Colorado Penalizes Marriage in New Tax Bill
November 26, 2022 | Colorado
On Nov. 8, Coloradans overwhelmingly voted “yes” on Proposition FF, which expands its universal free school meals program by limiting deductions on earners making over $300,000. And by doing so, Colorado voters also voted to penalize marriage.
According to the nation’s leading independent tax policy nonprofit, Tax Foundation, when Colorado passed Proposition FF or the Healthy School Meals for All ballot measure, it created a “tax cliff” that penalizes married high earners. It is the first time Colorado has adopted such a penalty.
Colorado Adopts Marriage Penalty
Beginning in 2023, Proposition FF limits state income tax deductions to $12,000 for single filers or $16,000 for joint filers and applies to standard or itemized deductions. That limit applies to any household making more than $300,000 per year without a higher tax bracket for marriage.
As such, if an individual makes $299,999, they’ll be able to claim total itemized deductions. But, if two individuals making $150,000 each marry, their deductions will be limited under Colorado’s new law. It also means if a couple previously claimed $50,000 in itemized deductions, their state taxes will increase by $1,547 under the measure.
Proposition FF’s passage is expected to generate an additional $100.7 million in state income tax revenue in 2023, the first year the tax measure takes effect… (Excerpt from The Epoch Times)
