News Summary

• The One Big Beautiful Bill Act (OBBBA) provides tax relief for overtime workers.
• But Colorado Democrats are using it as an excuse to squeeze those workers for higher state taxes.
• Over the past year, lawmakers in more than a dozen states have introduced legislation that provides some form of state tax exemption for tip income.
• Colorado voters may soon have an opportunity to undo that maneuver, which was designed to counteract some of the tax relief provided by OBBBA.
• It remains to be seen whether lawmakers in other states will follow Colorado’s lead, changing state tax law as a way to not provide state tax relief.