Right now, unlimited deductions for taxpayers with income over $400,000 - less than 1/2 of 1% of taxpayers - cost Colorado over $100 million per year.
2017 federal tax law changes intended to benefit small businesses also created a windfall for businesses like hedge funds. Last year, Colorado limited these windfall gains temporarily and we need to continue to do so.
Colorado needs to update its tax laws to prohibit income from being sheltered in overseas tax havens and to make sure large multi-state companies pay Colorado taxes for Colorado profits.
This tax break benefits only a few thousand tax payers (out of about 3 million in Colorado) but costs the state about $20 million per year.
This tax break created decades ago was intended to attract jobs to Colorado. But an independent audit shows it's costing the state nearly $100 million a year without bringing more insurance sector jobs to Colorado than to other states. By tightening this tax provision we can make sure insurance companies pay their fair while still incentivizing job creation.
Another insurance industry tax break from long ago was meant to make retirement investments more affordable, but is now claimed much more broadly, costing the state tens of millions per year. By tightening this tax provision we can continue to encourage responsible retirement savings without rewarding companies who sell other financial instruments that aren't about retirement.
Several years ago, a major oil company won a Colorado Supreme Court that significantly expanded allowable deductions, allowing companies to get away with paying less tax. By restoring this tax provision to its original intent we can close this loophole.
Colorado pays retailers to collect sales tax and remit it to the state. It's one thing to assist small local businesses this way, but the largest global retail corporations don't need a subsidy from Colorado taxpayers. By ending this subsidy for retailers with over $1 million in sales per month, we can support small local businesses instead.