By Marissa Ventrelli
The Gazette (Colorado Springs, Colo.)
(TNS)
A national organization said Colorado’s decision to pass a graduated income tax structure—which translates to a tax hike for businesses and residents earning $500,000 or more—means tough choices ahead for small businesses.
In a statement, the National Federation of Independent Business called the passage of Amendment 87 “disappointing for Colorado’s small business owners and taxpayers.”
“When taxes go up, small business owners face tough choices: raise prices for their customers, reduce employees’ hours, stop hiring, or cut jobs completely,” said Michael Smith, director of the National Federation of Independent Business. “Colorado has already become the 4th most expensive state in the country to live in. Amendment 87 is sure to push our ranking even higher while pushing job creators and needed investment to neighboring states with more competitive tax codes.”
Amendment 87 would replace Colorado’s flat income tax rate of 4.4% with a graduated rate, in which taxpayers earning $500,000 a year or more will see their liabilities increase, while those earning less will see a decrease of a few hundred dollars.
Amendment 87 is expected to bring in at least $2 billion in additional tax revenue, which must be spent on K-12 and higher education, healthcare and childcare. Some estimates put the new annual revenue at $2.7 billion.
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Although the ballot measure amends the state Constitution, it addressed only a small provision of the TABOR amendment; therefore, the state title board ruled it needed only a simple majority—50% plus one—instead of the 55% normally required for ballot measures amending the Colorado Constitution.
A competing ballot measure that sought to cap the state’s income tax rate at 4.4% failed to pass, receiving only 47% of the vote.
Chris deGruy Kennedy, president of the Bell Policy Center, said the graduated income tax would ensure “every family has access to affordable and high-quality healthcare and childcare and that we can attract and retain the best teachers in the country to teach all of our kids in our schools.”
Kennedy also co-chairs Protect Colorado’s Future, a coalition of over 100 organizations that support Amendment 87. The group gathered at La Raza Park in Denver on Thursday to declare victory.
Christine Soliz of New Era Colorado, the coalition’s other co-chair, said Colorado voters “made it clear that the ultra-wealthy and corporations will pay their fair share for the public good. Even amid the blue tsunami across the nation, Amendment 87 is the only ballot measure in the country this election cycle that raises taxes on our top earners.”
Business organizations opposed the measure, arguing it could negatively impact Colorado’s small businesses and economic competitiveness.
Leslie Oliver, vice president of the Denver Metro Chamber of Commerce, said that if small businesses have to pay more in taxes, they’ll be forced to cut elsewhere, such as employee pay, safety investments, and savings for hard times.
Oliver also noted that Amendment 87’s passage means Colorado’s income tax rate is higher than eight of its top 10 competitors, such as Texas and Arizona.
“We don’t need to do things to diminish our economic competitiveness,” she said. “We’ve got to look forward and implement policies that will increase our competitiveness and provide good-paying jobs for people.”
Photo caption: Supporters of Colorado’s Amendment 87 held a victory rally on Nov. 5, 2026. (The Bell Policy Center/Facebook)
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© 2026 The Gazette (Colorado Springs, Colo.). Visit www.gazette.com. Distributed by Tribune Content Agency LLC.
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