The Progressive Income Tax

What We Believe

A proposal to replace Colorado’s long-standing flat income tax with a progressive system would mark the largest tax increase in state history, allowing lawmakers to keep an estimated $3.6 to $4.1 billion annually instead of refunding it under TABOR. The measure would exempt this new revenue from TABOR limits, weakening taxpayer protections and giving legislators broader discretion over spending.

In 2025, Colorado ranked as the third most expensive state to live in. Higher taxes on businesses and top earners would likely drive out higher-income residents, making the state even less affordable. While framed as a “tax the rich” initiative, it’s ultimately designed to significantly expand overall government revenue and spending without voter approval after its passage.

The progressive income tax is being proposed in a year when the state reports an $850 million budget shortfall tied to overspending federal COVID funds. Rather than reducing spending, the measure would allow lawmakers to retain surplus revenue, eliminate TABOR refunds, and direct billions more into the state budget. But high-income households are the most mobile, and if they leave, Colorado would lose a significant share of its tax base. By preserving TABOR and the current flat income tax rate that voters have supported for decades, Colorado ensures stable revenue, while protecting taxpayers from unchecked government expansion.

Elizabeth Caven

Elizabeth serves as the Outreach Director and Policy Analyst at Advance Colorado. She previously worked for the Colorado House of Representatives for nearly three years as a legislative aide, where she assisted in policy work across a range of issue areas for the caucus. Elizabeth earned dual undergraduate degrees in Politics and Philosophy from Colorado Christian University. While at CCU, she served as President of the Philosophy Club, participated in First Liberty’s D.C. Fellowship Program, and worked with the Centennial Institute. She and her husband, Jason, live in Littleton.

At Advance Colorado, we believe in an education system that puts Colorado parents and students first through a system that emphasizes:

At the heart of Colorado’s school system is school choice, in which our state has been a national trailblazer for decades. – a system that has enjoyed deep, bipartisan support.

What We Do

We craft cutting edge policies that empower parents, taxpayers, and teachers and push back on the status quo interests that resist reform.

Our 2024 Policy Agenda includes several important education reform priorities. Read it HERE

This year, we are leading the charge to protect the school choice rights we currently have – rights that are annually under siege from the education establishment groups that want to eliminate your right to choose the best school for your children. We can secure our rights into the future through a school choice amendment to the Colorado Constitution.

Read our policy brief on this important issue HERE.

What You Can Do

We help citizens become advocates and leaders.

Whether you are a concerned parent, grandparent or taxpayer, Advance Colorado can equip you with the knowledge and tools to be an effective advocate for high quality, accountable schools. Learn more about our ambassador program.

And if you are interested in running to become a member of your local school board, you can apply to participate in the Advance Colorado Academy New Leader program. LINK If you are a current school board member, you can enroll in our “You’ve Won, Now What?” program. Learn more about our “You’ve Won, Now What?” program.