Economics and Finance

CSG Midwest
Even as the U.S.-Canada border shut down earlier this year to all but trade and the movement of essential workers, the strength and durability of the relationship between the two countries was on display.
“[They] worked as partners to restrict, but not [totally] close, the border,” Chris Sands, director of the Canada Institute at the Woodrow Wilson International Center for Scholars, said during a May webinar for state and provincial legislators.
This cooperative effort (which included Mexico, via a separate border agreement with the United States), he said, was “historic.” And looking ahead, as the border begins to “reawaken,” he views the North American trading relationship as potentially more important than ever before.
According to Sands, one of the likely takeaways from the COVID-19 pandemic will be a push to change supply chains for essential goods such as medical equipment and supplies — away from producers in markets such as China to those in North America. Not only will this be a deliberate policy shift among governments, he said, some manufacturers “will no longer want to put their supply chains at risk.”
CSG Midwest
Since early April, Rep. Dave Greenspan and 23 other members of a specially formed Ohio House task force have been meeting, sharing ideas, and getting the perspective of business owners across various sectors and geographic areas.
One question above all else is guiding his work on the task force: What can we do to help businesses reopen, and remain open, safely?
“We’re not looking at the same things that the governor is looking at as far as public health protocols,” Greenspan says. “Our attention is on what we can do either directly through legislation or by facilitating, through other bodies, actions that allow [businesses] to open.”
That Economic Recovery Task Force in Ohio is an example of the important work being done by the Midwest’s legislatures, even during a time when the powers of governors have been strengthened due to the public health emergencies caused by the COVID-19 pandemic.
CSG Midwest
On a given day, an average of $2 billion in goods and services travels between the United States and Canada. In the middle of much of that cross-border activity: the Midwest’s states and their neighboring Canadian provinces.
The month of March 2020 will be remembered as a historic one in that relationship.
In response to the coronavirus outbreak, the two countries closed all nonessential traffic at the border. Though these rules did not apply to most trade, automakers (central to cross-border trade and supply chains in this region) subsequently shut their factories.
Somewhat overshadowed by these extraordinary actions, though, was the start of an important new chapter in U.S.-Canada trade relations. On March 13, the Parliament of Canada approved the United States-Mexico-Canada Agreement, or USMCA, thus ensuring that this successor to the 26-year-old North American Free Trade Agreement will go into effect. (The USMCA already had received formal approval by the U.S. and Mexican governments.)
CSG Midwest
As of early March, Wisconsin was set to become one of the first states in the nation to expand incentives for private investments in federally designated Opportunity Zones. Under AB 532, which passed with bipartisan support in the Assembly and Senate, Wisconsin would double the tax credits for investors supporting projects in financially strapped, low-income communities across the state. (The bill had not yet been signed by the governor as of early March.)
CSG Midwest
With the governor’s signing of HB 2 in early 2020, Ohio deepened its commitment to “upskilling” the state’s workforce, a policy objective that lawmakers say will help employers fill high-demand jobs and prepare individuals for better-paying jobs.
CSG Midwest

In September, the California legislature passed Assembly Bill 5 (AB 5) requiring gig economy workers to be classified as employees. The law, which went into effect Jan. 1, is intended to make it more difficult for companies to hire workers as contractors. AB 5 affects more than 1 million low-wage workers in California as it transforms a range of industries from trucking to technology. [1]

In order to remain classified as a contracted worker, the company must prove...

CSG Midwest
From targeted tax relief and monetary compensation, to help finding a job or pursuing a postsecondary degree, Midwestern states have a number of laws and programs in place to assist military veterans. Almost every state in the region, for example, doesn’t tax retired military pay. The lone exceptions are Nebraska, which offers a partial income-tax exemption, and Indiana, which currently is phasing in a full exemption between now and 2023 (the result of last year’s HB 1010).
CSG Midwest
From targeted tax relief and monetary compensation, to help finding a job or pursuing a postsecondary degree, Midwestern states have a number of laws and programs in place to assist military veterans. Almost every state in the region, for example, doesn’t tax retired military pay. The lone exceptions are Nebraska, which offers a partial income-tax exemption, and Indiana, which currently is phasing in a full exemption between now and 2023 (the result of last year’s HB 1010).
CSG Midwest
Legalized sports betting has come to a fourth state in the Midwest, thanks to bipartisan bills signed by Michigan Gov. Gretchen Whitmer in December. The package of legislation marks the culmination of years of work by lawmakers to change state policy on sports betting and internet gaming. The end result: Michigan residents will be able to wager on sports events (amateur and professional) and participate in online, casino-style gaming such as poker through the state’s commercial and tribal casinos.

CSG Midwest
Three recent national studies underscore the strength of state economies, fiscal conditions and revenue collections entering the new legislative year in the Midwest. Data from the Urban Institute, for example, compares state tax collections between the third quarters of 2019 and 2018 (July to October) — for every state in the region, revenue was up, and North Dakota was one of eight U.S. states with year-over-year increases of 7.5 percent or more. Nebraska and Wisconsin also experienced significant revenue gains.

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