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Dan Pilcher
CACI Senior Vice President
& Chief Operating Officer
Phone: 303.866.9600
E-Mail:
dpilcher@cochamber.com
Friday, December 11, 2009
House Finance Committee Chair Seeks to Eliminate Enterprise
Zones and Institute Sales Tax on Business Services
Representative Joel Judd (D-Denver), chair of the House Finance
Committee, reportedly will introduce bills in the upcoming
session to eliminate enterprise zones and implement a new tax on
services, according to a story on the Web site of The
Colorado Independent:
http://coloradoindependent.com/
Judd admitted that he does not think his bills will pass but
claims that Senator Chris Romer (D-Denver) will support his
bills. CACI members can reach
Representative Judd via e-mail at
repjoeljudd@joeljudd.com or by phone at 303.866.2925.
Governor’s Economic Development Chief Cautions against
Elimination or Suspension of All Business Tax Incentives
In a presentation yesterday to the CACI Board of Directors,
Don Marostica, Executive Director, Colorado Office of Economic
Development & International Trade, expressed caution against the
elimination or suspension of all business tax incentives as
being counterproductive during a recession because it will
increase the amount of taxes paid by companies.
Marostica, a Republican Representative and businessman from
Loveland before being picked by Governor Ritter to head up the
OED/IT Office, said that he’s good at telling legislative
committees that some proposed bills will hurt businesses. He
testified recently before a joint meeting of the House and
Senate Finance Committees, which had been called by
Representative Joel Judd (D-Denver) to discuss the possible
elimination of all business tax incentives. Marostica said he
told the legislators that eliminating or suspending all business
tax incentives would hurt business and would be
“counterproductive.” For The Denver Post’s coverage of
that hearing on November 12th, click on:
http://www.denverpost.com/legislature/ci_13775651
Marostica said that he hopes bills eliminating all business tax
incentives will be killed in committee. But he conceded, “It’s
going to be a fight.”
Marostica said that Colorado now has 250,000 individuals who are
unemployed, underemployed or have stopped looking for work. The
recession has caused with increased unemployment a drawdown in
the state’s Unemployment Insurance (UI) Fund. Consequently, the
UI Fund will run out of money during the first quarters and be
forced to borrow UI funds from the Federal Government, he said,
thus joining early next year 40 other states that will be in the
same predicament.
Marostica also said that Colorado will have to pay back in
January 2011 any money that it borrows in 2010. Consequently,
Colorado will have to raise UI taxes on businesses to repay the
Federal Government and replenish the Colorado UI Fund. Doing so
will be “counterproductive” during a recession, he acknowledged.
Because of the Gallagher Amendment, Marostica said, businesses
pay 75 percent of property taxes in the state compared to 25
percent paid by residential owners. Changes need to be made to
the Colorado Constitution because of the Gallagher Amendment and
other, conflicting amendments, he said.
Marostica said that 97.3 percent of the state budget is
controlled by mandates from the Federal Government and thus
can’t be cut to balance the state budget for fiscal year
2010-2011, which begins July 1st. Consequently, only
2.7 percent of the state budget remains that is subject to cuts,
which will be the “emotional part” of the process to create the
budget, he predicted.
CACI Annual Business Day at the Legislature Set for Thursday,
January 28th
CACI’s Annual Business Day at the Legislature Luncheon will
feature two state legislative leaders:
·
House Speaker Terrance Carroll (D-Denver)
·
Senate Republican Leader Josh Penry (R-Grand Junction)
In addition, Eric Sondermann, the well-known political analyst
and communications consultant, will provide an overview of the
state’s political races and issues, including the legislative
session. Sondermann heads up the firm, SE2:
http://www.publicpersuasion.com/about_us/people/staff_detail/?sid=10&view=pro
The Luncheon is scheduled from 12 Noon until 1:30 p.m.,
Thursday, January 28th, at The Brown Palace Hotel.
In addition, the 2 p.m.--3 p.m. CACI session in the Old Supreme
Court Chamber at the Colorado State Capitol with CACI members
will feature a panel of minority and majority legislators from
both the Senate and the House who will discuss business issues
and bills. CACI has invited both majority and minority party
legislators. Confirmed panelists include Representative Joe
Rice (D-Littleton), who chairs the House Business Affairs and
Labor Committee; Representative Frank McNulty (R-Highlands
Ranch); and Senator Rollie Heath (D-Boulder).
For more information on the Business Day at the Legislature and
sponsorships, contact Denise Reeves, CACI Vice President of
Events and Programs, at 303.866.9622 or via e-mail a
dreeves@COchamber.com
CACI Members Urged to Contribute to CACI’s Small-Donor Political
Action Committee by Year’s End
Under Colorado’s campaign finance laws, an individual can
contribute $50 per calendar year to a small-donor political
action committee. Any individual can thus contribute to CACI’s
small-donor committee, The Colorado Prosperity Fund.
Please mail personal checks made out to The Colorado
Prosperity Fund to the CACI Office to the attention of Dan
Pilcher. CACI’s small-donor committee contribution can be an
important factor for various reasons in the financial support of
a pro-business legislative candidate in a tight race. In the
2008 elections, the CACI Prosperity Fund supported six
legislative candidates in key races.
CACI’s long-standing political action committee, The Colorado
Business Political Action Committee (CBPAC), can only give
$400 per legislative candidate over the two-year 2009-2010
election cycle. Individuals and companies can only contribute
$500 during this period to a political action committee. CACI
members who wish to contribute to CBPAC should contact Denise
Reeves, CACI Vice President of Events and Programs, at
303.866.9622 or via e-mail at
dreeves@COchamber.com
CACI Council Meetings Scheduled for January
Council meetings will be held at the CACI Office. Council
members who would like to sponsor lunches for Council meetings
should contact Misty Fox, CACI Office Manager, at 303.866.52 or
via e-mail at
mfox@COchamber.com
·
Tax Council, Friday, January 8th
·
Labor and Employment Council, Wednesday, January 20th
·
HealthCare Council, Thursday, January 21st
·
Governmental Affairs, Tuesday, January 26th
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