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On December 26, 2025, the Colorado legislature passed a new tax bill that is aimed at increasing revenue for education in the state. The bill, known as the Education Funding Act of 2025, was approved by a narrow margin in both the House and the Senate and is expected to generate an additional $500 million in revenue each year for public schools.The Education Funding Act of 2025 introduces a number of changes to the state's tax code in order to raise additional funds for education. One of the main provisions of the bill is an increase in the state income tax rate for individuals earning over $200,000 per year. These high earners will see their income tax rate increase from 4.63% to 5.5%, which is expected to generate approximately $150 million in new revenue.In addition to the income tax increase for high earners, the bill also imposes a new tax on luxury goods and services. Items such as yachts, private jets, and high-end clothing will now be subject to a luxury tax, with the revenue generated going towards education funding. This new tax is expected to bring in around $100 million in additional revenue each year.The Education Funding Act of 2025 also includes a provision for a tax on sugary beverages, in an effort to combat childhood obesity and promote healthier lifestyle choices. The tax, which will apply to sodas, energy drinks, and other sugary beverages, is projected to raise $50 million annually for education.Supporters of the bill argue that the additional revenue generated by these new taxes is crucial for improving the quality of education in Colorado. They point to the state's below-average per-pupil spending and crumbling school infrastructure as evidence of the need for more funding. Opponents, however, have criticized the tax hikes as burdensome on the wealthy and potentially harmful to the state's economy.Governor John Doe, who campaigned on a platform of increasing education funding, has indicated that he will sign the Education Funding Act of 2025 into law. He praised the legislature for their "bold action" in passing the bill and expressed confidence that it will lead to better outcomes for Colorado students.Overall, the passage of the Education Funding Act of 2025 marks a significant step forward for education funding in Colorado. With the additional revenue generated by these new taxes, the state is poised to make much-needed investments in its public