Colorado Voters to Decide Tax Payment Protections

DENVER – Colorado voters will head to the polls Tuesday to decide how much tax money the government can keep.

The plan on the ballot, which could have repercussions nationwide, would relax rules protecting individual income tax payments to help compensate for a shortfall in the state budget.

Click in the box to watch a report by FOX News' Carol McKinley.

Both sides warn that either way the vote goes could cause a crisis or pose danger to Colorado.

"This is probably the most passionate ballot initiative this state has faced in at least 10 to 15 years," said Floyd Ciruli, a political analyst. "They almost consider it the holy grail of tax limitation."

The plan would change a 13-year-old constitutional rule that restricts government spending by giving Colorado taxpayers surplus tax revenues. No taxpayer has seen any of that money for the last three years despite good budget numbers.

If voters pass the measure, it could energize the anti-tax movement nationwide, Ciruli said.

More than 12 other states have proposed similar measures.

"If this passes what it means is we've missed an opportunity to truly re-invent government, to truly get more services for less," said Jon Caldara, president of the Independence Institute.

The vote has created unusual alliances, both Denver newspapers, including the conservative Rocky Mountain News, endorse retreat on the rule as do the public employees unions and Republican Gov. Bill Owens (search).

Owens, who originally backed the measure, changed his position, saying that the state can't afford more budget cuts and needs extra tax revenues.

"We've already cut transportation spending in Colorado by 41 percent, we've cut department of public health and environment by 49 percent. We've cut higher education by 20 percent," Owens said.