Taxes

Colorado faces $1.2B budget gap due to Trump tax cuts

The governor’s budget director projects a revenue loss ‘greater than we saw in the first year of the Great Recession.’
The Colorado State Capitol in Denver. (AP Photo/David Zalubowski)

DENVER — Colorado lawmakers are bracing for a dramatic drop in state tax collections this year as the state tax code automatically conforms with the One Big Beautiful Bill Act.

Revenues will immediately drop in many states with personal and corporate income taxes thanks to President Trump’s tax cuts, creating budget gaps lawmakers must close by cutting spending, pulling money from savings or raising taxes.

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