"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 ''The San Diego Union-Tribune'' is a metropolitan daily newspaper published in San Diego, California, that has run since 1868. Its name derives from a 1992 merger between the two major daily newspapers at the time, ''The San Diego Union'' and ...

'' 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. 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 ( ; ) is an island U.S. state, state of the United States, in the Pacific Ocean about southwest of the U.S. mainland. One of the two Non-contiguous United States, non-contiguous U.S. states (along with Alaska), it is the only sta ...

California California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...

Florida Florida ( ; ) is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders the Gulf of Mexico to the west, Alabama to the northwest, Georgia (U.S. state), Georgia to the north, the Atlantic ...

Colorado Colorado is a U.S. state, state in the Western United States. It is one of the Mountain states, sharing the Four Corners region with Arizona, New Mexico, and Utah. It is also bordered by Wyoming to the north, Nebraska to the northeast, Kansas ...

British Columbia British Columbia is the westernmost Provinces and territories of Canada, province of Canada. Situated in the Pacific Northwest between the Pacific Ocean and the Rocky Mountains, the province has a diverse geography, with rugged landscapes that ...

, 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