Guest Commentary published in the Coloradoan
By Sen. Kevin Lundberg
Every year hundreds of bills are passed by the Colorado General Assembly and not given a second thought. That was not the case with last year's major car tax, dubbed FASTER, which raised taxes by $250 million annually and increased vehicle registration fees by an average of $36 per car.
This tax hits hardest on those who can least afford to pay it. Coloradans were stunned by the increase, especially the punitive $100 late fee.
When the car tax was first implemented this summer, people were so upset by the change in policy that some counties hired armed guards to provide security for Motor Vehicle Department offices. Prior to FASTER, counties had the option of assessing a $10 fee for late registration.
Despite the crushing recession, the car tax was not the only tax hike passed by Democrats last year. Democrats levied $1 billion in new taxes and fees on Colorado families, including a $90 million property tax increase on seniors, a $30 million tax hike on small businesses, a new half-billion dollar tax on the state's hospitals and a $40 million tax increase on capital.
Failing to understand that tax hikes are not the best way to stimulate the economy, Democrats have proposed millions more in tax increases for 2010. Republicans, on the other hand, believe the best approach to economic recovery is to prioritize and reduce government spending.
In 2009, the car tax was pitched to the public as a last resort to fix Colorado's roads and 125 structurally deficient bridges. At the start of 2010, seven months after the measure went into effect, all 125 bridges remain in disarray. Revenue generated by the car tax has not yet resulted in the repair of a single bridge.
When debating the car tax last year, Democrats ignored the hundreds of millions of transportation dollars that were supposed to be generated by Referendum C, a 2005 ballot measure that was sold as a way to repair crumbling roads and fund higher education.
After misleading voters about Ref. C, the car tax merely added insult to injury. Democrats couldn't even wait for Ref. C to expire before swindling taxpayers out of more money under the guise of another transportation crisis.
Clearly the problem is not funding; it is priorities. Democrats have been on a spending binge since gaining unfettered power in 2006 and have largely ignored Colorado's transportation needs.
As Colorado families have had to tighten their belts, so too should government. It was wrong of the Democratic majority to raise taxes and fees by $1 billion during the midst of the worst recession in decades. That is why my first bill aims to, at least partially, right that wrong by repealing portions of the car tax, starting with the $100 late fee.
I am also proposing an educational tax credit bill, which will give parents more freedom to choose the best school for their children and save the state millions of dollars during a time when its need is greatest. Another cost savings measure I am proposing will reform Medicaid by giving seniors more choices for meeting their medical needs and potentially save the state millions of dollars.
Our deficit can be fixed by coupling the proper reforms with prioritized spending. Tax hikes are not the solution to Colorado's budget crisis.
Kevin Lundberg represents Senate District 15 in the Colorado Legislature.