A graduated tax plan could undercut Colorado’s business competitiveness, analysis warns

The proposed shift to a graduated income tax in Colorado, which would impose varying tax rates on individuals and businesses based on earnings, is projected to bring in over $2 billion in its first year. However, a study by the Common Sense Institute cautions that this change could potentially harm Colorado's business environment, making it less attractive for companies compared to neighboring states. This development is significant as it could impact economic growth and the overall competitiveness of the state's business landscape, potentially leading to shifts in business operations and investments.