Apr 18

Common Sense Institute study says Colorado UI debt will need more payroll tax revenues.

Colorado will need to increase payroll tax revenues to repay the Unemployment Insurance (UI) trust fund according to a new study by the Common Sense Institute. Colorado, alongside states like California, New York, and Connecticut, has one of the country’s highest burdens of federal loans to its unemployment insurance fund. As of April 8th, Colorado is one of 19 states currently reliant upon federal loans and has the 9th-greatest amount of money outstanding in both absolute and population-adjusted dollars. 8 of the top 9 states who need federal loans to support their unemployment insurance are blue states.

Repaying the UI Trust Fund’s debt will require nearly 25% more payroll tax revenue per year, on average. Between FY20 and FY23, total revenue to the fund is projected to grow at an average annual rate of 24.8%. For the fund to be restored to its pre-pandemic solvency by 2028, five years after the end of the latest projection, contributions will have to exceed payments by an average of almost $316 million in each year after 2023.

To continue reading this story, please click (HERE):

 

Mar 12

Colorado’s Competitiveness: The Challenge of Economic Recovery Under More than $1.8 Billion in New Regulations, Taxes and Fees

Prior to 2020 and the global economic and cultural upheaval caused by the COVID-19 pandemic, Colorado stood out for having strong economic growth and offering a desirable lifestyle. Coloradans had created the #1 state economy and enjoyed competitive advantages in attracting business growth and an educated workforce. In fact, in late 2019, US News World Report ranked Colorado’s business climate as one of the best in the nation.

However, after two periods of negative economic shocks in 2020, in both late spring and through the holidays, the state of business in Colorado remains under duress.

  • There were 150,000 fewer jobs in Colorado in December 2020 relative to the start of the years, representing a 5.4% cut.[i] While the statewide reduction is significant, it masks the disproportionate impacts across industries, as the leisure and hospitality industry was down 90,900 jobs by end of 2020, whereas professional and business services was up 7,100 jobs.[ii]
  • State taxable sales were down $8.9B, or -1.35%, in 2020 relative to 2019.[iii] Small business suffered, especially. As of February 10th, small business revenue was down 29.5% from January 2020 levels.[iv]
  • Colorado’s unemployment rate increased by the 2nd-most among all states, from 2.5% to 8.5%. The Colorado state unemployment ranking went from near first (4th) to almost last (48th).[v]

To continue reading this story, please click (HERE):