The business-minded Common Sense Institute added up the costs and savings of Proposition 116 to reduce the state's income tax levy from 4.63% to 4.55%.
The report is part of the Denver-based economic think tank's ballot analysis for November.
The institute said Colorado individuals and businesses would save $8 for every $10,000 of taxable income, if Proposition 116 passes.
That would cut about $11.4 million from the state's income tax collections, but in the mix of things it could be addition by subtraction, the institute's finding suggests.
The think tank crunched the numbers on likely outcomes if the state reduced public sector jobs and spending for private sector growth.
Over the first five years, the Colorado's private sector would add between 896 and 1,384 jobs, while the public sector would see its expected growth shrink from 1,514 new jobs to 132.
That means state lawmakers would have to make deep cuts in programs such as education, senior services and other spending to accommodate further cuts, which already are expected to ripple for sometime because of the ongoing impacts of the COVID-19 pandemic.
"The net impact is a reduction in employment against the baseline of up to 324 or an increase of up to 1,670," a summary of the report states. "Similar results can be seen across wages and output. The 5-year net impact upon GDP is between $8.1m and $55.5m above the baseline."
Read the full analysis by clicking here.
The report was prepared by Chris Brown, the institute's director of policy and research, with research analyst Erik Gamm.
CSI will release more analyses on the issues facing voters this year as the Nov. 3 election approaches. The think tank said Thursday morning it is working on an analysis of Proposition 117, the ballot question that would require voter approval on fees that add up to $100 million, much like voters approve tax increases under the Taxpayer's Bill of Rights.
The institute's full ballot guide is available by clicking here.