The financial disaster on the West Coast that is known as California will spell real opportunity to surrounding states that are friendly to taxpayers and business.
As George Will pointed out this weekend, business costs in California already are 20% higher than the national average and when this is combined with a state income tax that is now so heavily shifted towards the high-end that over 40% of the state's income taxes are collected from 1% of its population, the possibility that you might see a Hollywood celebrity staggering out of the front gates of their mansion on the way to rehab hardly seems justification to remain.
At the turn of the millennium Colorado was able to capture a number of businesses and retirees that were fleeing the state under similar but less gargantuan difficulties.
Here on the Western slope an influx of retirees looking to our climate and recreational opportunities began to explore the area. Their arrival and the higher salaries injected into the economy by the oil and gas industry were able to support new retail, service and restaurant options and the area became even more desirable.
Unfortunately, the actions of our legislature and governor over the last two years seem to be pushing down the same road that ruined California, rather than trying to capture the exodus. Indeed, were it not for our tax limitation protection we would be well on the same path.
But the spenders in the Capitol are forever busy and with the help of a friendly court have been in the process of dismantling even that thin line.
In speaking with many retirees moving here over the last few years you find that prior to choosing a place to put down new roots they usually begin to check out the tax structure -- including income but especially property and sales tax as these are of special interest to those receiving retirement benefits or annuity payments.
As part of this they usually monitor the news from an area and in our case the news is not good. If one were to simply read the newspapers from various parts of the state over the last two years it would appear that with every week the Legislature meets it proposes more fees and revenue schemes.
Locally, our municipalities seem to be in a contest to come up with new ways to assess sales taxes. One should ask themselves if they were living on a fixed income and were looking for a safe haven for the next 20 years, would Colorado be that place?
