The Colorado House Finance Committee will be meeting today @ 1:30 p.m. in the Legislative Services Building (LSB-A) to vote on several bills that would eliminate some current tax exemptions. During this current recession Coloradoans are already feeling the pinch of a tough economy. Increasing taxes on everyone seems a bit counter intuitive when we have people having a hard enough time buying food and paying rent.
One of the bills that will come before the Finance committee is HB-1189 which will propose elimination of a tax exemption for direct mailers ads. This will directly affect the advertising business and any business that relies on ad mailers for revenue. This is a direct tax on business which will only burden the economy.
HB -1190 is proposing temporarily eliminating the sales tax exemption on storage, use or consumption of electricity, fuel and other energy products used for industrial purposes beginning March 1, 2010 and ending June 30th 2012. While the tax exemption is only being proposed to be lifted for two years, it couldn't come at a worse time. This is another attempt at putting more financial burdens directly onto industrial businesses at exactly the time we need to be finding ways for businesses to save money, so they can save jobs.
Currently there is a sales tax exemption on candy and soft drinks, but HB -1191 wants to eliminate that sales tax exemption causing price increases for those of us with a sweet tooth. Do you use a vending machine for a snack or a soda during your work day? Well be prepared to pay more if this bill becomes law.
HB - 1192 seeks to eliminate the sales tax exemption on some "standardized software" for computers. This looks like it might be far more reaching than meets the eye since almost all electronics run on some sort of "standardized software". Again increasing taxes on goods that are already tuff for most of us buy seems like sure way to slow sales and business growth.
Want an internet tax? Well you got it with HB - 1193, a bill that will require out of state retailers to collect sales tax on Coloradans purchases, including purchase made on the web. It doesn't take a PhD in economics to realize that increasing sales taxes now would slow overall sales across the board. We need to be finding ways to increase sales and business revenues, which in turn create jobs, not kill them.
Do you like napkins with meals at restaurants? Well be prepared to pay more for your meals with HB 1194 which will eliminates sales tax exemption on non-essential items such as plastic ware, condiments, napkins, bags and other items that allow food establishments to keep their prices low and pass those saving onto their customers. If this bill is allowed to pass then we might as well call it a direct tax on food, or better yet the Napkiin tax.
Colorado farmers and ranchers are in possible trouble of having tax exemptions lifted as well with HB - 1195 that would suspend sales tax exemptions on products used to care for livestock and crops. That would be an increase on Colorado’s food production industry at the most basic level. Farmers and Ranchers make their livings on the slimmest of margins and any increase could wind up be a disaster when profits are so hard to come by.
HB -1198 will suspend the Alternative Minimum Tax credit. HB -1199 – proposes to reduce corporation’s net operating loss carryover to $250,000, which currently has no annual limit. Why put more restrictions on businesses already operating a loss? This could wind up be a job killing bill, in a time when we need job creating bills.
In the midst of this recession, Colorado’s House Finance Committee is considering increasing taxes on food, consumer purchases and software, energy, advertising and corporate taxes. This is no time to be burdening the citizens of Colorado with more taxes, raising the cost of doing business and putting more stress on consumers.
There are 11 members on this committee, let them know what you think about the proposed tax changes.
Rep. Joel Judd (D) 303-866-2925, chair
Rep. Debbie Benefield (D) 303-866-2950, vice chair
Rep. Jerry Frangas (D) 303-866-2954
Rep. Cheri Gerou (R) 303-866-2582
Rep. Daniel Kagan (D) 303-866-2921
Rep. John Kefalas (D) 303-866-4569
Rep. Jeanne Labuda (D) 303-866-2966
Rep. Ellen Roberts (R) 303-866-2914
Rep. Ken Summers (R) 303-866-2927
Rep. Spencer Swalm (R) 303-866-5510
Rep. Brian Delgrosso (R) 303-866-2947
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