Capitol Gains: They’re baaack – these bills never really went away
By Ali Mickelson
Director of Tax and Legislative Policy
“Don’t call it a comeback! I’ve been here for years”*
As with Joe Montana and the McRib, a legislative comeback can elicit excitement and celebration.
Sometimes legislators and advocates hope for similar receptions, pushing bills that are second, third or fourth attempts at enacting certain policies. Many of the pieces of legislation we are supporting this year are “comeback” bills that we’ve pushed in the past. For various reasons, these bills failed in previous years, but we’re hopeful they will go the distance in 2016.
First, we are again hoping to pass a tax expenditure reporting bill that requires the state auditor to evaluate all 200-plus tax credits, deductions and exemptions in Colorado’s tax code. We think this is a common-sense policy that ensures Colorado lawmakers make the best, most informed decisions about where they spend our tax dollars. This bill has not yet been introduced but is likely to come out of the Joint Budget Committee, and we anticipate it will again receive bipartisan support.
Another bill that has been brought back is HB 16-1003, the Middle Class College Savings Act. This measure will incentivize low- and middle-income families to save for college by increasing their state tax deduction for contributing to a 529 college savings plan. Sponsored by Reps. Pettersen and Young and Sens. Merrifield and Todd, the bill is a great, fiscally neutral way to support Colorado families that are struggling with the increasing expense of higher education while creating more equity in the tax code. The bill passed out the House Education Committee on March 7 and next moves on to the House Finance committee.
A third blast from the past is HB 16-1045, which creates a Child Tax Credit. In 2013, CFI worked to pass SB 13-001. This bill made permanent both the Earned Income Tax Credit and the Child Tax Credit if certain triggers were met.** However, the trigger for the Child Tax Credit has still not been met, so this bill removed the trigger and created a permanent , statewide Child Tax Credit today, sans trigger.
Although it comes with a significant fiscal note, CFI has been a longtime supporter of the Child Tax Credit because we know that it creates opportunities for families with children and reduces the number of children in poverty. The federal CTC lifted roughly 3.1 million people out of poverty, including 1.7 million children in 2013. Research also shows that children in families that receive additional income through tax credits like the CTC do better in school and are more successful as adults.
Unfortunately, this bill was killed in the House Finance Committee earlier this month, largely due to questions around the fiscal impact in light of a strapped state budget. However, I have a feeling this will not be the last appearance of the Child Tax Credit and it may again land on our list of comebacks.
One thing that has definitely come back is CFI’s focus on equity as a framework for our legislative activities during the 2016 session. By evaluating the impact of bills on economic equality and examining who benefits from certain policies, CFI will be dedicating our resources to lifting up ideas that promote equity and widespread prosperity for all Coloradans — especially those working to make an economic comeback of their own.
If you would like to join our coalitions supporting any or all of these bills, please contact Ali Mickelson at mickelson@coloradofiscal.org.
*James Todd Smith, a.k.a., LL Cool J
**We met the trigger for the EITC in 2015, and that tax credit is now available to Colorado families. Yippee!
