The pen is mightier than the sword, and even the threat of the pen holds great power.

By threatening to veto House Bill 1420, Gov. Jared Polis brought confused Democrats to the table for a lesson in common sense. By Saturday night, as the legislative session drew within days of closure, the governor struck a compromise that dilutes the massive tax increase proposal to something most opponents can live with.

Congratulations, governor, but don’t put away the pen. Thank fellow Democrats for their flexibility, but veto this bill despite the changes.

As amended, HB 1420 raises the income threshold for business owners who will lose deductions created by the 2017 Tax Cuts and Jobs Act passed by Congress and signed into law by President Donald Trump.

The bill originally capped income eligibility levels at $75,000 for singles and $150,000 for joint filers. That meant a tax increase for most Colorado business owners, are organized as “pass-through” limited liability corporations, sole proprietorships, partnerships, or S corporations. It was an open assault on small businesses struggling to survive and recover from mandatory pandemic shutdown orders.

The new version raises the eligibility level for exemptions to $500,000 for individuals and $1 million for joint filers.

In other words, soak the rich.

Polis and other opponents of the original bill said employers use the exemptions to grow their businesses and create more jobs. Eliminating the exemptions would stifle economic growth. In doing so, the higher taxes would smother the economic engine that funds state government. It would make Colorado an unattractive climate in which to start, grow, or relocate businesses.

While the new version is an improvement, the higher taxes threaten large employers exactly the way they threatened small employers. They will slow the growth of larger employers and reduce the number of jobs they create going forward. That means fewer paychecks for the state to tax and less income to stimulate the economy.

Some of the most desirable employers will avoid Colorado, deferring to states that encourage success.

That’s not to mention the legal conundrum. HB 1420 is a blatant violation of the Colorado Constitution’s Taxpayer’s Bill of Rights. The law forbids any “tax policy change directly causing a net tax revenue gain” without an election.

The legislature and governor cannot eliminate tax exemptions – for the express purpose of growing tax revenues – without enacting a “tax policy change.” To obey the law, they need to ask voters.

Gov. Polis started tiny businesses and grew them into behemoths that change the way we do things. His startup business ProFlowers changed the way we order bouquets on Mother’s Day and other special occasions. He grew his family’s Blue Mountain Arts into a dot.com-era sensation that popularized electronic greeting cards. He used profits to create good jobs and services valued by consumers. He can and should help others do the same.

Gov. Polis has a unique opportunity to distinguish himself as a leader who fights for individuals who are rich, poor, and middle class. His chosen last name means “self-governance, autonomy, and independence” in Greek. It means don’t penalize success.

Gov. Polis can tell the world that Colorado is a place to do business and succeed without limits. He can lead the country’s most robust economic recovery. He can lead like few others dare, with the fearless swipe of a pen.