Editor’s note: Gov. John Hickenlooper recently said many of the Coloradans he met on the campaign trail were surprised to learn that the state has one of the lowest tax burdens in the country. Facing another $1 billion shortfall in the state’s budget, is it time to consider a tax hike? A liberal policy group recently proposed six mix-and-match versions of a tax increasea strategy designed to see which combination might pass muster with the state’s title board. All of the initiatives would increase Colorado’s flat income tax rate of 4.63 percent. Today we explore two sides of that issue.
The deep cuts to schools, colleges, parks and other public services that Gov. John Hickenlooper proposed earlier this month reinforce what many have agreed on for a long time: A focus on trimming the fat from government will not solve our state’s structural budget problems.
Faced with that reality, many Coloradans are looking for alternatives to further reductions in the services we all depend on. How do we keep our state a great place to live, work and raise a family? Our ability to move Colorado forward will improve when residents engage in a conversation that includes all options and solutions.
For a couple of decades now, debates in Colorado have focused on a choice between poor and even poorer investments in our communities. In our state constitution, the Taxpayer’s Bill of Rights (TABOR) provides us with a uniquely Western tool for addressing that challenge: a public election. Let’s have an open discussion about investing in the public infrastructure that supports our communities and about what constitutes a fair stake in that investment. Let’s ask ourselves in November if we are ready to raise our state taxes to pay for the Colorado we want.
Colorado voters are smart. We are accustomed to sorting through complicated ballot measures that put us, not our elected officials, in the role of decision-maker. We relish that responsibility even if we tire of the endless campaigns that accompany the role. Through a respectful and thoughtful conversation about the role of the public sector in our communities and our economy, we will be prepared to make informed decisions about what services we all want and how we are willing to pay for them.
It is fine that some advocate for more cuts in education, basic health care and infrastructure investments. Since most Coloradans value those services as vital to our communities, however, intellectual integrity dictates that revenue be part of the solution. We want our kids to be able to compete for good jobs. We want to be able to safely get to and from the mountains. We want a public health system that safeguards the health of our communities. All of those vital services require money, and at this point Colorado simply does not have enough to maintain our investments.
Colorado ranks 49th out of the 50 states in the amount of state taxes paid. To remain competitive and attract quality businesses to Colorado, we need to reinvest in our vital community services.
Some people say we can’t afford this discussion so close to a recession. Can we afford to not invest in those kids in elementary school today? Of course, 2011 is a tough year, but avoiding a discussion of what this bad economic stretch has meant for common infrastructure doesn’t make the problems go away.
We all want Colorado to stay a great place to live, work and raise kids. aps differ on what it takes to make Colorado a great place, but we are cheating ourselves is we don’t embrace a complete conversation about how to achieve our common aspirations.
For far too long, any discussion of the role of taxes in community and economic vitality has been dominated by fear that even the mention of increased taxes would unleash torrents of backlash. It is time to face up to the disagreements, since no one is well-served by quashing a thoughtful debate on our economic future.
In Colorado, voters decide on taxes and tax rates. As decision- makers, residents deserve an informed conversation on options for creating the communities we want. That discussion must include ways to make our services more efficient, but it also must include options for increasing investments through increased tax revenue.
What are we afraid of: government by the people and for the people?
Carol Hedges is director of the Colorado Fiscal Policy Institute, a project of the Colorado Center on Law and Policy.
