The $1.5 trillion federal tax-cut bill awaiting President Donald Trump’s signature will cause a de facto state tax hike for some Coloradans, state budget forecasters said Wednesday, news that could be viewed as an unexpected Christmas gift for state budget writers — and a lump of coalfor those who will foot the bill.
The seemingly contradictory result could generate between $196 million and $340 million next fiscal year, an unexpected windfall that immediately raised hopes for more transportation funding in the 2018-19 state budget.
Aside from the tax bill fallout, the two quarterly revenue forecasts released Wednesday by the Colorado Legislative Council and Gov. John Hickenlooper’s office were largely in line with the most recent forecasts. Both forecasts, released in September, expect the Colorado economy to continue growing steadily, albeit at a slow pace, due to the state’s tight labor market and already low unemployment rate.