2024 TABOR Surplus Dollars: Why they should target low- and middle-income families
April 4, 2024
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This brief looks at the distributional impacts of returning TABOR surplus revenue through five methods and which method would be most beneficial to low- and middle-income working families for tax year 2024:
- Cutting the State Sales Tax
- Six-Tier Sales Tax Mechanism
- Earned Income Tax Credit
- Cutting the Income Tax Rate
- Identical TABOR rebates
How TABOR rebates will be sent to Colorado taxpayers for Tax Year 2024 hasn’t been decided yet. As legislators consider which bills are priorities for their constituents and all Coloradans, working families should be top of mind. We find the best way to center these taxpayers is through funding the Earned Income Tax Credit at 50% of the federal credit and making the identical TABOR rebate mechanism permanent.
