Amendment 66 is asking voters to approve a tax increase to raise money for P-12 education. The initiative would raise an estimated $950 million in its first year.
The measure would increase the rates on taxable income under $75,000 from 4.63 percent to 5 percent. Individuals with taxable income of more than $75,000 per year would pay a rate of 5 percent on the first $75,000 and a rate of 5.9 percent on any taxable income above that amount.
The lowest-income taxpayers in Colorado pay the largest percentage of their income in taxes. Someone making $28,000 a year pays 9% of their income in state and local taxes whereas someone making $1 million pays only 4.6%. The two-step tax proposed by Amendment 66 would narrow the difference in percentage of income paid in taxes between the highest and the lowest income groups.
The median household income is $57,000 per year in Colorado, which works out to $133 more per year under this new rate, or roughly 36 cents a day.