The Denver Gazette reports on a new lawsuit targeting a 2025 Colorado law (HB25-1296) that classifies overtime pay as taxable income under state law. Why is that a problem? Because the folks who filed the lawsuit, including Scott Sheet–approved warriors like Barb Kirkmeyer and Kevin Grantham, argue that this sneaky tax tweak violates Colorado’s Taxpayer’s Bill of Rights, or TABOR. And if you care about keeping more of your paycheck instead of funding some Boulder nonprofit’s interpretive dance curriculum, you should be paying attention.
The Bullet Point Brief
- The overtime tax trap: Under the new law, workers’ overtime earnings are fully taxable under Colorado income tax, even if they’re exempt federally. That’s a surprise bill for working-class Coloradans.
- Lawsuit launched: GOP legislators and working-class plaintiffs say this is a clear violation of TABOR, which requires voter approval for any tax increase. Spoiler: the voters were never asked.
- TABOR under siege (again): This isn’t the first attempt by Colorado Democrats to chip away at TABOR; it’s just the latest in a long line of legislative side-door tricks.
- Real people, real pain: The plaintiffs include blue-collar workers who aren’t political pawns; they’re Coloradans watching their hard-earned OT get taxed into oblivion.
- Here comes the spin: The state says it’s not a new tax, just an “interpretation” of current law. Uh huh. And my lawn is just “reinterpreting” itself into a rock garden.
My Bottom Line
GOOD ON my friends Barb and Kevin for stepping into the legal ring and swinging on behalf of working Coloradans. This lawsuit isn’t just about payroll math, it’s about principle. Colorado’s Taxpayer’s Bill of Rights is the only thing standing between you and full-frontal Californication, and if we let the legislature keep nibbling at it, pretty soon it’ll be nothing but a cautionary tale.
Let’s be real: this “overtime tax” law is the kind of bureaucratic sleight-of-hand that makes normal people hate politics. You work extra hours, you expect a bigger paycheck. That’s the deal. But under this law, your time-and-a-half turns into tax-and-a-half. It’s the state using your grind to grease their bloated machinery, all without asking the voters for permission.
And that’s the smoking gun. TABOR exists precisely to stop this kind of maneuvering. If you want to raise taxes, ask the voters. If you think your new revenue scheme is such a winner, sell it to the people. But of course, they didn’t, because they knew it wouldn’t pass. So they jammed it through under the radar, slapped a nice-sounding title on it, and hoped nobody would notice.
Well, we noticed.
Barb and Kevin noticed.
And now the court will notice, too.
Let’s be clear: this law doesn’t soak the rich. It soaks the exact kind of working-class Coloradans Democrats claim to represent, folks punching clocks, racking up hours, and trying to build a better life. Meanwhile, the Capitol class gets to pat themselves on the back for being so clever with their “interpretations” while regular people get hosed.
The solution? Defend TABOR at all costs. Because once it’s gone, so is any pretense that Colorado’s government gives a damn what voters think. This law is unconstitutional, it’s unconscionable, and it’s exactly the kind of bureaucratic overreach that has working folks packing for Wyoming.
You want to keep Colorado livable? Start by letting working people keep their damn overtime.
