Palantir, one of Colorado’s largest public companies, announced last week that it’s moving its headquarters from Denver to Miami. While they have not yet given official reasons for the move, concerns were expressed in its annual reports filed with the Securities and Exchange Commission.

Palantir cited new regulations on artificial intelligence adopted by Colorado legislators as a cause of concern, according to its annual reports for the fiscal years 2024 and 2025.

Palantir compared Colorado’s “state-level oversight” to the European Union’s Artificial Intelligence Act.

“Compliance with such obligations may be difficult, onerous, and costly, and could adversely affect our business, reputation, financial condition, results of operations, and growth prospects,” said the company’s most recent report.

Colorado Politics reported that the CEO of the Denver Metro Chamber of Commerce J.J. Ament sent a statement saying it is time for lawmakers to loosen restrictions and lower costs to do business in the state.

“Palantir moved here from California in 2020 seeking a new home where costs were lower and the environment was friendlier, but that was then,” he said.

This is now. And now is hostile towards business.

To prove that, members of Colorado’s House and Senate announced last week the introduction of a slew of bills that would reduce corporate tax deductions and sever Colorado’s tax regime from recent federal changes to the tax code. The federal tax changes provide significant tax breaks.

Business leaders responded with concern that the proposals would deal another blow to Colorado’s business atmosphere, according to Colorado Politics. Early-stage companies won’t be able to write off as many losses, any firm buying online software will be forced to pay more and companies with international operations may have to pay more in taxes to Colorado, potentially threatening their presence here.

Proponents of the bills are saying the usual things. They are fighting for hard-working Coloradans. They are standing up to the 1% and greedy corporations. They are protecting children. They are opposing Donald Trump.

But in doing those things, they are creating an increasingly hostile environment to the companies that employ those “hard-working Coloradans.”

Whether you agree with the tax breaks or not, this is a disastrous move. American businesses have options. When the cost of doing business in Colorado exceeds the cost of moving, they will move. Every time. They’re not going to “bite the bullet” to serve a politician’s ideals. When people or companies with wealth have a choice to keep it or give it away, they will choose to keep it.

Our representatives have been long trying to turn Colorado into Eastern California. But California has been bleeding their businesses for the past two decades. Most recently, they’ve lost two oil companies and several refineries with painful consequences to “hard-working Californians.”

Colorado and California are the abusive spouses in their marriage with business. They demean, they demand, they harm while providing little in return. At some point, the battered will muster the courage to leave. At some point, the abuse becomes too great to endure.

Palantir saw the writing on the wall. It was filled with vitriol and disregard. They left. Many more will follow.