Blog: a web log
02/17/2004: "On the Frontier: Colorado’s Taxpayers Bill of Rights"
Colorado is often cited as the state with the most stringent tax and expenditure limit (TEL) in the country. State elected officials nationwide can learn from how Colorado got its TEL and how it is attempting to cope with recent challenges.
Colorado’s Tax Revolt,/b>
One of the most important changes in Colorado tax policy was the adoption in 1987 of a flat income tax set at 5 percent, replacing the graduated income tax. The 5 percent flat rate was not revenue-neutral, capturing much of the windfall from the federal income tax reform of 1986. The income tax burden on Colorado citizens increased significantly, and the state became increasingly reliant on the income tax as a source of revenue.
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