surplus

For six years Colorado has not issued an earned income tax credit, or EITC, to those who meet the federal threshold for the credit. The state ties its EITC to a TABOR revenue surplus, so when times are tough for the state, working families also feel the squeeze. Now that the Taxpayer's Bill of Rights is on hold and Referendum C is in play, tax credits are not being given because doing so would reduce the revenue base on which future budgets will be derived.

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Colorado should increase its Child Care Tax Credit, and it should make the credit available in all years, not just when there is a TABOR surplus. It also should extend the credit to families with disabled dependents of any age. Families should be able to claim the full credit amount at the state level even if they don???t have a federal tax liability.

Colorado should increase its Child Care Tax Credit, and it should make the credit available in all years, not just when there is a TABOR surplus. It also should extend the credit to families with disabled dependents of any age. To improve child care quality, the state should work with counties to pay market rates to child care providers and offer incentives to those who participate in quality initiatives.

Colorado should increase its EITC from 10 percent to at least 20 percent of the federal credit. And it should make the credit available in all years, not just when there is a TABOR surplus.