{"id":2479076,"date":"2025-08-26T14:11:02","date_gmt":"2025-08-26T18:11:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/colorado-lawmakers-to-address-budget-shortfall-with-corporate-tax-policy-changes\/"},"modified":"2025-08-26T14:15:00","modified_gmt":"2025-08-26T18:15:00","slug":"colorado-lawmakers-to-address-budget-shortfall-with-corporate-tax-policy-changes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/colorado-lawmakers-to-address-budget-shortfall-with-corporate-tax-policy-changes\/","title":{"rendered":"Colorado lawmakers to address budget shortfall with corporate tax policy changes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcolorado-lawmakers-to-address-budget-shortfall-with-corporate-tax-policy-changes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2479076&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Colorado state lawmakers are addressing a $750 million budget shortfall partly caused by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/treasury-says-u-s-will-hit-the-debt-limit-as-early-as-june-1st\/\" title=\"Treasury says U.S. will hit the debt limit \u2018as early as June 1st\u2019\">recent federal tax<\/a> changes by modifying the state&#8217;s business tax policies. In a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/update-letter-by-ted-cruz-and-6-gop-senators-and-4-senators-elect-sign-letter-to-reject-election-call-for-election-commission-10-day-emergency-audit-takes-place\/\" title=\"UPDATE: Letter by Ted Cruz and 6 GOP Senators and 4 Senators-Elect Sign Letter to Reject Election \u2013 Call For Election Commission 10-Day Emergency Audit Takes Place\">special legislative session<\/a>, the Democratic-led assembly passed five bills aimed at adjusting <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-and-democrats-announce-600-billion-plan-for-child-tax-credit-and-key-business-breaks\/\" title=\"GOP and Democrats propose 0B plan for child ... credit and business breaks\">business tax deductions<\/a> and credits, expected to generate about $244 million in new revenue. Key measures include selling tax credits to insurance companies and corporations,which will yield $100 million immediately but cost the state $125 million over the next decade; reinstating two business deductions on federal tax returns for an estimated $73.5 million; removing a tax deduction previously given to insurance companies designed to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kari-lake-lets-talk-turkey-bidenomics-is-a-dud\/\" title=\"Kari Lake: Bidenomics Fails\">encourage job growth<\/a>, adding $44 million; and eliminating an allowance enabling businesses to retain part of collected state sales tax, generating $26 million in revenue. These changes cover a significant portion of the deficit, with the remainder anticipated to be addressed via reserve funds and spending cuts. The shortfall results from the &#8220;One Big Beautiful Bill Act,&#8221; a federal tax law signed by President Trump in 2017 (noted as July in the text), which altered the tax code that Colorado follows at the state level, thus reducing tax collections. <br \/> <!DOCTYPE html><br \/>\n<?xml encoding=\"utf-8\" ?><html><body><\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Colorado lawmakers to address budget shortfall with corporate tax policy changes<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2213065\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/colorado\/\" target=\"_blank\" rel=\"noreferrer noopener\">Colorado<\/a> state legislators plan to address part of their $750 million budget gap caused by federal tax changes by changing the state&rsquo;s business tax policy.<\/p>\n<p>In a special session, lawmakers said the new changes will generate approximately $244 million in new revenue. The Democratic-controlled legislature this week passed five bills aimed at business tax deductions and credits in an effort to close some of the gap.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/3782192\/indiana-voters-mid-decade-redistricting-white-house-pressure\/\">Majority of Indiana voters oppose mid-decade redistricting as White House increases pressure campaign<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/politics\/3781876\/adams-cuomo-riley-gaines-mamdani-bench-press\/\">Rivals Adams, Cuomo, and Riley Gaines roast Zohran Mamdani over bench press fail<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/3781140\/dnc-iowa-state-senate-candidate-catelin-drey-gop-supermajority\/\">DNC bolsters Iowa state Senate candidate Catelin Drey to break GOP supermajority<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>Democratic lawmakers said the cuts were made as part of an agreement with Gov. Jared Polis (D-CO).<\/p>\n<p>The largest source of revenue will come from selling tax credits by allowing insurance companies and other corporations to prepay taxes in exchange for future financial benefits. The measure is estimated to generate $100 million immediately but will cost Colorado $125 million over the next decade.<\/p>\n<p>The state will additionally add back two business deductions on federal tax returns, which is estimated to generate an additional $73.5 million in state tax revenue.<\/p>\n<p>Insurance companies will lose a <a href=\"https:\/\/amzn.to\/3YuVZYV\" >tax deduction rate originally established<\/a> to encourage job growth. This is estimated to generate another $44 million in state tax revenue.<\/p>\n<p>Lawmakers also eliminated a provision that allowed businesses to keep a portion of state sales tax dollars for collecting the sales tax, which is estimated to generate&nbsp; $26 million in state tax revenue.<\/p>\n<p>In total, these tax changes are estimated to generate $243.9 million of the state&rsquo;s $750 million gap.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/presidential\/3464666\/where-2028-presidential-contenders-visit-early-primary-states\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>HERE&rsquo;S WHERE POSSIBLE 2028 PRESIDENTIAL CONTENDERS ARE GOING AS THEY VISIT EARLY PRIMARY STATES<\/strong><\/a><\/p>\n<p>The deficit was caused by tax policy changes from the One Big Beautiful Bill Act, the Republican federal tax and spending measure signed into law by President Donald Trump in July. Colorado uses the federal tax code as its state tax code, so the law will leave the state with a large drop in tax collections.<\/p>\n<p>The remainder of the budget shortfall is expected to be addressed through reserve funds and funding cuts.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script> <\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Colorado lawmakers plan corporate tax changes to close budget gap<\/p>\n","protected":false},"author":2910,"featured_media":2479077,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/08\/AP24310627856322.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[51198,6024,51036,3673,37868],"class_list":["post-2479076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-budget-shortfall","tag-colorado","tag-corporate-tax","tag-lawmakers","tag-policy-changes"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/08\/AP24310627856322.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2479076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2910"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2479076"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2479076\/revisions"}],"predecessor-version":[{"id":2479080,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2479076\/revisions\/2479080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2479077"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2479076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2479076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2479076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}