An in–depth analysis by a nationally known economist shows that a tax increase proposed by State Sen. Rollie Heath (D–Boulder) that is aiming for the 2011 ballot would reduce 119,000 jobs over the five years the higher rates on sales and income taxes are to be in effect.
The study was conducted by Dr. Eric Fruits of Economics International for the Common Sense Policy Roundtable to measure the likely effects of possible ballot initiatives on the Colorado economy. The study examines the effect of the prospective tax increases on job growth in the state as well as the migration of taxpayers and their income.
As shown in the table below, the tax increases under Sen. Heath’s proposal would have a negative impact on employment in Colorado and slow the state’s recovery from the recent recession. The study indicates that Sen. Heath’s proposal would reduce employment by 5,500 in the first full year, and that the reduction in growth rates over time will reduce employment by 30,500 by 2017, with a cumulative impact of 119,700 fewer working Coloradans.
|IMPACT OF HEATH MEASURES ON COLORADO EMPLOYMENT|
|Year||Reduction in Employment||Cumulative Reduction in Employment|
In addition to the harmful impact on employment, the study also shows that Sen. Heath’s proposal would substantially slow the migration of taxpayers to Colorado by 3,610 a year.
“Our study concludes that Sen. Heath’s initiative will be a step backward for Colorado’s economic recovery. While Sen. Heath touts his initiative as a way to make up for cuts in education spending, the fact of the matter is, nobody can guarantee that the new revenue will go to education”, said CSPR Spokesman Dustin Zvonek.
“Appropriation of General Fund revenue is determined by the legislature, and with the composition of the legislature changing every two years nobody can guarantee what Sen. Heath is promising”, added Zvonek.
To view the full study, go to www.commonsensepolicyroundtable.com
Common Sense Policy Roundtable is a non–profit free–enterprise think tank dedicated to the protection and promotion of Colorado’s economy. CSPR actively follows tax—and budget–related legislation and initiatives. To learn more visit www.commonsensepolicyroundtable.com or call Dustin Zvonek at 303.518.1663