March 18, 2026 10:07 AM UTC

Graduated Income Tax Initiative Begins Signature Gathering Campaign

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• by: Keith Gelderloos

(Something you can do about it — Promoted by Colorado Pols)

Originally posted at the Colorado Times Recorder

Educators, health care workers, local officials, and others rallied on the steps of the state Capitol Tuesday to launch a campaign to place an initiative on the November ballot that would ask voters if they want Colorado to implement a graduated income tax.

Initiative #195, or “Graduated Income Tax” as it is officially referred to, would implement a tax system in Colorado that would be similar to the federal government’s, in which higher earners pay more. Currently, the state’s tax rate is 4.4% regardless of income.

“Many voters that we talk to [are] shocked that the wealthy pay the same tax rate as everybody else,” said Chris deGruy Kennedy, president of the Bell Policy Center. “Colorado’s one of only 14 states that has a flat income tax. There are 27 states — including 11 red states — that have a graduated income tax.”

The proposed initiative would create five separate tax brackets that would apply to both individuals and businesses. Those making more than $500,000 per year (a bit less than 5% of Coloradans) would see their tax rate increase to between 7.4 and 8.4%, while those making less than $100,000 a year will see a tax cut of between 0.2 and 0.7%. People paying less than $500,000 would not pay more in state income tax.

Roughly 125,000 signatures will need to be collected for the measure to be placed on the November ballot, including at least 2% of the voters in each of the 35 state Senate districts. Those signatures will need to be submitted for review by Aug. 3.

The $2 billion collected by the additional taxes would be used to supplement, rather than supplant, current funding in areas such as K-12 education, health care, and child care. The language in the initiative specifies how the funds can be used, such as increasing teacher pay, replacing Medicaid funding lost to federal cuts, and for programs that increase access to nutritious food.

“Students are facing pandemic-driven learning gaps — we offer them classrooms with [more than] 26 students and one teacher,” said Deborah Sims-Fard, a long-time public school teacher who spoke at the today’s rally. “A graduated income tax could be the light that is needed to fund public education and level the playing field for our children and our future.”

The initiative — and the signature-gathering effort — is championed by the group Protect Colorado’s Future (PCF), a coalition of 19 community advocacy and policy organizations, including the Bell Policy Institute, ProgressNow Colorado, as well as many other organizations that deal with a broad range of issues in the state. The initiative has also received support from more than 27 state legislators and 16 other groups not affiliated with PCF.

Proponents of the initiative say that it’s what the state needs to address its current budget crisis.

“This is actually a policy where the voters get to say, ‘We are not going to just let folks who are struggling continue to struggle,’” said state Rep. Brianna Titone, who is currently running for state treasurer. “We’re going to say to the people who have the means, ‘Pay a little bit more to help the economy keep going.’”

Critics worry that the tax changes would place a much greater burden on businesses than on individuals, and the initiative was also previously challenged on the grounds that it dealt with more than one subject, although this claim was later disregarded by the board governing the process.

There’s still a long road until election day, and with the initiative having already faced several legal challenges prior to it being approved to gather signatures last month, there will almost certainly be more difficulties ahead.

The initiative currently faces a challenge in the state Supreme Court, although deGruy Kennedy remains confident in the initiative’s success after reading their opposition’s opening briefs, calling their arguments “lame.”

“They’re throwing legal spaghetti at the wall to see what sticks. The Supreme Court hates that,” said deGruy Kennedy in an interview following the rally. “I just think it’ll be as clear as day for the justices.”