Proposition 136State law · Citizen initiative
Cap income tax at 4.4 percent
Explain it like I'm 5
Colorado's current income-tax rate is 4.4 percent. This would put a permanent ceiling at that same number, like putting a lid on a container without taking anything out.
Yes vote
Individual and corporate state income-tax rates may not exceed 4.4 percent under state law.
No vote
The current rate remains for now without this new statutory ceiling, leaving future voters more flexibility.
The question to ask yourself
Is permanently locking in 4.4 percent worth giving up future flexibility to change income-tax policy?
The case for
- The cap gives workers and businesses certainty about the maximum rate.
- Supporters say it protects Colorado's current flat-tax approach and competitiveness.
- It reinforces the existing 4.4 percent rate without raising taxes.
Backed by: Advance Colorado, Colorado Chamber of Commerce, Americans for Tax Reform
The case against
- The cap could limit future funding options for schools, health care, roads, and emergencies.
- Colorado voters already must approve tax-rate increases, making the cap potentially unnecessary.
- It could prevent future voters from choosing a different tax structure.
Opposed by: Protect Colorado's Future coalition, Colorado Fiscal Institute, Bell Policy Center
- Money
- There is no direct fiscal impact because the current rate is already 4.4 percent, though future revenue could be limited if rates would otherwise rise.
- Don't be misled
- It is misleading to call this an immediate tax cut, because the current 4.4 percent rate would not change.