The Secret Ties Between Polis and the Conservative Economist
Tonight’s upcoming debate on Proposition HH is sure to be a heated one. Opponents of the measure are questioning why renowned conservative economist Arthur Laffer would support a massive tax hike that expands the Colorado government by billions of dollars.
And not for nothing, viewers may also wonder why Governor Jared Polis would choose a non-Coloradan and architect of the failed economic plans from the 1970s and 1980s as his debate partner.
The answer may lie in the decades-long financial ties between Laffer and the Polis family.
Laffer, who has decades of very extensive financial ties to the Governor and his parents, was tireless in his advocacy of Referendum CC in 2019 which was soundly rejected by Coloradans by a vote of 54 percent to 46 percent.
Laffer's close friendship with Polis' parents, starting when Polis was just 13 years old, has resulted in lucrative business deals and investments together. In fact, Laffer is currently a board member of the Schutz-Polis "family office" that helps the Governor reduce his tax liability. This financial relationship clearly outweighs any objective analysis Laffer could provide on Proposition HH.
But this is not the first time Polis has steered Laffer into supporting a tax increase.
In 2019, Laffer endorsed and argued for Referendum CC, which would have given the government a multi-billion-dollar blank check by redirecting TABOR taxpayer refunds back to state government. The measure was soundly rejected by Coloradans.
Now, Proposition HH is being touted as property tax relief, but a closer look reveals the truth.
While it promises a minuscule property tax decrease of .06 percent, it will actually result in the largest one-year property tax increase in state history. Colorado's Common Sense Institute has analyzed the proposition and found that it will generate an additional $21 billion in revenue for the state by 2040. This is not the pro-growth, supply-side economics that Laffer advocates for.
TAXES ARE NEGATIVE IN NATURE: “We tax speeders to stop speeding, we tax alcohol to stop drinking, and we tax smokers to stop smoking. Thus, a low rate is necessary to provide people with the least incentives to avoid, evade, or otherwise not report taxable income; a broad tax base is necessary to provide taxpayers with the least number of places where they can put their money to not have to pay taxes.” (The Laffer Center)
In fact, Proposition HH goes against Laffer's own Five Pillars of Prosperity, which includes restraint on taxation and government spending. But despite this, Polis rejected an alternative plan that would have provided real tax relief, choosing instead to target tax refunds and pour billions more into state government.
Proposition HH is not a genuine effort to provide property tax relief but rather a ploy to expand government revenue. And it was crafted in secret during the last hours of the legislative session and then rushed through the Legislature. This is not the transparency that Laffer praised Polis for in the past.
Then-President Donald Trump talks with economist Arthur Laffer after awarding him the Presidential Medal of Freedom in 2019. (Associated Press)
In the end, it is difficult to understand why Dr. Laffer continues to support Proposition HH, given his decades-long advocacy for limited government, tax relief, and job growth in the private sector. But his financial ties to the Polis family may provide the answer.
Tune in to tonight's debate on Proposition HH to see how Laffer and Polis defend their questionable alliance and misleading ballot measure.
The proposal, which would divert funds from the Taxpayer's Bill of Rights to provide property tax relief and boost education funding, has been a hotly contested issue leading up to the November election.
Colorado Governor Jared Polis, economist Arthur Laffer, Colorado House Assistant Minority Leader Rose Pugliese, and Michael Fields of Advance Colorado.
During tonight’s debate on one side will be Governor Polis and Arthur Laffer but they will face fierce opposition from Representative Rose Pugliese, the assistant minority leader in the House, and Michael Fields, of Advance Colorado Action, who believe that diverting TABOR dollars is a dangerous move that will only lead to more government spending and higher taxes for hardworking Coloradoans.
Colorado Politics, The Denver Gazette, and 9News have joined forces to host this highly anticipated debate, which is sure to be a showdown of epic proportions. With the future of TABOR dollars at stake, both sides are pulling out all the stops to convince voters that their stance is the right one.
In the end, it is difficult to understand why Dr. Laffer continues to support Proposition HH, given his decades-long advocacy for limited government, tax relief, and job growth in the private sector. But his financial ties to the Polis family may provide the answer.
Tune in to tonight's debate on Proposition HH to see how Laffer and Polis defend their questionable alliance and misleading ballot measure.
Stream it HERE at 7pm tonight!
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