How the House Tax Proposal Would Affect Colorado Residents’ Federal Taxes
On Thursday November 2nd the House Ways and Means Committee introduced the Tax Cuts and Jobs Act in the House of Representatives. It contained the same major flaws as prior GOP tax plans and frameworks. The House GOP tax plan prioritizes tax cuts for the wealthiest households and profitable corporations, it would dramatically increase the deficit, which would likely force future budget cuts to programs like Medicaid, Medicare and safety net programs, and it offers no benefits to most low-income working families: instead, it hurts many.
This plan would be detrimental to our nation as a whole and to communities across the states, including Colorado communities. The Institute on Taxation and Economic Policy (ITEP), recently released state specific data that looks at the impacts of this plan on Coloradans. The data includes:
- The share of tax cuts in Colorado going to each income group in 2018 and 2027.
- The average tax cut for each income group in those years, in dollar amounts.
- The average tax cut for each income group in those years as a share of income.
- The fraction of taxpayers in Colorado who would pay higher taxes under the bill.
Additionally, ITEP released a full report which found that the richest Americans benefit most from the Tax Cuts and Jobs Act.
Click here to read about Colorado specific data.
Click here to read the full report.
