For the Coloradan electorate, economic concerns, particularly those related to living costs, have taken center stage in this election season. It’s estimated that following the polls, around 15% of Colorado voters will prioritize the state of the economy when casting their ballots. Concerns range from housing and grocery costs to the price of maintaining a household, mirroring nationwide issues of inflation, which have led to an increase in average household expenditures by $34,194 since 2020, according to Greenwood Village’s business-focused think tank, the Common Sense Institute.
While financial experts argue that inflationary pressures are ‘cooling’, Coloradans are feeling the pinch due to relentless increases in living costs over the past couple of years. Denver’s apartments, for example, have seen rental prices skyrocket to around $2,000 per month for a one-bedroom unit. Homeownership has also become a daunting prospect, with the average home price peaking at over $540,000. Adding to the increased financial pressure, food prices in not only Colorado but also across the country, have experienced a 25% jump from 2019 to 2023.
The question then arises: how should Coloradoans vote if living costs are their primary consideration? The answer to this heavily relies on one’s economic stance and how it aligns with their other political priorities. With the November ballot throwing several tax measures into the mix, voters have plenty to consider before marking their choices.
Worth noting, various regional and local tax measures haunt the ballot, with several so-called ‘de-Brucing’ measures posing significant threats to financial stability as they aim to abolish the tax limits previously established under the Taxpayer’s Bill of Rights (TABOR). Authored by former state Rep. Douglas Bruce, these measures effectively mean less money in the pockets of regular citizens, deceitfully proposed as ‘for the greater good’.
One of these, Ballot Issue 7A, proposes letting the Regional Transportation District continue to spend an additional $50 million to $60 million per year above the TABOR cap, rather than refunding that surplus to the millions of people who made retail purchases within the RTD’s eight-county taxing district. If it passes, it’s essentially a green light for the RTD to keep all sales tax revenue indefinitely – a significant blow to the fiscal health of taxpayers.
In Jefferson and Arapahoe counties, authorities are attempting to convince voters to allow their county governments to retain more tax dollars than allowed under TABOR. Denver residents face similar challenges, with two ballot measures proposing sales tax hikes that could potentially make Denver the highest taxed city in the Front Range with a staggering tax rate of 9.65% – even beating Boulder’s 9.05%.
Denver residents must consider whether paying higher taxes for purportedly increased access to housing and health care justifies the inevitable spike in their cost of living. It seems that even ballot measures that don’t overtly address living costs are, in fact, heavily intertwined with the issue.
Surveying the landscape of the presidential race, Former President Donald Trump offers refreshing economic plans aimed at lifting the burdens off taxpayers. He envisions having no taxes on social security benefits and tips for those hardworking individuals in the hospitality sector. Trump also pledges to stimulate the economy by offering incentives for foreign companies to relocate their production facilities to America and employ U.S. workers.
Additionally, the former president suggests imposing tariffs on countries trading with the US. His proposal includes a substantial tariff, soaring to 200%, on vehicles imported from Mexico. Such a bold move could recalibrate the U.S.’s trade relationships and bolster domestic industries.
On the other side of the aisle, Vice President Kamala Harris also expresses support for ending taxes on restaurant workers’ tips. However, she proposes swelling the child tax credit from $2,000 to a whopping $6,000 for parents and advocates for increasing the minimum wage. Given that Colorado’s minimum wage stands at $14.42 per hour and will surge to $14.81 at the start of the next year, it’s clear Harris’ policy only aligns with the federal minimum wage, which has been stuck at $7.25 since 2009.
Harris additionally introduces tax incentives favoring small business owners and first-time homeowners. However, considering the inflationary pressures and soaring housing prices her policies seem like mere band-aids applied to critical economic wounds.
When examining the congressional races, candidates aiming to represent Colorado assert that the economy and the cost of living are top priorities. Nonetheless, their solutions vary, reflected in their proposed tax policies, industry regulations, and social services contributing to food and housing affordability.
State lawmakers brace themselves for crunch decisions in the upcoming years surrounding funding K-12 education, especially given the looming cuts to local property tax revenues. Other challenges include navigating unexpected Medicaid costs due to overexpenditure by the state Department of Health Care Policy and Financing last fiscal year to the tune of approximately $154 million.
Lastly, state legislators hold power in addressing increasing housing costs, with the potential to pass impactful legislation that influences housing availability. The choice of who these decision-makers should be is left to the voters, which can make or break the economic prosperity of Coloradans.