Economic Outlook

Is Colorado the Next Zero-Income Tax State?

Posted by Ben Murrey, nationalreview.com

on Tuesday, 19 October 2021 10:02

The effort to chisel away at the state income tax has gained steam in the Centennial State. Can voters and Governor Polis pull it off?

When an interviewer recently asked Colorado’s Democratic governor Jared Polis what the state’s income-tax rate should be, he answered without hesitation: “It should be zero.”

For many Coloradans, this came as no surprise: The effort to chisel away at the income tax has already gained steam in the state. Last year, voters reduced the tax with Proposition 116 — a ballot initiative that brought the rate from 4.63 percent to 4.55 percent. The Denver-based Independence Institute, where I work, led last year’s rate-reduction campaign, through its issue committee, and plans to advocate another tax cut next year. Yet, for reasons discussed in further detail below, those eying complete elimination of the income tax may have to take another approach.

The Value of Zero Income Tax

If Colorado were to adopt the governor’s recommendation, it would join eight other states with no income tax and become the third blue state boasting the status, alongside Washington and Nevada.

Eliminating the tax would provide an enormous direct windfall to Colorado households. In 2017, the average Colorado family paid $2,850 to the state in income tax. But the indirect benefits of economic growth and opportunity for residents should not be understated…read more.

Constitutional challenge mounted against B.C. vaccine passports

Posted by Jeremy Hainsworth, biv.com

on Tuesday, 19 October 2021 9:50

A constitutional challenge has been filed in BC Supreme Court challenging the province’s COVID-19 vaccine passport system by two women claiming they cannot receive any vaccines.

The vaccine card orders “ require the petitioners to choose between their own physical health and well being and their civil liberties,” the suit said. “Either choice has negative consequences on their families as well as themselves. The vaccine card orders actively deprive the petitioners of their Charter protected rights and freedoms.”

The suit names B.C.’s attorney general and minister of health as respondents.

Sarah Webb, of both Calgary and Victoria, and Maple Ridge’s Leigh Anne Eliason filed the challenge, saying they have have physical disabilities which require a medical exemption from receiving further vaccines.

Webb, 39, works in hotel management, dividing her time between Victoria and Calgary.

The suit said she received the Moderna vaccine May 2. Six days later, the suit said, she experienced fatigue, cramping, heart arrhythmias, swollen lymphs, severe pain, and a rash which engulfed her arm…read more.

Canada’s ‘tax the rich’ plan leaves big debt risk untouched

Posted by Julie Gordon and Fergal Smith, reuters.com

on Monday, 18 October 2021 11:14

Prime Minister Justin Trudeau’s government is set to impose higher taxes on Canadians, which will help fund some campaign promises but are not broad enough to also start paying down the country’s record levels of debt, leaving Canada vulnerable to the next economic crisis, analysts say.

This could be a risky strategy for the country, which piled on new debt at a faster pace than any of its Group of Seven peers during the pandemic. The high level of indebtedness could limit Canada’s ability to manage long-term challenges that require massive government funding, like transitioning from a fossil fuel-reliant economy to a green one.

A far higher debt-to-GDP ratio post-pandemic means Canada has far less wiggle room to respond to the next crisis, be it economic, trade, climate or health-related, analysts say.

Essentially, Canada’s large debt burden “does not leave significant fiscal space to offset major new shocks,” said Kelli Bissett-Tom, director of Americas sovereign ratings at rating agency Fitch Ratings.

Fitch has already stripped Canada of a triple-A credit rating, but S&P Global Ratings and Moody’s Investors Service still give Canadian debt the highest rating…read more.

Free Webinar – 3 Things You MUST Do To Make $ In The Stock Market

on Friday, 15 October 2021 13:27

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Vancouver construction firm turns to robotics to address housing challenges

Posted by Tyler Orton, biv.com

on Friday, 15 October 2021 8:57

Robots are not taking to B.C. construction sites to build the next generation of homes. At least not yet.

But if one hears from a friend that robotic arms played a big part in the building of their humble abode, it may be closer to fact than fiction in the coming years.

“There’s just really no innovation in the construction sector for the better part of 75 years,” says Oliver Lang, founder and CEO of Vancouver-based Intelligent City Inc.

While advances in telecom have seen communications do away with rotary phones in favour of smartphones, no such analogue exists in the construction industry over that same period. In the meantime, climate change, housing affordability and housing supply have been heightening British Columbians’ anxiety levels.

“We’re trying to tackle all of these things at once and ask ourselves the question: Can we use technology to overcome these hurdles?” Lang told BIV…read more.