Letter: Vote no on Proposition 118
Many times, people want to vote for things that they think will make their life easier without considering the fact that the point of ease may actually make their life harder.
Prop 118 will force employers to reduce the number of employees they need in order to compensate for the cost of this new tax which will include up to 90% wage replacement and cover up to 12 to 16 weeks of leave. Many employers will reduce and or find it impossible to expand their business because of the onerous financial impact of this new regulation.
There is a lot of need for lower-skilled jobs in the market place. This will force out starter jobs as more regulation stifles their creation and removes that incentive for employers.
This proposition is another tax on small businesses in Colorado. The 10-employee limit is arbitrary as there are businesses in Colorado that have many employees and small profit margins. Losing an employee for even a week and having to pay them and their replacement is impossible.
Something not well known is that employees will share the cost of Prop 118 and be forced to pay into a program that they may never use. Given the current flat income tax of 4.63%, the wage premiums amount to between a 10% to 18% increase in income-related taxes on those wages. Furthermore, if demand exceeds the projected need, employees will pay an even larger percentage of their wages to support the program.
As for employers, in 2025, estimated total premiums to be paid total over $1.34 billion. This would be an effective increase of the corporate income tax of 204%,
This is another over-reach of government to force employers to go beyond what is possible in their market. The financial burden on employers to navigate these complex regulations and the increase costs associated with it will prove to be too much for business to absorb, especially in the current economic climate.
In conclusion, this is yet another poorly-thought-out plan that in the end will punish those that it is trying to help by making the job market more barren for those who need a job the most and cost more for those already employed.
Vote no on Prop 118
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Are we seeing more bears because there are more bears on the valley floor, or because we’re all spending more time at home? It could be a bit of both.