$1 Billion in New Tax Breaks Approved in Colorado, Impacting TABOR Refunds – What To Know!

Colorado lawmakers approved $1 billion in new tax breaks targeting specific groups.

Colorado Lawmakers Approve $1 Billion in New Tax Breaks Amid TABOR Refund Concerns

Colorado lawmakers have approved $1 billion in new tax breaks diverting funds from TABOR refunds that typically benefit all taxpayers. These 26 new tax credits cater to specific groups like parents, older homeowners, freight rail operators, and moviemakers.

The new tax breaks are expected to reduce TABOR refunds by approximately $3 billion over three years, possibly leading to the first absence of refunds in five years by fiscal year 2024-25 due to insufficient surplus revenue.

Chief legislative economist Greg Sobetski warned of significant revenue reductions and increased budgetary risks. Lawmakers are concerned about a $164 million budget shortfall and the state’s reserve falling below the mandated 15%, according the report of Axios Denver.

READ ALSO: Philly Joy Bank: $1,000 Monthly Aid For Pregnant Women In High-Risk NeighborhoodsPhilly Joy Bank: $1,000 Monthly Aid For Pregnant Women In High-Risk Neighborhoods

(photo: FOX21 News Colorado)

Senator Kirkmeyer Criticizes Democratic Fiscal Policies Amid Tax Credit Expansion

Senator Barbara Kirkmeyer criticized what she called irresponsible Democratic overspending. Democrats prioritize retaining state revenue over TABOR refunds, pushing tax credits instead to advance their policy goals.

Democrats championed significant tax credits, including one starting this year potentially costing $740 million annually, benefiting parents with children under 16. Another expansion of the earned income tax credit by fiscal year 2025-26 would cost $200 million annually.

These measures reflect a tension between adhering to TABOR fiscal rules and addressing social and economic issues, setting the stage for ongoing debate and voter scrutiny.

READ ALSO: $1 Billion Shift: Colorado Lawmakers Prioritize Tax Credits Over TABOR Refunds, Sparking Fiscal Concerns!