Denver, CO – Proposition CC was the ballot item Coloradans voted against in November that allowed the state government to keep the excess tax dollars meant to be refunded to taxpayers.
Colorado Democrats in the legislature and the governor have a major problem. Since they can’t keep more taxpayer money after Prop CC failed miserably at the polls, Democrats are about $1 billion short on paying for their crazy lefty spending spree last Spring. So, they’re trying to find ways to pay for it after the voters said “NO” at the ballot box.
Some of these proposals are horrible for Colorado and have a pretty dishonest theme. This is also a lesson for Republicans who want to sell out their values – Democrats renege on deals.
Let’s start with the Democrats’ crooked deal with Republicans in 2017. Basically, the Democrats gave Republicans an extra $200 million less on the TABOR cap if they allowed something called the “Hospital Provider Fee” to be exempt under TABOR.
Note: We are about to get into the weeds on state tax and spend policy in regards to the Taxpayer Bill of Rights (TABOR). If this bores you, you can cut to the snark at the end…If you are curious, please read on…
We’re not going to go into the minutiae on TABOR Caps, but oversimplifying here, TABOR only allows the state tax slush fund (AKA The General Fund) to grow at a rate of population plus inflation. So, as Colorado’s population increases, so does demand on services, and hence the state budget is allowed to increase. Inflation basically gauges the new value of those dollars, so it adjusts the value of how much the General Fund can increase as well. This is how we come up with the “TABOR Cap” number. Any tax revenue above this number has to be given back to taxpayers. Politicians hate giving people their money back.
The Hospital Provider Fee was between $300 million and $400 Million against the TABOR cap up until 2017. But Republicans gave Democrats an extra $200 million to play with, and really only got a gentlemen’s agreement that the Democrats wouldn’t change the law. Back in 2017, this crooked deal allowed the Democrats to keep the entire $400 million from the Hospital Provider Fee. So, some Republicans voted for this bad deal.
Under TABOR, things that count as revenue can be exempt, like a “fee.” Even though a “fee” is a “tax,” the Colorado Supreme Court doesn’t understand reality and allows a “fee” to not count as a “tax,” and the legislature can exempt these from the TABOR Cap. That’s what the legislature did in 2017 by creating the Hospital Provider Fee (basically a head and bed tax at hospitals).
Now, the Democrats want the money, so they are going to raise the TABOR Cap that they agreed to lower in 2017. Unfortunately, Republicans sold out and got nothing, and the Democrats got everything they wanted.
Now that we’ve confused you with the TABOR Cap, and fees vs. taxes – let’s look at the other shenanigans the Democrats may pull in 2020. There is a brazen proposal to make the state gas tax-exempt under TABOR. This would give Democrats almost another $700 million of our money to play with. Again, this is incredibly brazen because it is clearly a tax that should be voted on under TABOR.
The final proposal is to raise fees for government services, like licensing. Again, most fees are a tax, but apparently, in the liberal Colorado reality, they are not. Again, the Democrats are looking for ways to take your money.
Watch your wallets! And remember, to Democrat politicians – your vote doesn’t count.
Please share!
Remember to check back with the Colorado Citizen Press. We’re always looking for good stories to write. Please use our “Citizen Tip Line” early and often. Like us on Facebook and follow us on Twitter (@COCitizenPress)!