More stimulus checks may be forthcoming, but they will not come from the federal government. Governor Jared Polis of Colorado recently unveiled legislation to provide a payout to all qualifying residents. The stimulus funds will be distributed as a cashback rebate. The beneficiaries of these Colorado stimulus checks will get $400.
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Who Will Get the Colorado Stimulus Checks?
On Monday, the Colorado Cashback scheme was proposed by Governor Polis and the state legislature. Eligible Colorado residents will get $400 stimulus cheques this summer as part of the program. Full-time residents will qualify for the rebate, which is expected to benefit 3.1 million Coloradans.
Eligible residents will receive tax rebate payments after filing their state tax forms for 2021 by May 31. Single taxpayers will receive $400, while joint filers will receive $800. All eligible beneficiaries will receive the “rebate directly in the mail in August or September,” according to Polis’ office.
Governor Polis cites ‘inflationary and cost-of-living implications’ as justifications for the Colorado stimulus payments. With inflation at an all-time high, this cashback refund might benefit residents. According to a recent Labor Department report, inflation climbed by 8.5 percent in March compared to the same month, the most significant increase in over 40 years.
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‘Rather than the government holding on to money earned by Coloradans, we want to give everyone cash as soon as possible to provide immediate relief and enable people to do whatever they choose with their money,’ Governor Polis said in a statement.
Is TABOR Better Than Colorado Cashback Program?
Though the Colorado Cashback program is not what most Democratic lawmakers wanted, it may be more beneficial to the poor than the present TABOR (Taxpayer’s Bill of Rights)-mandated return program. During significant economic growth, TABOR requires the Colorado government to restore a portion of state revenue to taxpayers.
Currently, the state is returning roughly $525 million, which is all of the money that exceeds TABOR’s ceiling. TABOR sets a limit on government expenditure based on the amount of revenue minus inflation plus population growth.
TABOR refund money is distributed in three ways to taxpayers: a temporary reduction in the flat income tax rate; property tax relief for senior and veteran homeowners; and sales tax rebates distributed in a six-tiered structure.
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Polis’ Colorado Cashback program would take around $1.4 billion out of the estimated $2 billion rebates. Two TABOR return methods, including a temporary income tax decrease and property tax relief, would be unaffected by this program.
The remaining money would be refunded to taxpayers via the existing six-tier system following the $1.4 billion payback program and the two TABOR new refund methods.
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