonnenberg
Throughout our tenure in the Legislature, our constituents have told us of many different concerns – most recently, they told us how the skyrocketing cost of living has made life in Colorado difficult.
Democratic policies have crippled the financial system – the policies of Washington, DC, and Denver. In January 2022, the national inflation rate hit 7.5%, a 40-year high. It’s pretty tough for the Coloradans. Add in state policies and the fee hikes passed by Democrats in the last legislative session and we are heading for financial disaster.
A recent poll found that 73% of Colorado residents rate the cost of living as a “very” or “extremely” serious issue. This is even more concerning for minorities – 81% of black respondents said they were concerned about the cost of living and 83% of Hispanic respondents also expressed concern. That same poll found that more than 20% of Colorado residents fear losing their homes. That’s 1 in 5 Coloradoans who worry about facing homelessness and financial devastation.
Inflation affects all Coloradans – and especially those who can least afford it. The rising cost of living always has a negative impact on the lower class and the middle class first, as it means that low-income people spend larger and larger percentages of their wages on basic necessities like housing, food and gasoline. A rising rate of inflation is pushing the American dream further and further out of reach for ordinary Americans. This is unacceptable.
One of the ways to reduce the cost of living for Colorado residents is to reduce state income taxes. That’s why we introduced Bill 22-1021, the “State Income Tax Rate Reduction Act,” which would reduce personal and corporate income tax rates. from 4.55% to 4.4% from 2022.
If passed, this bill would benefit the people of Colorado. For an average family whose median household income in Colorado is around $77,000, that would put $115 back in their wallet. By the 2023-2024 fiscal year, this bill would put $420.4 million back in the pockets of Colorado residents.
It is money that will help taxpayers; it’s a bit more in an emergency savings account; it’s a bit more towards a university fund; it’s a little more towards the holidays. More importantly, it’s money that belongs to the people of Colorado and they deserve to choose how to spend it.
This legislative session, Colorado Republicans unveiled their “commitment to Colorado.” This list of legislative priorities focuses on three main points: making Colorado affordable, prioritizing public safety, and expanding educational choice. These are the things that people in Colorado care about; it’s the problems that keep them awake at night. This legislation is one more step toward our goal of making Colorado more affordable.
By passing this bill and other bills introduced by our fellow Republicans in the General Assembly, we can reduce the exorbitant cost of living in Colorado and ensure that the state remains a place not only for to live but also to prosper. Coloradans deserve to live affordably and with peace of mind; they should be able to sleep at night without worrying about how they will make ends meet each month. We look forward to working with our colleagues in the State Legislature to pass bills that will achieve this.
Rep. Kim Ransom (R-Littleton), represents the 44th District in the Colorado House of Representatives.
Senator Jerry Sonnenberg, a Republican from Sterling, represents District 1 in the Colorado State Senate.