The Colorado General Assembly will convene on January 8, 2020. There are many issues to be tackled during this session and it is rumored to be one of the most controversial and busy sessions yet. One of the top priorities of Governor Jared Polis is to repeal tax breaks and lower the state’s income tax. Since 2016, the state auditor’s office has begun the process of reviewing more than 200 tax breaks in Colorado in order to learn of their impact (Frank, 2019). After reviewing these tax breaks in 2018 and 2019, it is up to the lawmakers to decide whether to keep them or do away with them. In order to determine what should be done, a Tax Expenditure Evaluation committee has been created to consider policy recommendations from the auditor’s office. They will then determine what to do with the tax credits. The committee will consist of four Democrats and two Republicans. They will meet up to four times and are able to sponsor up to five bills (Frank, 2019).
Taxation is largely a polarized issue. Republicans most often only desire taxes that are necessary for the basic functions of government. They want low taxes and low government involvement. They would be in favor of keeping these tax breaks. Democrats, on the other hand, are usually in favor of more taxes for more government involvement and programs. They will like to see these tax breaks eliminated. Because of this polarization, there is going to be a lot of debate regarding this issue in the 2020 General Assembly.
In an article by Kelsey Hinchliffe and Frances Lee, they discuss how polarized some state legislatures have become, especially in states that are more competitive between parties. Colorado is currently controlled by the Democratic party, so the Democratic majority will have a much easier time passing their legislation through the chambers. A quote from Alan Rosenthal in 1990 in regard to opposing parties defeating each other in elections, he says, “… each tries to discredit the other, not only during an election campaign but also during the conduct of government” (Hinchliffe and Lee, 2016). This will be the position of the Republicans during the next session. Because they are the minority, they will be trying to discredit the Democrats and block their legislation. Adler, Jenkins, and Shipan (2019) say that when a party is in the minority and without their party in the presidency, their goal is to just oppose the majority and/or president. These authors spoke of it on a congressional level, but this can be translated down to a state legislature level as well. With Republicans in the Colorado General Assembly opposing the elimination of tax breaks, their main goal will be to take down any legislation on the topic proposed by Democrats and the Tax Expenditure Evaluation committee. Below is the division in the Colorado General Assembly between Republicans and Democrats. Across the Assembly, Democrats have a large margin of 60% control against 40% Republican control, so it will be very difficult for Republicans to block legislation in this upcoming session.
Data from https://ballotpedia.org/Colorado_House_of_Representatives and
https://ballotpedia.org/Colorado_State_Senate
https://coloradosun.com/2019/05/29/colorado-lawmakers-interim-study-committees/
Kaitlyn, I found your post to be very informative. It is great that the committee looking into this issue is made up of both Republicans and Democrats. Hopefully this bipartisan effort will lead to a consensus of whether tax breaks should exist or not.
ReplyDelete