Business groups in Colorado have lined up in opposition to a bill that makes sweeping changes to the tax code.
The measure impacts a dozen tax credits, exemptions and deductions. Insurance companies are among the employers that would be impacted. Right now they qualify for a tax credit if two-and-a-half percent of their workforce is based in Colorado. The bill would raise the threshold to 7%.
The Office of the State Auditor says 15 of the 18 insurers who qualified for the credit last year decreased their workforce in Colorado.
Democratic state Rep. Yara Zokaie says the current law rewards them for moving jobs out of state.
“We should not be giving special interest groups tax breaks while we have working families struggling to put food on the table. So this is taking a look at our tax code and seeing where do we have inefficiencies, where do we have loopholes. And we are cleaning that up so that we can better fund schools and Medicaid providers and food pantries,” Zokaie said.
Republican state Rep. Chris Richardson, who opposes the bill, says it is the second time in as many years that lawmakers want to change the rules.
“It leads to instability. It makes it hard for businesses to plan. In this environment, I wouldn’t look at expanding my business. And this may be why over the last 12 months in Colorado we had a zero percent net job growth,” Richardson said.
The bill would eliminate about $249 million in tax breaks for businesses over the next four years while increasing tax breaks for low-income seniors and child care centers by $176 million.
The House Finance Committee debate the bill but postponed a vote to consider amendments.
