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Governor Jared Polis Leaves Colorado Lawmakers Confused with Mixed Messages on His Tax Policy

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During his recent State of the State address, Governor Jared Polis presented an ambitious agenda for massive government spending on public transit, education, job training, and crime fighting. However, he surprised many by emphatically calling once again for an income tax cut that would primarily benefit the upper middle class. This unexpected stance challenged the Democratic majority.

The Governor’s proposal highlights the confusion and division within the tax and spend Democrat Party. At the core of the debate is Colorado's tax system, which underwent a significant change in 1987 when the state legislature implemented a regressive flat tax, taxing all income at the same rate. This change was further solidified in 1992 with the passage of the Taxpayer Bill of Rights (TABOR) in the state constitution, making it necessary for voters to approve any return to a progressive income tax.

Governor Polis has previously expressed his desire to eliminate the Colorado income tax altogether, following the lead of nine other states.

In 2021, he even spoke at the conservative Steamboat Institute's Freedom Conference, where he received applause for suggesting that the income tax rate should be zero. Instead, he proposed replacing it with a tax on pollution or cigarettes.

However, it is important to note that personal income taxes contribute significantly to the Colorado General Fund, which covers essential areas like K-12 education, higher education, parks, the courts, and public health and safety. The Governor's belief in the "supply-side" or trickle-down economic theory, popularized during the Reagan era, suggests that lower income taxes will boost the economy.

Polis’ association with economist Arthur Laffer, a leading proponent of this theory, has spanned three decades, with Laffer serving on the boards of several of Polis' businesses.

Laffer gained prominence as an economist in the Reagan administration and was an economic advisor to Donald Trump's 2016 presidential campaign. In recognition of his contributions to economics, President Trump awarded Laffer the Presidential Medal of Freedom in 2019. Laffer's association with Polis, coupled with the Governor's history of paying minimal federal income taxes, has raised eyebrows and led to questions about his motivations.

Governor Polis' political stance is not easily defined. He possesses a libertarian inclination, which aligns with defending reproductive rights and supporting LGBTQ rights, as the first openly gay man elected governor, in an era of heightened attacks.

Additionally, he has been a vocal advocate for single-payer healthcare. Polis served as the U.S. congressman for Colorado's Second District from 2009 to 2019, and his voting record demonstrates a reliably blue stance, with an above-average appetite for bipartisan legislation, as noted by Alex Burness in The Colorado Independent.

“Despite a net worth estimated to be in the hundreds of millions, Polis paid nothing in federal income taxes in 2013, 2014 and 2015. From 2010 to 2018, his overall rate was just 8.2% — less than half of the 19% paid by a worker making $45,000 in 2018.”

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Governor Polis’ unpredictability and willingness to change his positions make him a complex figure. For instance, he initially opposed a ban on assault weapons after the Sandy Hook massacre but now supports gun control. These nuanced positions contribute to the confusion among lawmakers and constituents, as they seek clarity on the Governor's tax policy and broader political ideology.

As Colorado lawmakers grapple with the Governor's mixed messages, it remains to be seen how they will navigate the complexities of tax policy and address the concerns of different factions within the state. The debates surrounding tax reform and income inequality are likely to intensify as the 2024 legislative session continues.

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