Proposition HH would gut the Taxpayer’s Bill of Rights under the guise of a tax cut. Monday’s Gazette-sponsored debate on the measure, in partnership with 9 News Denver, did nothing to prove otherwise.

After the debate, The Gazette’s editorial board again advises voters to reject HH, which begins with “Shall the state reduce property taxes for homes and businesses …?”

Gov. Jared Polis, the highest-ranking proponent of HH, argued for the measure with the help of longtime family friend Art Laffer – a revered conservative economist (known for the Laffer Curve) who helped devise President Ronald Reagan’s economic revolution.

Nine News moderator Marshall Zelinger asked good questions, including one regarding the Polis-Laffer relationship factor.

“How is a voter supposed to know if you’re a conservative who really thinks Prop H is a good idea or a Polis family friend who happens to be a conservative who’s doing his friend a favor being here?” Zelinger asked.

“I do know the Polis family very, very well. I love them dearly,” Laffer said. “I am on some of their boards. Jared was an intern in my office when he was 13. He’s the greatest guy in the world. I think he’s the best single governor in the United States.”

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In a past conversation, Laffer told a Gazette editorial board wants Polis for president. To keep things real on HH, one must put Laffer’s support of a tax increase, and the jeopardization of TABOR, through the lens of the friendship factor.

“I’m a tax-cutting Republican who completely agrees (with HH),” Laffer said, assuring viewers his support was not based on friendship.

As Zelinger explained, with HH “your property taxes are going up again next year, with or without Proposition HH. If Prop HH passes, the increase will just not be as much. But in return, Colorado taxpayers will have to give up some and perhaps all their TABOR refunds in the future.”

Neither Laffer nor Polis proved him wrong. Instead, Laffer criticized TABOR refunds when Zelinger asked if TABOR refunds inject money into the economy.

Of course, it does. For three decades refunds have contributed to Colorado’s standing among the country’s strongest economies. TABOR protects taxpayers when politicians do not. Laffer has a surprisingly different view.

“Absolutely not,” he said to Zelinger’s question. “It is not returned to the people who paid it.”

Instead of returns, Laffer said, the economy needs lower taxes. We can’t argue with that.

“With high taxes, people try to earn less. They try to shelter their income. They try to change the location of their income, and they try to pay less in taxes,” Laffer said.

To get around TABOR refunds, he said, politicians “rejigger” revenue and spending with “credits, in deductions, exemptions, exclusion, omissions so that the surplus is not there … The reason you’re such a successful state right now is you have very low property tax rates, and you have very close control of your taxes and your prosperity.”

Exactly. That’s why Coloradans consistently uphold TABOR. What we need, as Laffer explained, are lower tax rates to offset soaring property values. It really is that simple. A temporary and minor “tax cut” funded with future refunds is a mere fungibility scheme, no matter how they package it. We are surprised Laffer doesn’t see it this way.

HH opponents Michael Fields, president of the Advance Colorado Institute, and State Rep. Rose Pugliese argued for Polis to call a special legislative session. They made HH look like a veritable Ponzi scheme. They want Polis to lead his fellow Democrats in passing a substantial tax cut funded by record-breaking revenues.

Voters should defeat Prop HH and demand a real tax cut to offset rising property values. Polis has a high intellect and good communication and leadership skills. He could and should put these strengths to work by achieving a straight-up tax cut – sans the funhouse mirrors of Prop HH.

Denver Gazette Editorial Board