DENVER — While arguments around the impact to Medicaid and other social programs are front and center in debates over the “One Big Beautiful Bill,” making its way through Congress, what’s forgotten is that Coloradans will see their income taxes rise by hundreds of thousands of dollars if President Trump’s temporary tax cuts of 2017 are not extended permanently under the bill.
And that includes most Coloradans, not just the “ultra-wealthy” as some such as Colorado Sen. John Hickenlooper want people to believe.
The Tax Cuts and Jobs Act (TCJA), which was put in place during Trump’s first administration, heavily benefits middle-class tax filers. The Tax Policy Center has created a calculator for anyone to see how the TCJA expiring would affect them.
The TCJA made substantial changes to income tax rates that included such things as reducing the rates at nearly all income levels, while shifting the thresholds in several others.
It also increased the standard deduction by nearly double — allowing more filers to take that credit versus itemizing their deductions, which can flag a tax return for audit even in simple cases — and increase the Child Tax Credit (CTC) from $1,000 per child to $2,000, while increasing the maximum amount that was refundable.
Many other intricacies of the act included the amount one could deduct for things such as home mortgage interest and out-of-pocket medical expenses. It also removed the penalty for failure to have health insurance, which was put in place under the Barack Obama administration.
All of this among other things are set to go away if the “One Big Beautiful Bill” does not pass.
A spokesperson for Rep. Gabe Evans, R-Fort Lupton, who represents the 8th Congressional District, said 109,790 families in Evans’ district would see their CTC cut in half.
“Congressman Gabe Evans has been supportive of the Trump Tax Cuts because they are a win for Colorado families. Republicans’ plan to extend the Child Tax Credit keeps costs low for families and puts more money back in their pockets,” said Delanie Bomar, Evans’ deputy chief of staff.
Evans’ office said also the impact on 8th CD taxpayers include:
- 84 percent would see their guaranteed deduction halved
- 67,280 small businesses would see a 43.4 percent tax rate, compared to corporations whose rate is at a permanent 21 percent
- 20,354 taxpayers would be hit by the alternative minimum tax, which was discontinued under the TCJA
- 1,908 family-owned farms would have their death tax exemption slashed in half
Evans’ office says 90 percent of individual taxpayers will see up to a 20 percent tax hike:
- Single filers with no children would pay $2,028 more in taxes
- Married filers with two children would pay $1,681 more in taxes
- A family of four making the medium income would see a $2,040 increase in taxes
Joshua Sharf, a Denver resident and a regular Complete Colorado columnist said those who don’t support this bill will not be happy with the results in the end if it fails.
“For most Colorado taxpayers, making the Trump tax cuts permanent is good for their bottom lines, and those who let Sen. Hickenlooper’s brand of class envy get the better of them are in for an unpleasant Tax Day surprise if their emotions become policy,” Sharf wrote in an opinion piece on the topic.
