Loophole For Companies To Avoid Paying State Income Tax Could Be Closed

DENVER (CBS4)- A bill designed to close a loophole that allows some companies to avoid paying state income taxes prompted heated debate at the state Capitol on Wednesday.

Supporters believe some businesses in Colorado are creating shell companies in countries like Bermuda or the Cayman Islands.

The bill would require taxes to be paid where profits are made rather than where the company is headquartered.

Republicans oppose the bill and claim it's anti-business.

"This would put Colorado at a disadvantage with 47 other states. How about leveling the playing field for companies considering moving to Colorado," said Rep. Polly Lawrence, a Republican representing Douglas County.

"The premise of opposition seems to be for us to attract big business to Colorado, we have to tell them please do business here and don't worry about paying your income taxes," said Rep. Mike Foote, a Democrat representing Boulder County.

The bill to close the loophole passed the house on Wednesday and will head to the senate where it is expected to face some tough opposition.