"Sunshine tax" or "Paradise tax" is an ironic term used in the United States and Canada to describe the phenomenon that salaries are often lower than the national average, and costs of living higher than the national average, in places that have a desirably temperate climate. The term can also be used to mean anything that has the effect of making costs higher in areas like the Sunbelt. In 2007, the '' San Diego Union-Tribune'' calculated the cost of the California sunshine tax at $1.1 billion just for the additional cost of gasoline in the state. In Hawaii, the same concept is called a "paradise tax". It arises because incomes are lower and the cost of living is higher in Hawaii than on the

mainland Mainland is defined as "relating to or forming the main part of a country or continent, not including the islands around it egardless of status under territorial jurisdiction by an entity" The term is often politically, economically and/or dem ...

. It is not an actual tax, but rather a perceived persistent difference between costs among locations. It is also described as "the price you pay for paradise" or "the cost of living in paradise." Randall W. Roth, in a book entitled ''The Price of Paradise'', listed a number of possible causes, including shipping costs, land availability, and differences in regulation.Peter S. Adler, Joanne Punu, Randall W. Roth and Eric Yamamoto, "What is the paradise tax and what are its implications?" in Randall W. Roth, ed., The Price of Paradise, Volume II, Honolulu: Mutual Publishing, 1993 The phenomenon arises because many people are willing to accept lower earnings and higher costs of living to live in a place like

Hawaii Hawaii ( ; haw, Hawaii or ) is a state in the Western United States, located in the Pacific Ocean about from the U.S. mainland. It is the only U.S. state outside North America, the only state that is an archipelago, and the only state ...

California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...

Florida Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...

Colorado Colorado (, other variants) is a state in the Mountain states, Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the wes ...

British Columbia British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, ...

, or other places with an attractive climate.

"As most people know, everything seems to cost more in California. The houses are more expensive, the gas and groceries cost more and don’t ask about the cost of daycare. This added cost of living has inspired its own term – the sunshine tax. It is the added cost to live in one of the best climates on earth, where the sun shines almost every day."''The Sunshine Tax''
M is for Money, via Wayback Machine, September 14, 2009

References

{{DEFAULTSORT:Sunshine tax Economic geography Economic problems Income distribution