Democrats face growing opposition to their proposed tax increases as business interests line up alongside Republican leaders to fight the tax hikes.
“Raising taxes on hard working families and businesses during a recession is not the way to get our state back on track,” said Sen. Nancy Spence, R-Centennial.
The Denver Metro Chamber of Commerce and two business coalitions sent a letter to Democrat Gov. Bill Ritter and legislative leaders saying they are “gravely concerned” about the tax increases offered by the Governor. The letter said the tax increases “will have a direct, real and sizable impact on Coloradans through job loss and stymied economic growth.”
Ritter has proposed $131.8 million of tax increases--seven of which have been fast tracked--to help shore up the state’s budget deficit. Among the proposed tax increases are candy, soda, online sales and energy use. The tax hikes were introduced in the House on Friday.
The letter acknowledges the need for a “shared sacrifice” to balance the state’s multi-billion dollar budget shortfall, but it cautions Democrats not to saddle employers and employees with a disproportionate burden. The letter also notes that 82 percent of Ritter’s budget proposal is financed by one-time funding sources thus “ensuring these debates will continue for a number of years.”
“It’s time for government to make the same sacrifices that businesses and families have been making for the last two years,” said Senate Minority Leader Josh Penry, R-Grand Junction. “It’s time to tighten our belts and prioritize spending.”
For his part, Penry is running a bill to reduce the size and scope of government. It includes proposals to scale back the bureaucracy by implementing a real hiring freeze, consolidating boards and commissions, and eliminating the Colorado Commission of Higher Education and transfer those responsibilities to the Lieutenant Governor.