COLORADO SETS OFF IN THE WRONG DIRECTION
On Nov. 3, 2026, voters in Colorado will decide a ballot initiative that would take a step in the wrong direction. The initiative calls for a graduated income tax to replace the current flat income tax of 4.4%, which now applies to all taxpayers regardless of income. You can read the Ballotpedia.org article by Brandon McCauley here:
The measure, called Initiative 195, would amend both the Colorado Constitution and state statutes to replace the flat income tax with a six-tier structure beginning at 3.7% and topping out at 8.4% for incomes over $1 million. It would remove the uniform tax rate requirement from Colorado’s Taxpayer's Bill of Rights contained in the state’s constitution.
Initiative 195 needs at least a 55% supermajority of voters for approval.
Colorado tried to abolish its flat income tax before. In 2018, voters turned down a measure that would have established an income tax bracket system and raised taxes for individuals earning more than $150,000 per year, raised the corporate income tax rate, and created a Quality Public Education Fund. 53.57% of Colorado’s voters said “no.” Will it pass this time? That is anyone’s guess.
There is opposition. Advance Colorado, an organization that describes its mission as "[pushing] back on the progressive policies that have put our state on the wrong track," submitted signatures for a measure that would establish an income tax rate cap. Their initiative is known as Initiative 232.
Here is a Colorado quirk. The two initiatives obviously conflict. If both measures pass, the conflicting provisions of whichever measure received more votes will prevail.
We FAIRtax supporters know that Colorado needs to strike out in the other direction. It needs to join at least a dozen other states in abolishing the income tax altogether and replacing it with a consumption tax. The benefit to Colorado’s economy would be enormous. A state-level Prebate would pull the rug out from under those who argue that a consumption tax is unfair to the poor. A consumption tax with a prebate, instead of a graduated income tax, would give Colorado a true state-level FAIRtax.
Meanwhile, if you live in Colorado, you know how to vote on Initiatives 195 and 232. If you hear what is happening on the ground, please let me know.
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TAKE BACK CONTROL!