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Mark Hillman’s Capitol Review - Legislators bleed us again, promise more to come

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PICT Politician - Mark Hillman
Mark Hillman
(Kiowa County Press)

I miss John Hickenlooper – and I really miss Roy Romer.

While I often disagreed with their policies, at least we lived on the same planet because they understood that Colorado businesses must prosper to sustain the functions of government. 

The recent “extraordinary” session of the Colorado legislature starkly illustrated how the Democratic Party has changed since Gov. Hickenlooper’s term ended in 2019 and even more so since Gov. Romer’s tenure (1987-1999).

Before becoming Denver mayor, Hickenlooper was a restauranteur and worked as a geologist for an oil company in his early years.  Romer, still active today at age 95, coupled his work as a legislator and state treasurer with his family’s John Deere dealerships before being elected governor.

Democrats with meaningful business background are an endangered species at today’s State Capitol.  The current legislative majority seems to view the relationship between government and business like that of a parasite and a host.  Ruling “progressives” rarely hesitate to add more burdens – regulation, litigation or taxation – to the litany of hazards confronting anyone doing business here.

Business, it seems, is a necessary evil tolerated only to fund government.

A handful of business-friendly Democrats remain, but they either must largely toe the progressive mark or risk a primary challenge from their own party – much like Republicans insufficiently onboard with Trumpism.

Gov. Jared Polis called lawmakers back to Denver to solve a state budget shortfall that Democrats blamed on the federal One Big Beautiful Bill Act, but he wouldn’t allow them to consider spending cuts.

How did legislators balance their budget?  Well, they didn’t.

Everyday Coloradans would spend less if their income was reduced.  Instead, progressive Democrats increased state spending.

Instead, they bled taxpayers even more:

First, they eliminated the rebate business owners receive for the trouble of collecting and remitting sales taxes to the state, shifting about $56 million a year away from businesses and into government coffers.

Next, they took away a tax deduction for insurance companies that keep at least 2% of their employees in Colorado.  Insurers will pay an extra $90 million a year which will necessarily be passed along to everyone who buys home, auto or health insurance.

This is stepping over dollars to save dimes.

If insurers employ about 2% of their workforce in Colorado, they obviously have many more employees in other states, most of which value employers more than Colorado ones.  Taking away this incentive gives insurers every reason to move employees elsewhere.

They increased taxes by $97 million a year on so-called “wealthy business owners” by refusing to conform to federal law allowing individuals to deduct 20 percent of the business income they receive from partnerships, sole proprietorships and certain corporations.

Bill sponsor Rep. Emily Sirota (D-Denver) said allowing this deduction “is not good tax policy.”

To believe that, she must think business owners hide profits in their piggybank because to do most anything else – hire an employee, buy new equipment, or even buy a new car or build an addition to your house – puts more money into the economy.  That money turns over repeatedly to generate more income and sales taxes to be paid to – you guessed it – the State of Colorado.

The economic short-sightedness of these policies is just astonishing.  But what’s worse is legislators vow, “This is really just the start,” according to House Speaker Julie McCluskey (D-Dillon), a moderate on today’s Democrat spectrum.

Rep. Lorena Garcia, a self-proclaimed Democratic Socialist, laments the existence of “frivolous tax credits.”  It’s a safe bet she doesn’t consider Colorado’s biggest tax credits frivolous.  In the last two years, lawmakers created roughly $1 billion in “refundable tax credits” whereby state government literally writes checks to people, including illegal immigrants, who pay little or nothing in taxes.

Instead, progressives gripe about tax credits for people who do pay taxes because they do earn wages or profits in Colorado’s increasingly hostile business climate.  To those Coloradans, progressives say, “No tax credits for you!”

Our ruling majority puts Colorado firmly on the path to follow Oregon and Washington toward Californiacation – naturally beautiful states where everything costs too much because legislators don’t know what they don’t know.

Only voter intervention – by sensible Democrats, Republicans and independents – can change that.


Mark Hillman served as Senate Majority Leader and State Treasurer.  To read more or comment, go to www.MarkHillman.com