Colorado Business Leaders Assess Economic Shift as Tax Measures Hang in Balance
As the dust settles on the 2026 election, the politics in Colorado appear more deeply entrenched than ever. While many eyes were fixed on the broader partisan shifts, the state’s business community spent the hours following November 3rd scrutinizing the razor-thin margins of key ballot measures that could fundamentally reshape the state’s economic climate. For leaders in the private sector, the primary point of contention is Amendment 87, a proposal that would dismantle Colorado’s flat 4.4% income tax in favor of a graduated system that for some upper incomes would extend rates to beyond 8%.
The intensity of the response from industry groups reflects a growing anxiety regarding the state’s competitiveness. Loren Furman, president and CEO of the Colorado Chamber of Commerce, told The Denver Gazette that the measure amounted to a penalty for small business people for having secured additional revenues, warning that such tax policies could prove devastating for small businesses. She links this apprehension to a wider pattern: Colorado’s slipping status on the national stage, which she identifies as a factor that may discourage businesses from investing, moving to the state, or even establishing operations here in the first place.
The sentiment is echoed by those who have seen the state’s economic trajectory from both sides of the aisle. Doug Friednash, who co-chairs a state government relations group at Brownstein Hyatt Farber Schreck in Denver, characterized the election results as a political tsunami. Speaking to The Denver Gazette, he noted that a decade ago, when he had served as chief of staff to Gov. John Hickenlooper, the state’s economy had been a major lure for new business growth. He argued that the current shift is moving the state in a concerning direction, particularly as he noted states losing business growth to the South.
The Complex Reality of Proposition NN
While the uncertainty surrounding Amendment 87 continues—with the measure holding a razor-thin lead of around 0.4% as of late Wednesday—voters appeared to have approved Proposition NN. This initiative raises the cap on the amount of tax money the state is permitted to utilize under the 1992 Taxpayer’s Bill of Rights (TABOR) amendment. The passage of this proposition has prompted a cautious, forward-looking response from trade groups.
Leslie Oliver, vice president of external affairs for the Denver Metro Chamber of Commerce, acknowledged the measure’s approval, which permits those supplemental funds to be allocated toward K-through-12 education costs. She informed The Denver Gazette that her organization intends to collaborate with legislators to ensure that the new revenue generated by NN is strictly applied to teacher salaries and smaller class sizes as pledged by the campaign, rather than being repurposed as a general allocation for the state budget. Meanwhile, other industry leaders are looking for ways to bridge the divide between public policy and private investment.
Coalition building and collaboration will be critical as lawmakers consider proposals that could affect investment, development and economic growth. We’re also evaluating the potential impacts of the tax measures approved by voters and look forward to working with policymakers to support a healthy, competitive business climate for Colorado.
That perspective, offered by Kathie Barstnar, executive director of the Commercial Real Estate Development Association, shows that Colorado’s business leaders are preparing for a long-term negotiation with the state government, regardless of the final outcome of the remaining ballot tallies.
The Local Stakes in Denver
The statewide fiscal debates are occurring alongside shifts in municipal governance that carry their own economic weight. Denver voters faced a slate of local measures, including Question 2I, which sought to shift the city to a two-year budget cycle. While supporters argued that a biennial process would allow for better long-term planning and more thorough public review, critics pointed to the city’s recent history of budget deficits as evidence that accurate long-term forecasting remains a significant challenge.
The city’s reliance on sales tax—which accounts for about 58% of what the city takes in—makes it inherently vulnerable to economic fluctuations. Over the last ten years alone, the Auditor’s Office has successfully recovered roughly $10 million in restitution while upholding the rights of more than 15,000 employees; furthermore, in 2016, the city council expanded the office’s mandate to include oversight regarding wage theft and minimum wage compliance. Whether through statewide tax reform or municipal budget restructuring, the common thread remains the same: a push for fiscal stability in an era of rapid change.
As election officials continue to process outstanding ballots, the final margins on Amendment 87 could still shift. For the business leaders watching these tallies, the results will serve as the indicator of whether Colorado intends to lean into its traditional model of fiscal moderation or embrace a new, more progressive approach to state revenue.
