Colorado Democrats’ Tax Tweaks Aren’t Compassion

Colorado Newsline ran a piece by Sara Wilson highlighting Colorado Democrats rolling out a “tax tweaks” package they say will protect working families after federal tax policy changes rippled into Colorado’s budget math. The article centers on a press conference at the Capitol featuring Lelia Hobley, a single mother of three, describing how a state-level child tax credit has helped her keep reliable transportation and a little “breathing room” in the budget.

Wilson explains the Legislature created the Family Affordability Tax Credit in 2024, but it only triggers if state revenue grows fast enough. That revenue growth is now threatened by federal tax changes passed last summer, meaning families like Hobley’s “cannot expect the credit for this year at least.” Democrats say the solution is to decouple Colorado’s tax code from the federal changes in H.R.1 and use the added revenue to fund a new family credit, though the article acknowledges it likely will not fully replace the existing credit.

The Bullet Point Brief

• Press conference politics, right on time. Blame Trump, promise a “fix,” and wheel out a relatable mom as Exhibit A. It is the Gold Dome’s favorite genre.
• The key line is the tell: when Congress passed H.R.1, Colorado revenue projections dipped by about $1.2 billion because Colorado’s tax code is tied to federal rules. Translation: federal taxes went down, and Colorado Democrats saw a revenue stream get smaller.
• Democrats say the goal is not to “fund tax cuts for people who don’t need them off the backs of people who do need them,” and they insist “people at the top” will be fine. In other words, class warfare with a podium microphone.
• The policy menu includes: HB 26-1221 limiting deductions tied to top executive salaries and reducing operating loss deductions; HB 26-1222 splitting from certain federal business breaks, including interest expense deductions; HB 26-1223 adding sales tax on downloadable software by removing an old exemption; plus a fourth cleanup bill sponsors claim is net-zero and shifts money toward other credits.
• The story even notes a prior “special session” was called to raise revenue and cut spending after the federal changes. Then, here we are again, back for the regular session, and the reflex is still: adjust the tax code so the state can capture more.

My Bottom Line

Press conferences. Colorado Gold Dome Democrats blame Trump. And promise a “fix.” Trot out a “victim.” Spark a little class warfare. Such performative B.S. We’ve all seen this act before.

Here is what the story actually means: Trump passes a tax cut, and you get to keep more of your money. Yay. But not “yay” in the eyes of the entitlement crowd under the Dome. They do not see it as your money. They see it as their “revenue.” And when their revenue dips, they treat it like an emergency. So they decouple, tweak, and “reform” until the money flows back to Denver.

If they truly wanted to save the program that helps the working mom they rolled out in front of the cameras, there is a radical concept called governing. Cut expenses elsewhere. Set priorities. Get spending under control. But that is hard work, and hard work does not fit neatly into a press conference soundbite.

So instead, they blame Trump and come after businesses and consumers through the tax code, then pretend it is compassion. Meanwhile, the people trying to create jobs get told they are the villain, and the Great Suburban Normie gets asked to clap politely while the bill quietly lands in their lap.

Source: Colorado Newsline