Colorado Working Families Could Face $1,600 Hit Under Proposed Federal Tax Bill

Colorado's most vulnerable families could see their household budgets shrink by approximately $1,600 annually under a new Republican tax bill, while the state's highest earners would receive an average $12,000 boost, according to analysis released Thursday by the Congressional Budget Office.

For Colorado's middle-income households, including many military families around Colorado Springs and working professionals in the Denver metro area, the legislation would provide a modest increase of $500-1,000 per year. However, the impact on lower-income Coloradans could be severe due to proposed cuts to critical support programs.

Impact on Colorado Communities

The bill's proposed changes would affect thousands of Colorado families who rely on essential programs, including:

• Cuts to Medicaid coverage for Colorado residents
• Reductions in SNAP food assistance for struggling families
• New 80-hour monthly work requirements for able-bodied adults without dependents
• Temporary tax breaks on overtime pay and vehicle loans

For Colorado's mountain and rural communities, where seasonal work is common and access to full-time employment can be limited, the new work requirements could pose particular challenges for residents seeking assistance.

Mixed Economic Outlook

"This would be one of the largest transfers of wealth from working families to the ultra-rich in American history. It's shameful," said Democratic Rep. Brendan Boyle, who requested the CBO analysis.

"This would be one of the largest transfers of wealth from working families to the ultra-rich in American history. It's shameful," said Democratic Rep. Brendan Boyle, who requested the CBO analysis.

However, Republican supporters, including Idaho Sen. Mike Crapo, defend the measure:

"The legislation recognizes that extending proven tax reform is critical for working families,"

"The legislation recognizes that extending proven tax reform is critical for working families,"

Silver Linings for Colorado Seniors

The bill does include some positive provisions for Colorado's senior population, including a $4,000 increase in the standard deduction for seniors. This could provide meaningful relief for retired Coloradans living on fixed incomes, particularly in communities like Colorado Springs and Boulder where living costs continue to rise.

As Colorado families and businesses weigh the potential impact of these changes, many local financial advisors recommend consulting tax professionals to understand how the proposed legislation could affect their specific situation. The bill's progression through Congress will be closely watched by Colorado residents across the economic spectrum.

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