Tariffs Proceed to Hamper the Economic system, Improve Prices, Drive Up Inflation, Hurt the Job Market

DENVER – Today, Governor Polis and the Office of State Planning a Budget (OSPB) launched the Q3 financial forecast which confirmed that Trump’s tariffs and escalating commerce wars proceed to lift prices, worsen family funds, hurt the job market, and gradual progress.

“Today’s forecast again shows that the President’s reckless tariff taxes are increasing costs on consumers, sabotaging our economy, tightening the job market, and driving up inflation. While Colorado is fairing better than the rest of the country with lower unemployment and stronger growth, hardworking families are being cornered to grapple with higher costs, forcing them to make hard personal budget decisions at the dining room table. This forecast is clear, Coloradans are paying the cost for Trump’s tariffs and Republicans’ Washington politics,” stated Governor Polis.

Revenue is anticipated to drop beneath the TABOR cap in FY26 because of the impacts of H.R.1, with a return above the TABOR cap later within the forecast interval. However, based mostly on present projections low income progress will get rid of the Family Affordability and Earned Income Tax Credits in Tax Year 2026, however these credit are anticipated to return in Tax Year 2027. Opportunity Now Tax Credits funded by HB24-1365 can be lower in half for Tax Year 2026.

OSPB at present tasks TABOR surpluses of $363.9 million and $721.1 million in FY2026-27 and FY2027-28 respectively. OSPB tasks a 13.6% reserve in FY2025-26 because of actions taken through the particular legislative session, govt actions, and up to date forecast projections.

View the forecast, slides, and supplemental materials, or go to www.colorado.gov/governor/economics

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