More Tax Breaks At Risk In Colorado
This Time Around The Democrats Have “Dynamic Analysis”
Colorado House Majority Leader Paul Weissmann and his gang of Democratic friends have learned that with the aid of the Colorado Supreme Court, every tax credit and exemption in the books is subject to elimination despite the Taxpayer’s Bill Of Rights (TABOR) amendment. If the Colorado State legislature and State Supreme Court has learned anything, it’s that the political will to raise tax revenue can be far greater than any State Constitution.
The Colorado News Agency reported that the Majority Leader, Paul Weissmann is proposing a “dynamic analysis” study for the remaining tax breaks the Democrats haven’t abolished.
The measure proposed by Democratic House Majority Leader, Paul Weismann of Lousiville, would direct the General Assembly’s Legislative Council to prepare a report that reviews each tax exemption and credit at prescribed intervals. The reports would then be provided to the legislature for their consideration.
Now I wonder what such a report might say? Might it mention something along the lines of increased tax revenue? Well, that’s certainly what Weissmann and other members of the anti-tax break cartel are counting on anyway. Nothing’s easier than asking to repeal another tax credit with a report showing how much more money can be taken from Colorado businesses and citizens to pay for government services that Colorado businesses and citizens can’t afford. The only question is how much revenue they “think” they can take in since they can’t measure the unintended and unforeseen consequences in every tax credit elimination. You can however see the obvious. If you transfer wealth from the private sector into the State government coffers, businesses and people have less money. Rather than sensibly making cuts (the world won’t come to an end) to make up the budget difference, Rep. Paul Weissmann would rather search for more money from Coloradans in one of the hardest economic times in decades.
Also reported:
Rep. Kent Lambert, R-Colorado Springs, said dynamic analysis has been bandied about over the years, but he questions the notion of singling out tax credits and exemptions as the sole barometer of decisions regarding tax policy.
“To say we’re going to apply this concept just to tax credits and exemptions — the only action that can possibly be taken is we’re going to eliminate the tax credit or exemption,” said Lambert. “That’s the only actionable thing.”
Rep. Lambert is correct. “…the only actionable thing” the Democrats will try to do is eliminate the tax break. Do they expect the “dynamic analysis’ to say eliminating a tax exemption or credit will cost the state money?
As Clear The Bench Colorado aptly concluded:
What, the “Dirty Dozen” tax increases weren’t enough, so now it’s the “Horrible Hundred?” (Actually, I only counted 66 statutory tax exemptions – although some statutes account for multiple items – so, minus the “Dirty Dozen”, perhaps it’s only the “Filthy Fifty.” Take the “New Tax Lottery” survey for yourself and see how many new taxes YOU might get to pay!)
The argument you may hear from some legislators is that these some of these tax credits and/or exemptions are corporate welfare. Of course that will lead them to argue that companies and whatever various special interest are not paying their fair share. They will claim that such an unbalanced tax system isn’t fair and “the children” need the funds for education (not that the parents of these children need jobs and financial security) Granted, most tax credits were granted as a result of political favor and ideally there would not be any special politically favored tax breaks. But the reality is that these current tax credits and exemptions came about and sometimes for good reasons. If a tax credit or exemption keeps capital in the private hands where a job might be saved, that is all the better. The only argument the Democrat majority have is saying that because the state isn’t robbing everybody as much as others, the state should robbing some more as the robbing is justified since the state spent all the money it robbed last time…whew…that’s a lot of robbing.
Allow me to help Rep. Weissmann and friends save Colorado significant time and money. Instead of paying for a study, I’ll just give you the short version of the “dynamic analysis” when tax breaks are eliminated. State revenue will rise, private jobs will be lost, prices will rise, the size and cost of the State government will grow, there will be less capital for investment and savings, economic growth will be stifled, and freedom will diminish.
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