Colorado Attorney General Phil Weiser, the Democratic candidate for governor, announced Friday evening that he opposes Amendment 87, the graduate tax initiative on the November ballot.
Amendment 87, if passed, would raise taxes on people and businesses making more than about $500,000, raising about $2 billion a year for health care, K-12 education and child care. It would also reduce taxes for those earning less than $500,000.
In a statement to The Sun, Weiser said he supports a progressive income tax in Colorado, but believes Amendment 87 is not the right approach for two reasons.
First, Weiser said there’s a risk it could backfire if voters pass both Amendment 87 and Proposition 136, a countermeasure brought by conservative activists that would cap Colorado’s income tax at its current flat rate of 4.4%.
If both pass but Proposition 136 gets more votes, a court could theoretically block the tax increases contained in Amendment 87, while still allowing the measure’s tax cuts to take effect. Weiser said it could reduce state revenue by $600 million.
Supporters of Amendment 87, however, say the new tax brackets are designed to take effect in their entirety, if at all. If Proposition 136 goes into effect and blocks higher tax rates, they say Amendment 87’s tax cuts would disappear as well, keeping the 4.4% flat tax in place for everyone.
Ultimately, a court or the state legislature may have to step in and make a decision.
Additionally, Weiser said Amendment 87 does not provide enough information on how the revenue it raises should be spent. He said the revenue increases should give “a clear picture of how the money will be spent”.
“If this measure passes, I will implement it effectively; if not, I will work as governor to rally support for a progressive income tax measure that can build a better future for our state,” Weiser said.
Weiser is one of the few prominent Democrats to oppose the progressive income tax proposal. Current Gov. Jared Polis, U.S. Sen. John Hickenlooper and former U.S. Ambassador to Mexico Ken Salazar are among the others.
Democratic U.S. Sen. Michael Bennet said Friday he supports Amendment 87. Bennet lost the Democratic gubernatorial primary election to Weiser.
Amendment 87 also has support from Democratic U.S. Reps. Brittany Pettersen, Joe Neguse and Jason Crow; Democratic congressional candidates Manny Rutinel and Melat Kiros; outgoing U.S. Rep. Diana DeGette; and Colorado Treasurer Dave Young. All four Democrats on the state Legislature’s joint budget committee also support it: Senators Jeff Bridges and Judy Amabile and Representatives Kyle Brown and Emily Sirota.
If approved by voters, Amendment 87 would represent one of the most significant changes to the Taxpayer Bill of Rights since voters added it to the state constitution in 1992. It would replace the state’s flat income tax system with six brackets, reducing the taxes individuals and businesses owe on the first $100,000 of annual income and then increasing the state income tax rate beyond $500,000.
During his campaign for governor, Weiser repeatedly said he was unable to weigh in on Amendment 87 because of his involvement in ongoing litigation over whether the issue should have been placed on the ballot. Conservatives claimed that paid signature gatherers for the measure had not been properly registered with the state.
That litigation ended Friday, with the Colorado Supreme Court ruling that the issue was admissible.
Protect Colorado’s Future, the campaign supporting Amendment 87, celebrated the court’s decision.
“Twice, Colorado courts have held that the more than 130,000 voters who signed this petition deserve to have their signatures count, and that the people of Colorado deserve to decide this issue for themselves,” Chris deGruy Kennedy, co-chair of Protect Colorado’s Future and president of the Bell Policy Center, said in a statement.
Amendment 87 has support from a coalition of liberal advocacy groups, including progressive think tanks like the Bell Policy Center, the Colorado Fiscal Institute and the Colorado Center on Law and Policy. It is also supported by public school advocates, environmentalists, health policy groups and the state workers union.
Conservatives and business groups oppose Amendment 87, arguing that the tax increases linked to the measure will hurt the state’s economy and kill jobs.
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