Opinion | Lewis: Colorado’s tipping point

Colorado is approaching a tipping point — one where the decisions we make over the next 12 months will shape the state for decades. That may sound dramatic. It isn’t.

I grew up here and spent the first 20 years of my career in Colorado before working in Texas, Massachusetts, and California. That gave me a front-row seat to how different states approach business, regulation, and growth. For a long time, Colorado struck the right balance. We had a great environment, relatively low housing costs, moderate taxes, strong individual freedoms, and a business climate that actually encouraged companies to invest and grow.

Even when I worked elsewhere, I chose to build engineering and product teams here. It was a win-win. Employees avoided the crushing costs of places like California and Massachusetts while still enjoying a high quality of life. For years, Colorado’s “purple state” balance may have been its greatest competitive advantage.

That balance is rapidly disappearing.

Over the past decade, the changes have been gradual—but the impact is now unmistakable. Regulation has surged—Colorado now ranks among the most heavily regulated states in the country. Affordability has collapsed, driven in part by those same policies. While TABOR has kept income taxes somewhat in check, property taxes and fees have surged. For the first time in memory, more people are leaving Colorado than moving here.

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That’s not a coincidence. It’s a signal.

What’s harder to understand is why Colorado appears intent on copying California’s playbook. High taxes, heavy regulation, and declining affordability are not theories—they are observable outcomes. I spent nearly two decades working in California. It is not a model we should be rushing to adopt.

Up to now, Colorado has been getting polite warnings — the economic equivalent of a seatbelt chime. But instead of slowing down, we’re accelerating.

The clearest example is the state’s AI legislation (SB24-205). In a California-style move, Colorado became the first and only state in the country to pass a law of this scope. The problem is not just that it’s aggressive and idealistic — it’s that it’s impractical. The law effectively requires companies to prove, in advance, that their AI algorithms will not produce discriminatory outcomes. It’s like requiring a skier to prove they won’t fall before getting on the lift. It’s an impossible standard that creates massive compliance costs while providing only the illusion of safety. Meanwhile, the real-world result is predictable: companies — especially startups — will simply go somewhere else.

And that’s the real issue. This isn’t just about one bill. It’s about the message being sent: “If you’re building something new, don’t do it here.” I hate to say it but, in today’s environment, I wouldn’t start a tech company in Colorado. Even if this law is softened or repealed (which is likely), the damage is done. Businesses have long memories.

Now layer on what’s coming next. This fall, voters will likely be asked to effectively dismantle TABOR and approve aggressive new taxes. If that happens, Colorado takes another step towards the same high-tax, high-regulation model that has driven people and businesses out of other states. We’re already seeing the effects. Property taxes have surged. Costs are rising. And yet — where are the results? Are roads dramatically better? Are schools suddenly overfunded? Most people would struggle to point to tangible improvements from all of the new revenue.

That’s because the model itself is flawed. More regulations and higher taxes do not create prosperity. They suppress it. Colorado does not have Silicon Valley or Hollywood as an economic backstop. Our growth depends on being a place people choose to live and build. Right now, that choice is getting harder. Colorado still has time to change course — but not much. This is the moment where we need our leaders to step up and hold the line on excessive regulation and tax increases.

Because once you cross a tipping point, you don’t ease into decline. You accelerate into it.

Mark Lewis, a Colorado native, had a long career in technology, including serving as the CEO of several tech companies. He’s now retired and writes thriller novels. Mark and his wife, Lisa, and their two Australian Shepherds, Kismet and Cowboy, reside in Edwards.