Sponsors: Sen. Michael Merrifield (D-Colorado Springs)
Status: Introduced and assigned to the Senate Finance committee on Jan. 26. The Finance Committee killed the bill on March 5.
What the bill would have done: This bill restricts taxpayers who earn more than $250,000/year from deducting any contributions they make to qualified state college savings plans, something they can currently do. According to the bill's fiscal note, those taxpayers claimed over $114 million in deductions in 2011, more than any other earning group. In addition, the bill would expand the deduction for people earning up to $75,000 annually to 200 percent of their contributions.
How it would have affected your refund: As currently written, this bill would increase the amount of money in the state's general fund. But in doing so, it changes current tax policy, which is something that voters must approve.
What's being said about this bill:
The increased deduction for families making under $250,000 per year will both increase their current savings and encourage them to save more money for their children’s future. This is how the money is reinvested in the middle class.
(From an explanation by the Colorado Fiscal Institute.)
You want to know what is really going on these days, especially in Colorado. We can help you keep up. The Lookout is a free, daily email newsletter with news and happenings from all over Colorado. Sign up here and we will see you in the morning!