Amendment 87 (Statutory)

Colorado’s flat income tax requires working families and millionaires to pay the same income-tax rate, while the overall state and local tax system places a greater burden relative to income on many working- and middle-income households. Initiative 195 would replace the flat tax with graduated marginal rates, lowering income-tax rates on the first $100,000 of taxable income while asking individuals and corporations earning more than $500,000 to pay higher rates on income above that amount. The measure is expected to raise approximately $2 billion annually for public education, health care, and early childhood care and education, with requirements that the new funding supplement existing spending and be publicly reported and audited. A graduated system provides tax relief at lower incomes while asking those with the greatest ability to pay to contribute more toward essential public services.