This week the Chamber and its affiliate, the Metro Denver Economic Development Corporation, voiced their opposition to House Bill 1275, which would require Colorado companies to pay state taxes for any foreign affiliates that are incorporated in tax haven jurisdictions. While bill supporters estimate this would return $150 million in income to the state, Chamber Executive Vice President and Metro Denver EDC CEO Tom Clark cautions against the move, noting that the bill does not calculate the impact of companies that may leave or downsize in Colorado as a result.
Clark will testify in opposition to the bill in front of the House Finance Committee this afternoon. Colorado has seen this kind of income tax system before, Clark said, and when it was in place in the 1980s it was ineffective in generating any significant amount of revenue. Instead, he said, it kept major companies from locating headquarters in Colorado.
Similar changes to corporate income tax have impacted other states—many to Colorado’s benefit, Clark said, pointing to California. Since 2012, Colorado has attracted nearly 10,000 jobs from the Golden State.
“Returning Colorado’s income-tax system to one we had in the 1980s—a system that encouraged companies to leave or pass over Colorado when seeking a new headquarters location—would only hurt our economy,” Chamber President and CEO Kelly Brough said in a statement. “House Bill 1275 stands to undo the great strides our state has made economically by targeting companies that do work internationally.”
Click here to see Clark’s full testimony and testimony from other Chamber staff on bills this legislative session.
Chamber Defeats Key Transportation Bill
The Chamber continues to defend policies that innovate or reform key areas that impact the economy, such as education and infrastructure. The Chamber was pleased this week to see Senate Bill 11, which would end the use of FASTER fee revenue for transit-related projects, die in the House Transportation and Energy Committee. FASTER generates key funding for transit projects across the state, and the Chamber is committed to examining all funding options to move goods and people across the state efficiently.
The Chamber is taking positions on bills weekly during the legislative session. Click here to see all the bills the Chamber has taken positions on this session.