Colorado families and businesses are facing an unprecedented squeeze from skyrocketing taxes, fees, and external pressures like federal tariffs. While lawmakers tout programs like free school meals and child care subsidies, the reality is a massive shift of burdens onto taxpayers—through TABOR loopholes, voter-approved hikes on high earners, and new local sales taxes. Denver households now shell out over $51,000 annually in taxes and fees, up nearly 50% in recent years, far outpacing income growth. Add in Trump's tariffs driving up costs, and it's clear: Colorado's government is growing faster than its people can afford.
Colorado was once a beacon of fiscal restraint, thanks to the Taxpayer's Bill of Rights (TABOR), which limits government growth and requires voter approval for tax increases. But clever workarounds—like exploding "fees" exempt from TABOR—have undermined those protections, allowing unchecked revenue grabs that hit everyday Coloradans hardest.
A recent Common Sense Institute report reveals the stark truth: TABOR-exempt enterprise fees have surged over 3,300% since 1994, from $742 million to nearly $26 billion annually. These aren't optional charges—they're mandatory burdens on residents and businesses, outpacing any tax relief TABOR provides. Lawmakers have cleverly reclassified taxes as "fees" (think trash collection, recycling programs, or regulatory charges) to bypass voter approval, effectively raising costs without accountability.
In Denver, the pain is acute. Average households now pay $51,001 per year in combined state, local, and federal taxes and fees—a 48% jump from recent levels that far exceeds wage growth. This includes everything from property taxes to hidden fees tacked onto utilities and services. As one X user noted, new recycling mandates are inflating grocery bills, disproportionately hurting low-income families already struggling with inflation.
Voters have unwittingly contributed to the burden. Recent ballot measures approved tax hikes on higher earners to fund universal school meals and child care initiatives. In Larimer County, a 0.25% sales tax increase—generating about $28 million yearly—passed to support child care, adding 25 cents to every $100 spent (with exemptions for essentials). While these programs sound noble, they layer new costs onto a system already bloated: Colorado's state budget has ballooned over the past seven years, with spending growth significantly outstripping modest population increases.
Looking ahead, progressive groups are pushing a 2026 ballot measure for a graduated income tax, potentially raising rates to 4.6% (or higher) for those earning over $600,000, netting billions more in revenue. Proponents claim it cuts taxes for most, but critics warn it risks driving away high earners and jobs, further eroding Colorado's competitiveness.
Compounding the problem are federal tariffs under President Trump, which critics say have spiked Colorado's effective tariff rate from 3% to 21%—the highest in over a century. Businesses report millions in added costs, passed onto consumers through higher prices for goods, energy, and supplies. X discussions highlight real frustrations: accusations of government "stealing" funds for non-priority spending (like immigrant support amid hikes), fraud in programs, and rent fee bans leading to outright rent increases.
| Key Increases | Impact |
|---|---|
| TABOR-Exempt Fees & Regulations | 3,400% rise since 1994; burdens residents by bypassing voter safeguards |
| Household Taxes (Denver) | $51,001 annually (up 48% recently); outpaces income and savings growth |
| Federal Tariffs | Effective rate from 3% to 21%; creates uncertainty, higher costs for businesses and families |
| Voter-Approved Hikes | Taxes on high earners for schools/child care; local sales taxes add to everyday expenses |
Public sentiment on X echoes taxpayer fatigue: complaints about "hidden taxes" via fees, budget bloat despite slow population growth, and programs benefiting few while costing many.
It's time for real reform. Strengthen TABOR to close fee loopholes, reject endless hikes disguised as "investments," and prioritize spending restraint. Colorado thrives when government lives within its means—not when it picks pockets through fees, tariffs, and endless expansions. Families deserve relief, not more burdens.