All articles tagged with #income tax
Amendment 87 proposes replacing Colorado's flat 4.4% income tax with a graduated system, raising rates for high earners to fund public services while cutting taxes for most residents. The measure aims to address significant budget deficits, but faces opposition from business groups and the governor over economic impacts.
Washington State voters will decide in November whether to keep a new 9.9% income tax on individuals earning over $1 million, a measure expected to raise $3 billion annually. Critics argue the tax is an 'income tax' that could drive out wealthy residents and lead to broader taxation, while supporters call it a targeted 'millionaires tax' necessary to address fiscal shortfalls. Administrative complexities, including potential liabilities for nonresidents and cross-border issues with Oregon, have emerged as key concerns.
The Colorado Sun provides an online calculator to estimate how Initiative 195 would change tax bills under a proposed six-bracket graduated income tax (3.7% up to $25k; 4.2% to $100k; 4.4% to $500k; 7.4% to $750k; 7.9% to $1M; 8.4% above $1M), replacing Colorado’s flat 4.4% rate. It notes the estimates are based on federal taxable income, are for planning purposes, and that actual filings will vary, with higher earners potentially paying more and some lower earners paying less.
Colorado voters will decide on Initiative 195 to amend the state constitution and adopt a six-bracket graduated income tax that would raise rates on earnings above set thresholds (3.7% up to $25,000; 4.2% to $100,000; 4.4% to $500,000; 7.4% to $750,000; 7.9% to $1,000,000; 8.4% above $1,000,000), aiming to generate billions for education, healthcare and early childhood programs. Median households would see a small reduction to about 4.07% effective rate, while a $1.2 million earner could pay roughly $24,000 more annually. A competing measure, Initiative 232, would cap the rate at 4.4%; if both pass, the interaction may require court intervention. The ballot also features 12 other measures for November.
Missouri voters rejected Amendment 4 (requiring district-wide majorities for citizen-led constitutional changes) and Amendment 5 (phasing out the state income tax) by wide margins (roughly 80% and 82% opposed). Amendments 1 and 2 passed, preserving park funding via a sales tax and electing the Jackson County assessor. Gov. Kehoe endorsed the tax-cut plan, but voters backed preserving current tax and governance structures.
Missouri voters in the primary rejected Amendment No. 5 to abolish the state's personal income tax by an 84%-16% margin; supporters led by Gov. Mike Kehoe framed it as a generational opportunity, while opponents warned it would hit funding for schools, prisons and social services and likely require higher sales and other taxes to replace revenue.
Missouri voters will decide Amendment 5, which would eliminate the state income tax and require revenue replacement via expanded sales taxes within five years; supporters argue it could spur growth and simplify taxes, while opponents warn it would raise costs for low- and middle-income residents and seniors, with no exemptions defined yet and local tax rollbacks possible, along with ongoing questions about which items would be taxed and how the changes would be implemented.
Los Angeles County prosecutors charged comedian Carlos Mencia with 12 felonies for failing to report or pay taxes on about $8.7 million in earnings—six counts of personal income tax and six for corporate taxes—leaving him with a $300,000+ state tax bill; he was arrested at his Los Angeles home with bail set at $250,000 and faces more than 11 years in prison if convicted on all counts. The charges are the first under the district attorney’s new Business Tax Fraud Unit, and the IRS status was not disclosed.
Amazon founder Jeff Bezos argues US should exempt low earners from income tax, using a Queens nurse earning about $75,000 as the example of how the tax burden hits working families. He calls the 2026 US economy a 'tale of two economies' in a K-shaped recovery and questions the fairness of progressive taxation while noting California’s billionaire tax and his own wealth as context. He suggests reducing taxes on low earners could ease living costs and discusses universal basic income as a potential alternative, arguing that higher taxes on the wealthy wouldn’t directly solve everyday struggles for workers.
Missouri lawmakers are weighing a ballot measure to eliminate the state income tax, potentially paired with a sales tax expansion, a move supporters say would boost competitiveness and give residents more take-home pay; critics warn it could devastate public education funding and hit lower- and middle-income families hardest, citing Kansas' 2010s tax cuts that left a budget shortfall and districts cutting time and money for schools. The plan's supporters argue revenue growth could offset losses, but evidence from other states is mixed and opponents question whether a switch to higher sales taxes would really help the budget or residents.
Georgia Gov. Brian Kemp signed HB 463 and SB 33 to overhaul taxes: cutting the income tax rate to 4.99% for 2026 with a scheduled glide to 3.99%, raising standard deductions, expanding retirement exclusions, and easing overtime/tips taxation. SB 33 blocks local governments from opting out of a statewide homestead exemption and creates a 1% Local Homestead Option Sales Tax to fund property-tax relief. Republicans say the measures bolster affordability and job growth, while critics warn about potential revenue impacts for schools and services and note constitutional challenges; a correction clarifies how the homestead cap is calculated.
Washington’s Supreme Court denied a conservative group’s bid to put the state’s new 9.9% income tax on high earners to a referendum, effectively keeping the law in place. Opponents can still pursue an initiative to overturn the tax, but would face much higher signature thresholds (over 308,000) and deadlines. The law, which starts in 2028 for earnings above $1 million, won’t yield tax revenues until 2029, and a separate constitutional challenge filed by Citizen Action Defense Fund continues.
Former President Donald Trump floated eliminating the income tax, arguing that tariffs could provide enough revenue to fund the move, including a claimed trillion-dollar figure; experts warn the math and real-world impact of such a shift are unclear and would carry major economic and policy repercussions.
Missouri’s Senate approved a plan to replace the state personal income tax with an expanded sales tax that would apply to services and previously exempt goods, sending the measure toward a statewide ballot if the House concurs. The late-night 18-11 vote featured Democratic opposition and notable Republican dissent, with critics arguing the framework is vague and could jeopardize state finances, while supporters say it could spur growth and require future offsets in tax rates and local tax cuts.
Washington’s plan to tax incomes over $1 million at 9.9% starting in 2028 could erode Seattle’s long-standing free-agent advantage, but the Seahawks’ cap savvy and culture-first approach may keep things steady. The team could accelerate extensions for rookies like Jaxon Smith-Njigba and Devon Witherspoon to lock in core talent before tax implications bite, though most players already face taxes elsewhere and Seattle isn’t prone to chasing top-dollar free agents.