Recent reports showed a slowdown in U.S. hiring in March, tepid growth in consumer spending at retail stores, a big drop in industrial output and softer-than-expected home building, reinforcing a view the economy downshifted in the first quarter and didn’t have great momentum moving into the second.
Fewer than 300,000 American workers filed applications for unemployment benefits for the sixth consecutive week, pointing to labor-market strength even as hiring cooled last month.
The legal issue isn’t solely about housing, but about whether cities have unlimited power to extract concessions from homebuilders for things that are not “impacts” from the project. In other words, it’s legitimate for government to require new developments to pay to mitigate the effect of the new residents on local infrastructure (roads, sewers, fire service), but is it OK for cities to require affordable housing just because officials want to see more of it built?
It may be one of the thorniest, and most critical, votes the California congressional delegation has faced in decades, a proposal pitting Silicon Valley and Hollywood against big labor over a trade pact the Obama administration calls a linchpin of its economic agenda.
Economic activity in the Twelfth District continued to improve moderately during the reporting period of mid-February through the end of March. Overall price inflation was slight, while wage inflation was moderate. Retail sales and demand for business and consumer services increased moderately. Overall manufacturing activity improved modestly on net. The pace of output in the District’s agricultural sector was unchanged. Real estate activity advanced, especially in the commercial real estate sector. Lending activity increased moderately. . . Contacts in the health care industry reported that significant losses by insurers in the wake of health reform generated downward pressure on the price of health care services. Contacts expect significant rate increases for insurance on the health exchange in the fall, as insurance companies attempt to recoup previous losses.
Of those states taxing wages, eight have single-rate tax structures, with one rate applying to all taxable income. Conversely, thirty-three states levy graduated-rate income taxes, with the number of brackets varying widely by state. Three states—Kansas, Nebraska, and Oregon—impose two-rate income taxes. At the other end of the spectrum, three states have ten or more tax brackets, led by Hawaii with twelve. Top marginal rates range from Pennsylvania’s 3.07 percent to California’s 13.3 percent.
On the heels of a bill to impose new taxes on professional services, the California Board of Equalization estimates that such a law would generate some $123 billion for the state, with revenue roughly split between state and local government.
The U.S. economy continued to expand across most of the country in February and March, though a strong dollar, falling oil prices and harsh winter weather slowed activity in some sectors, according to the Federal Reserve’s latest survey of regional economic conditions.
Our short answer is this: while the drought is affecting many Californians and communities in different ways, we currently do not expect the drought to have a significant effect on statewide economic activity or state government revenues. A recent Wall Street Journal survey reportedly showed that the vast majority of economists agree that the economic effects of the drought will either be “too small to show up” in economic data or be “small but measurable in the data.”
The California State Board of Equalization (BOE) released an estimate today indicating that California’s state and local governments may receive approximately $122.6 billion in new revenue if tax was collected on services that are currently non-taxable. Of that amount, $60.9 billion could go to the state, with $61.7 billion for city, county, and other local government entities. The estimate assumes a statewide average sales tax rate of 8.42 percent.
“While the drought is affecting many Californians and communities in different ways, we currently do not expect the drought to have a significant effect on statewide economic activity or state government revenues,” Tuesday’s report by the Legislative Analyst’s Office read. “That being said, we acknowledge the drought as a risk factor for the state’s economy, especially if its effects worsen or are prolonged.”
California has elected officials who are not concerned about whether businesses succeed. Successful companies hire people.
A gauge of U.S. business prices rose in March for the first time since October, a sign of stabilizing inflation in the economy.
One of the Florida governor’s main goals is to boost shipping volumes to Florida’s ports. He seized on a labor dispute this year that congested ports along the West Coast.
The drought, now in its fourth year, is by many measures the worst since the state began keeping records of temperature and precipitation in the 1800s. And with a population now close to 39 million and a thirsty, $50 billion agricultural industry, California has been affected more by this drought than by any previous one.