Colorado has seen greater volatility in the coincident index in the last year, but it appears Colorado is becoming more average as opposed to a stellar performer.
From flicking a switch and heating our homes with electricity, to an array of materials made from steel and concrete, minerals are found in many of the products we rely on each day and coal alone reaps benefits that are widely felt in everyday life.
TCJA affects businesses operating either as C corporations, sole proprietorships or pass-through business entities, e.g., S corporations, partnerships and LLCs taxed as partnerships.
While Colorado is home to relatively fewer foreign immigrants, the state more than makes up for it with interstate in-migration.
The most significant shift in the tax reform bill is a decrease in the top corporate tax rate from 35 percent to 21 percent – a monumental decline by any standards.
We’ll have to wait until January to see the final numbers, but if spending trends over the holidays are a good litmus test for the general state of the economy, I’d say things are looking moderately healthy.
For corporations the rate is permanently reduced from 35 percent to 21 percent.
The “theory” behind the tax cut is that businesses will reinvest this capital and therefore continue to drive the economy.
Given the historically low unemployment rate, it appears further employment growth could be significantly hindered in 2018.
There are still more people moving here than leaving, but the reasons people are giving are headed out will ultimately slow the population increases in the near future and have an impact on future real estate price appreciation.
Comparing the two rates is a good way to look at the Denver economy relative to the nation – higher inflation generally means a hotter economy.
What is in the tax bill that is so different? The proposed tax bill changes the way mortgage servicing rights are treated.