Glitch slowing economic recovery
Title: “Governor Owens Ad”
Sponsor: Vote Yes on C&D
Type: Television ads
The message: A glitch in the Taxpayer’s Bill of Rights is penalizing the state for the recession and “slowing our economic recovery.” The state has cut $1 billion in spending since the recession hit in 2001, and the state faces even more cuts. Referendums C and D will let the state spend more money on schools, roads and health care without a tax increase.
Facts: Backers of Referendums C and D, including Gov. Bill Owens, who narrates this ad, insist that the ballot measures do not increase taxes because they do not raise state tax rates.
The individual income-tax rate will remain 4.63 percent if the ballot measures pass this fall.
Referendum C asks voters to give up the tax refunds that would be triggered by TABOR’s spending limits on state government.
Opponents say lifting the spending limits and keeping the money that would be returned is a tax increase.
State officials have cut $1 billion in spending since 2001, according to a report by the legislature’s nonpartisan Joint Budget Committee.
The glitch is caused by TABOR’s strict spending limits. When tax revenues fell during the recession, spending growth was locked at the lower level.
Referendum C would allow the state to return to pre-recession spending levels at a faster pace than if the budget were constrained by TABOR.
Tax bill equals gas cost
Title: “Enough”
Sponsor: Club for Growth Issue Committee
Type: Television ads
The message: The average Colorado family spends $3,200 on gasoline in a year and a half – about the same amount that family would give up if Referendum C is approved by voters this fall. “We can’t control the price at the pump, but we can control our taxes,” the ad says. “Vote no on C.”
Facts: According to an analysis by the nonpartisan state economist’s office, Referendum C would cost the average taxpayer $491 in tax refunds over the next five years. Targeted tax breaks could increase the refund for some special interests.
Opponents of Referendums C, such as the Club for Growth, quibble with the staff estimates on the average tax refund.
They divide the amount of money the state would keep by the number of families to conclude that the average family will give up $3,200 over the five years.
To calculate the cost of gasoline, the Club for Growth ad assumes that the average automobile owner drives 12,000 miles per year, which is the average annual mileage according to AAA.
The Club for Growth assumes that the average vehicle gets 16 miles per gallon, which is similar to that of a large sport utility vehicle. The ad also assumes that the price per gallon of gas is $2.75, which is lower than the current average price of $3.07 per gallon.
Based on the Club for Growth’s estimates, the average Colorado driver would spend $3,094 on gasoline in 18 months.
