Colorado Politics

U.S. Rep. Evans tells Polis small businesses are feeling strain from state regulations

In a letter to Colorado Gov. Jared Polis on Tuesday afternoon, U.S. Rep. Gabe Evans raised concerns he says he’s hearing from small-business owners about the effects of the continued increase in state regulations.

Evans wrote in the letter, which Colorado Politics obtained an advanced copy of, that small‑business owners and local chambers of commerce in his district describe “ever‑growing hardships” they attribute to legislation passed by the Democratic‑led legislature and signed by Polis in recent years.

“Under the direction of your administration and Denver’s Democrats, Colorado has become the sixth most heavily regulated state in the country, and small business owners and their employees in my district are feeling it every day,” Evans wrote, listing several bills Polis has signed in recent years that he believes have negatively impacted the business climate.

Among them are House Bill 25-1296, which imposes state taxes on overtime, Senate Bill 21-260, which establishes new fees on diesel fuel, deliveries and transportation services, and SB 21-1162, which imposes a statewide 10-cent plastic bag fee.

“These laws have harmed small-business owners and prevented regional economic growth,” Evans wrote. “Many employers are now being forced to operate with smaller staff and tighter margins because they simply cannot keep up with the rising costs imposed by your state government.”

Evans represents the 8th Congressional District, stretching from Thornton to Greeley. He won the seat in 2024 in a close race against former Democratic U.S. Rep. Yadira Caraveo.

Evans faces Democratic state Rep. Manny Rutinel in November. The 8th District is again expected to be highly competitive and is widely viewed as a district that could influence the balance of power in Washington.

Rutinel did not immediately respond to a request for comment on regulations tied to small businesses.

With Democrats leading both chambers of the legislature, they have often been criticized by business organizations for increased regulations deemed duplicative and costly. Proponents argue that these regulations are necessary to ensure safe workplaces.

One business owner told Colorado Politics last year that the growing number of regulations passed each session is like a “death by a thousand cuts.”

“While I am working hard in Washington to pass legislation to help small-business owners in my district, you are partnering with ruling Democrats in the State Legislature to overwhelm those same businesses with higher fees, rising labor costs, increased compliance mandates and endless red tape that make it harder to hire workers, expand operations, and keep their doors open,” Evans said.

At times, Polis has worked to slow the rise in regulations by vetoing bills or threatening Democratic-led chambers.

In May, Polis signed SB 137 into law, a measure sponsored by bipartisan leadership in the House and Senate that aims to reduce “administrative burdens” through additional reviews of agency rules.

“Colorado is the best state to live, work, play, and do business,” Polis said after signing the bill into law. “This bipartisan effort will help lower the cost of doing business in Colorado by cutting through burdensome regulations, and will attract more businesses to Colorado.”

Evans argued Republican members of Congress are “trying to make it easier for small businesses to thrive” through the passage of laws like H.R. 1, or the “Working Families Tax Cuts Act,” which eliminated federal income taxes on tips and overtime, increased the Child Tax Credit, and made the 20% small-business tax deduction permanent. The bill also provides over $4.5 trillion in tax breaks for billionaires and large corporations through cuts and deductions.

According to the letter, small businesses make up 99.5% of all Colorado firms and employ 48.6% of the state’s employees. Evans cited a 2025 survey conducted by the Colorado Chamber of Commerce that found that 65% of businesses with fewer than 100 employees listed regulations as one of their top three challenges.


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