Today is a big day in the world of taxes. The voters of Colorado have decided to reform TABOR – The Taxpayer Bill of Rights. Clark has been a big fan of this act for about the past 10 years because it dealt with restrictions on government, especially state government. When it was passed, the law imposed strict limits on government spending and growth based on inflation. It shrunk the share of government in the state of Colorado, which was a great thing. But the restrictions became too tight and the citizens of Colorado decided to increase taxes on themselves by about $700 million a year. So, there will still be strict rules, but it won’t be as restrictive. Clark thinks the idea was great in practice. He agrees that we need to limit the strength of government and its ability to grow, and he thinks more states need some kind of enforceable limits.

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In other news, President Bush’s tax panel has submitted its proposal for changes to the country’s tax code. It would change the way we’re taxed in that it’s a simpler code with just a few tax brackets. Most people would pay 15 percent on income. Some would pay as much as 30 or 33 percent. The plan also reduces the mortgage interest deduction. But people will be taxed less, so it kind of evens out. Several groups are going to get hit hard, though. Single folks, those over 65 years old and those living in areas with inflated housing prices are among them. Clark would be happier if we went to a completely different system all together, so we’ll keep you posted on what happens.