Colorado Democrats have introduced several bills to tackle a massive budget deficit caused by GOP-backed corporate tax cuts. According to Colorado House Democrats, the proposals aim to close corporate tax loopholes and safeguard essential services for residents.
Speaker Julie McCluskie criticized the “big ugly budget” from Trump and Washington Republicans, blaming it for creating a billion-dollar shortfall. She said Democrats plan to address the gap through a balanced approach that includes closing tax loopholes, cutting some spending, and using the state’s rainy-day funds.
Senate President James Coleman pointed out that the GOP’s federal budget granted a billion dollars in corporate tax breaks while driving up everyday costs, including health care, energy, and groceries. “Coloradans cannot afford the impacts of the GOP budget, which is why we’re back at the Capitol,” Coleman said, stressing the need to protect families and public services while maximizing every dollar.
House Majority Leader Monica Duran highlighted that nearly 80 percent of tax breaks from Trump’s bill benefit corporations, urging lawmakers to act quickly to close loopholes and protect funding for education, health care, and public safety.
One proposal, HB25B-1003, targets a special tax break for insurance companies claiming to have a regional home office in Colorado. A March 2025 audit revealed the credit failed to create jobs as intended and is linked to layoffs by companies still receiving the benefit, according to Colorado House Democrats.
Similarly, HB25B-1002 focuses on offshore accounts and foreign tax havens, expanding the list of countries under scrutiny. Another measure, HB25B-1004, would allow businesses to prepay taxes by purchasing future tax credits at auction, giving companies a discount while boosting state revenue.
On the services front, SB25B-002 seeks to restore Medicaid recipients’ access to Planned Parenthood after a federal removal and restraining order disrupted care, according to the Colorado House Democrats report.
SB25B-003 proposes amending a ballot measure so funding for the Healthy School Meals for All program can also support the state’s Supplemental Nutrition Assistance Program (SNAP), which faces GOP-driven budget cuts. Finally, SB25B-001 would refine spending reduction procedures, balancing executive power with legislative oversight during revenue shortfalls.
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Katie is a senior who has been on staff for three years. Her favorite type of stories to write is reviews and features. Katie’s favorite ice cream flavor is strawberry.
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