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Chamber: Colorado economic recovery challenged under $1.8 billion in new taxes, regulations

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COLORADO SPRINGS, Colo. (KRDO) - Newly passed taxes and regulations by the state legislature could make it more difficult for businesses and households to bounce back from the economic downfall caused by COVID-19 restrictions.

The Colorado Chamber of Commerce made the announcement during a news conference Tuesday morning, featuring a recent report from the Common Sense Institute, a non-partisan research organization dedicated to the protection and promotion of Colorado's economy.

The report found that the cumulative cost of new taxes and fees will be approximately $1.8 billion per year within the next three to five years.

That projection does not include the costs to businesses and households to comply with new regulations and legislation which don't have full cost estimates yet -- including mandatory coverage of sick leave, increased health insurance benefits coverage, full costs of oil and gas regulations, and multiple layers of mandates to reduce emissions.

There were 150,000 fewer jobs in Colorado in December 2020 relative to the start of the year, representing a 5.4% cut, according to the Common Sense Institute report. Nearly 91,000 of those jobs were in the leisure and hospitality industries.

Small business suffered, especially. As of February 10th, researchers say small business revenue was down nearly 30% from January 2020.

Colorado's unemployment rate increased by the second-most among all states, from 2.5% to 8.5%. The Colorado state unemployment ranking went from 4th to 48th, the report claims.

Colorado Chamber officials are now calling on the state legislature to hold off on rolling out the new regulations and taxes as small businesses try to recover from recent shutdowns.

"We need our state leaders to simply allow businesses to get back on their feet during this time, because that is the only path to economic recovery," said Loren Furman.

Colorado Springs / Economy / Local News / Personal Finance

Julia Donovan

Julia is a reporter for KRDO. Learn more about Julia here.

Comments

13 Comments

  1. Majority of Coloradans voted for those running the state. Now we will all pay the price.

  2. When you vote democrat, this is the consequence. There are no money trees or golden eggs out there. This is trickle down taxation deviation, that effects anybody who pays taxes. This is what the Dems want to do on a federal level too. They’re like kids in a candy shop with no thought to the belly ache that awaits.

  3. “That projection does not include the costs to businesses and households to comply with new regulations and legislation which don’t have full cost estimates yet — including mandatory coverage of sick leave, increased health insurance benefits coverage, full costs of oil and gas regulations, and multiple layers of mandates to reduce emissions.”
    So is the Chamber of Commerce stating that these needed programs that all employers should have been providing to their employees somehow wrong? Just because these companies don’t want to cut into their over-inflated revenue stream does not corelate to the employee’s rights to having these basic fundamental needs.
    The Chamber of Commerce’s support of this is non sequitur and only shows they are more in support of the corporations and businesses than the workers that make these companies actually function. A companies most valuable asset is their people or is this lesson no longer taught.

    1. You need to go and learn some basic economics. Small business are the targeted ones because most large corporation do provide many of those benefits.
      Do you think the businesses will just pay the taxes and what not…. no. The price will be passed down to the consumer of their goods or services. So now pricing goes up on everything so they can cover the costs and stay in business. or they change things around. Like with Obamacare, full time employees had to be given/offered healthcare or pay a tax. What happened…… many companies cut their employees hours to be less so they are considered part time and hired more part time employees to cover the gaps. It will happen again with mandatory paid leave.
      So in the midst of a pandemic and locked down economy when many people are struggling to survive they will implement this and the ones who pay for it are the consumers. So utilities just went up, now groceries, fast food, tradesmen services, trash service, internet ….etc will all go up.
      That is why it is bad for everyone except the wealthy democrats who push feel good legislation. They are not working paycheck to paycheck. Many will gain from it as orders for new solar panels will be directed their way. That what they lobbied for and the politicians are delivering on their promise to pay them back for helping them get elected and push this legislation. It may seem like they are caring for you but really when you look at the whole picture they are harming everyone else.

      1. Again the assumption from you fall short. Yes, pricing goes up because the companies and corporations will not allow their revenue stream to be interrupted in this free enterprise economy. No, most companies did not offer these benefits, my proof would be if they did then what is causing the increase? If it is already being offered then there would be no increase. Many companies cut their staff because they were not offering these employee benefits and didn’t want their revenue stream at the top to be interrupted.
        More on the point though I have these simple questions for you. Are there more workers or executives at most companies? How many executives go without these benefits? How many of these executives believe it is acceptable that their employees do not have these same benefits? In a nation that has more workers than executives why is the benefits so inappropriately balanced? Do you really believe that it is acceptable to have a job that doesn’t have to offer these employee benefits that places them in further financial burden, not only on themselves, but in worst cases on the taxpayers themselves by having to go on Medicaid or other financial assistance programs? Who are you fighting for the corporations or the people?
        This isn’t a Republican or Democrat issue as both have been bought and paid for by lobbyists. This is a American Worker’s versus Corporations issue, and small businesses and entrepreneurs are horrifically caught in the middle because they too cannot compete with corporations and the powers they yield, let alone the regulations the government places on them as they are treated with the same regulations as these corporations are. It’s almost like corporations have made it nearly impossible for an up and coming mom and pop businesses to succeed through the legislation their lobbyists have bought from our nations politicians. So do you follow what the evidence shows or just what you are told by the talking heads?

    2. These “basic fundamental needs” will be much harder for “workers” to come by when businesses no longer exist or move out of state to reduce overtaxation and overregulation. Witness California.

      1. Besides, the politicians don’t give a damn about workers or business, as long as the state gets its cut from BOTH the worker and the employer.

        1. This is exactly the problem. The politicians are to work “For the People” as instructed in the Constitution. This is why their salary comes from our tax money. Yet when politicians were allowed to pass the laws that once forbid super Pac and corporate lobbying that shift in power changed from “For the People” to “For the highest bidder”.

  4. didnt coloradans vote for tax decreases? Now lawmakers are just raising taxes without votes to counteract what the people have voted for. This also should tie into the utility companies that voted to decrease rates and then a month later vote to increase them because of one cold weekend?! where is the news outlets when you need them. Colorado will be California in 5 years.

  5. I know a small business that closed due to covid. Closed permanently after 60 years in business. But even if they survived covid, it would have closed under these new mandates.margins are too thin to raise prices to cover family leave, new taxes etc.its all good till you lose your job. Be sure you blame to right people behind it.

  6. Please tell us what companies are giving only their executives benefits. Most big companies in fact have the same benefits for all full time employees. Big banks-yes, big retailers- yes, big construction, plumbing, electrical-yes, factories-yes. You know who gets bigger and better health insurance and retirement?and they get it even if they “quit” before 20 years? And doesn’t have to rely on obama care -ever? Your elected congress and senators.who did you work for that abused you so badly?

  7. All the growth they wanted; and all the after-growth that always occurs.

    Like weeds in a field full of fresh fertilizer; here come all the new growth taxes and expenses.

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