Archive for the 'Amendment 66' Category

Analyze This: The Economic Recovery That Wasn’t

Posted by on Oct 06 2014 | Amendment 66

A new report from the Liberty Foundation puts a big stick in the spokes of the supposed “recovery” our economy has had since the Great Recession.

The number of Coloradans in the labor force has fallen significantly for several key groups according to the National Labor Force Participation Rate report from our friends at The Liberty Foundation. To download just the Colorado report, click here.

The report analyzes the employment percentage of each demographic in Colorado’s labor force, revealing staggering participation losses, often within the last half decade.

Coloradans saw the number of those active in the labor force dip 4 percent overall – from 72.1 to 68.1 percent – from 2008 to 2013. But the broad numbers disguise the decline across many demographic subsections.

In 2008, on the cusp of the recession, the labor force percentage for Hispanics stood at 71.9 percent, dropping to 67.7 percent by 2013. But while the percentage remained relatively flat for Hispanic women (near 60 percent), Hispanic men saw a decline by nearly 9 points - from 84 to 75 percent.

African-American labor force rates declined 2.5 points over the same time span, but the decline for men outstripped the overall decline, from 75 percent to just below 70 percent.

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Colorado women saw their numbers shrink as well. Even as most of the age groups for women saw relative stability, the number of women aged 20-24 in the labor pool slipped more than 5 percent.

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The data reveals Colorado’s employment problems are neither racist nor sexist. In fact, men have been plagued with reduced labor participation rates as well.  While their older male counterparts have seen employment tick back up slightly, the bottom has fallen out for young males. In 2001, teen male employment stood at nearly 62 percent. In 2008, the rate dropped to 45 percent. Today? Just 35.6 percent of males between ages 16-19 participate in the labor force – nearly half what it was in 2001.

Here’s where the unemployment rate of each group stands, looking at the 5 year period ending in 2013. Overall, the unemployment rate grew from 4.8 percent to 6.6 percent. Hispanics saw the largest jump, more than 3 percent, with women and then men trailing with unemployment increases.

Cato’s 2014 “Fiscal Policy Report Card on America’s Governors” gave incumbent Colorado Governor John Hickenlooper an “F” – second from last -as they dinged the Democrat for “ballooned” general fund spending. You can read my blog post about Hick’s failing grade here.

According to the report, spending would increase 28 percent from $7.2 billion in 2012 to $9.2 billion in 2015, an average of 6 percent each year. Cato noted that the billion dollar Hickenlooper-backed Amendment 66 tax increase that would have increased Colorado’s income tax from a flat 4.63 percent to an onerous, two-tiered rate of 5.0 and 5.9 percent, was “soundly rejected by voters” at a 2-to-1 margin. Thank goodness.

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Forget Waldo. Where’s Hick?

Posted by on Oct 24 2013 | Amendment 66, Economy, education, elections, Taxes

When it comes to raising debt and taxes, John Hickenlooper is a rainmaker. As mayor of Denver, he jumped out of airplanes to poke a hole in TABOR, wore a blue bear suit for tourism taxes, rode the trolley for RTD’s Fastracks boondoggle, walked with Sesame Street-like letters A through I to raise property taxes and money for Pro-comp for Denver teachers, and a new jail…

Now, in his first foray into tax hikes as governor, he is AWOL. He has worked the phones to pull in millions for the Amendment 66 campaign and said nice things about this 27.4% income tax hike at public events, but he has been missing in action when it comes to taking the lead in selling it. Why? Your guess is as good as mine.

In his past anti-taxpayer conquests, he was able to build a broard coalition of diverse organizations and bipartisan support. But not a single elected Republican supports 66. His usual partners in crime at the Denver Metro Chamber won’t even stand by him. Business groups like the NFIB and Colorado Concern have endorsed a “No” vote. Even Left-leaning editorial boards like the Fort Collins Coloradoan urge defeat.

Without the comfort of the herd, Hick seems content to play only a supporting, backroom fundraising role. Could it be that, after his debacle taking Michael Bloomberg’s advice on gun control (which cost him two senate seats), angering rural Colorado with a renewable energy mandate, and being unwilling or unable to make a decision on clemency for mass-killer Nathan Dunlap, Hick wants distance from another potential embarrassing loss?

Well, we can’t stay quiet and MIA like Hick. The Independence Institute has taken the lead in spreading the truth about Amendment 66. In fact, our work has made it up to our friends on The Wall Street Journal’s editorial page. Their lead editorial today warns: “Democrats and unions try to kill Colorado’s flat tax.”

Our educational effort is called Kids Are First. I urge you to go to www.KidsAreFirst.org right now. There, you’ll see many resources, including the videos we’ve been airing on television. Please share this site with everyone you know. Unlike Hick’s team, we don’t have $7 million+ to get the word out.

And our scholars have been busy actually READING this 150 page monstrosity. Learn about their findings:

Ben DeGrow’s Issue Paper: Amendment 66: Unfair and Overpriced

Ben’s op-ed: Tax Hike Won’t Deliver on its promise

Linda Gorman’s Issue Paper:
A Billion Dollars Worth of Bad Ideas: Amendment 66 Tax Hike

Linda’s Issue Backgrounder: Amendment 66: Spend More, Get Less

My debate with Senator Michael Johnston: 9News video

You know the whole country is still reeling from the last bill we “had to pass to see what’s inside of it.” Amendment 66 is Colorado’s version.

Please get involved in sharing the word. The wallet you save may be your own.

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Colorado’s Billion-Dollar Tax Hike Proposal: Really Bad Constitution-Writing

Posted by on Sep 24 2013 | Amendment 66, Constitutional Amendments, Economics, Economy, education, Initiative 22, Politics, Taxes

Hear Justin Longo’s interview with Rob on Amendment 66 here.

Colorado’s Amendment 66—the billion dollar tax hike—is a constitutional monstrosity.

Amendment 66 is, technically, not entirely a constitutional amendment. It is an unusual hybrid of constitutional amendment and change in the state tax law. The secretary of state refers to it as Initiative 22, and it is on the ballot this fall.

The constitutional change would lock in a hugely-disproportionate share of state spending for a single program at the expense of every other Colorado service, public or private. The statutory change would impose a big hike in the state income tax.

As explained below, the costs across a wide range of areas—including public health and safety—could be immense.

But before we get to that, just think of how unfair this measure is:

Under its rules, everything else would take a back seat to the demands of the school bureaucracy. Law enforcement would suffer. So would disaster relief, parks, the environment, services for the elderly, health care, our universities, not to mention economic investment and the taxpayers’ own needs.

Why? Because Amendment 66/Initiative 22 says that (with a sinister refinement explained below) the state school bureaucracy “shall, at a minimum, receive forty-three percent of sales, excise, and income tax revenue collected in the general fund.” In other words, it requires that we spend nearly half our state general fund for a single service before funding anything else!

And that 43% is only a floor. Amendment 66 demands even more. Here’s why:

* The 43% is in addition to what we pay in property taxes.

* The statutory part adds a steep income tax hike on top of that and gives all he revenue to the school bureaucracy.

* The 43% is calculated on what the older, lower tax rates would have brought in. But an income tax of, say, 20% yields less than 20% more revenue, because of disincentives and tax avoidance. So the 43% is calculated on the older, richer system, not on the newer, poorer one.

Now consider some of the other consequences:

* Because of the 43% strait jacket, the legislature couldn’t freely reallocate existing revenue to new needs. For example, the Denver Post has reported that due in part to funding limitations for supervision, inmates released on parole often commit new crimes, including murder. Yet Amendment 66 would make re-allocating funds to parole supervisions that much harder, thereby endangering the lives and safety of Colorado citizens.

* That means a primary way of allocating revenue would become more tax increases.

* We would be crippled in adjusting school costs to reflect changes in technology or to promote educational accountability. Even if schools don’t do the job or are using money wastefully, they still get their guaranteed cut. This violates a basic principle of Anglo-American constitutionalism: agencies are responsible to the legislature for what they do with appropriated funds.

* State income taxes would jump for everyone—by over 27% for everyone with a taxable income of more than $75,000, and 8% for everyone else.

* And the cost of living would rise for every family in the state—including and especially the poor. This is because tax increases–even they seem to hit only the “rich”—have a way of seeping through an economy like venom. Almost everyone pays in the form of higher prices, lower incomes, and fewer jobs. A tax hike, like water, runs downhill.

* Higher taxes also weaken the entire economy. Don’t be misled on this score: The studies show that the additional spending mandated by Amendment 66 is likely to harm much more than it helps.

* The state income tax hike could wound Colorado’s economic competitiveness and kill Colorado jobs—a serious concern right now. Remember that we are in economic competition with other states and other countries, and several of our neighbors either don’t have an income tax or are cutting, reducing, or phasing out the income taxes they have.

* Colorado’s current tax may look like a flat rate, but because of the base on which it is calculated it is actually somewhat punitive as to income. Amendment 66 would make it much more so. Tax hikes like that have been shown to be particularly damaging to prosperity.

* Because the 43% guarantee is based on revenue from former, lower tax rates, the Amendment 66 insulates the school bureaucracy from the economic damage imposed by the tax hike.

A good constitution protects individual rights and structures government to serve the interests of all. But Amendment 66 mutilates our state constitution to privilege the greedy few. It transfers more money to the bureaucracy to do things that will hurt the general welfare, including the welfare of our children.

This violates every principle of good constitution-writing.

* * * *
P.S.: Here’s the ultimate irony: For years advocates of this money-grab have attacked Colorado’s Taxpayer Bill of Rights (TABOR), claiming it unduly restricts the legislature. Yet now they want to constrict the legislature far more than TABOR does. Hypocrisy, anyone?

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