As Coloradans prepare to deck the halls this holiday season, a new report from Rocky Mountain Values and the Colorado Fiscal Institute, Continuing 45 Years of Inequitable Tax Policy: Colorado Impacts, reveals how the 2017 Tax Cuts and Jobs Act (TCJA) left hardworking families out in the cold while gifting the wealthiest and corporations a shiny, oversized tax break.
This holiday season, while families are stretching their budgets for gifts, meals, and celebrations, the report shows how inequitable tax policies continue to make life harder for middle-class Coloradans. And now, proposals like Project 2025 could leave even more families singing the holiday blues.
“Coloradans deserve a system that delivers holiday cheer—not policies that take from working families to pad the pockets of the wealthy,” said Caroline Nutter, Legislative Coordinator at the Colorado Fiscal Institute. “The TCJA turned out to be a stocking full of broken promises for middle-class families, and Project 2025 threatens to be the ghost of Christmas future if we don’t act now.”
Trump’s 2017 Tax Law: A Holiday Gift for the Wealthy
Wealthy Got the Biggest Gifts: The wealthiest 5% of Coloradans received more than half of the tax benefits from the TCJA, while the bottom 40% received just 5%. Millionaires got a nearly $3,000 annual tax break—enough to stuff Santa’s sleigh—while households earning $34,000 got just $255, barely enough for a modest holiday dinner.
Corporate Christmas Came Early: Corporations enjoyed a holiday windfall with the corporate tax rate slashed from 35% to 21%, allowing the nation’s largest companies to avoid nearly $250 billion in taxes since 2018. Meanwhile, families saw cuts to critical programs they rely on year-round.
Bah Humbug for Social Safety Nets: To pay for its $1.5 trillion price tag, the TCJA slashed investments in Medicaid, SNAP, and other vital programs, leaving rural Colorado communities to shoulder the burden.
Project 2025: A Lump of Coal for Colorado Families
With the Trump Tax Law’s individual provisions set to expire soon, new conservative proposals like Project 2025 promise more inequities disguised as holiday “cheer”:
Middle-Class Families on the Naughty List: Project 2025 proposes just two tax brackets—15% and 30%—that would cut rates for the wealthiest but raise taxes for median earners in Colorado. A single filer earning $46,000 could pay $1,000 more annually—money that could have gone toward holiday gifts or keeping the lights on during the cold Colorado winter.
The Rich Stay Jolly: By reducing the capital gains tax from 20% to 15%, Project 2025 would grant millionaires the bulk of the benefits while leaving everyday families empty-handed. Millionaires make up only 2% of capital gains taxpayers in Colorado but account for 66% of the dollars paid.
Corporate Christmas Encore: Project 2025 would lower the corporate tax rate from 21% to 18%, costing an additional $300 billion and leading to even more cuts to programs that support Coloradans.
Cuts to Safety Nets Will Steal Holiday Joy
To fund these unsustainable tax breaks, Project 2025 proposes drastic cuts to programs that serve millions of Coloradans, turning the season of giving into a season of taking:
Healthcare Programs on the Chopping Block: Medicaid, which provides healthcare to 1.4 million Coloradans (including 730,000 children), and Child Health Plan Plus (CHP+), which serves 70,000 kids, could face severe reductions. Cuts to these programs would disproportionately harm rural communities, where nearly 50% of healthcare is funded by public programs.
SNAP Struggles for Families: Over 600,000 Coloradans rely on SNAP for food assistance, including 13% of rural families. Cuts would leave many families struggling to afford holiday meals.
Hard Times for Working Parents: Programs like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) help over 600,000 Colorado families make ends meet, injecting $2.6 billion into local economies. Scaling back these credits would be a direct hit to working families trying to stay afloat during the most expensive time of the year.
A Holiday Wish for Fair Tax Policy
This holiday season, Rocky Mountain Values and the Colorado Fiscal Institute are calling on policymakers to reject inequitable tax plans like those in Project 2025 and prioritize policies that deliver fairness and opportunity for all Coloradans.
“Instead of letting corporate greed steal Christmas for working families, we need tax policies that ensure everyone pays their fair share,” said Justin Lamorte, Executive Director of Rocky Mountain Values. “It’s time to embrace the spirit of the season by protecting middle-class families and the programs that make our communities thrive.”
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