That is why we urge you to think seriously about the way our municipal governments raise revenue to pay for the public goods and services we believe are necessary for our quality of life. Over time, government has imposed taxes on the wages of every working person, on the homes and automobiles and other personal assets of every resident, on the assets and gross revenue and profits of every business, on every exchange of goods and services, and even penalizing visitors by taxing stays in hotel rooms. The result for many cities has been an ongoing loss of people and commerce. On the bright side, there is today a recognition that heavy taxation of businesses and working people only serves to drive them away. People who have options will not hesitate to abandon a city or region if government is not doing the right things from their perspective.
Taxes are only one contributing factor to a high cost of living or of doing business.
With markets often global rather than national or regional, a location to be desirable must allow businesses the opportunity to compete internationally, absorb local costs of producing goods or offering services and still make a profit for the owners. The responsibility and challenge to our elected representatives is to strike the right balance between the need for revenue and the need for a healthy, nurturing economy. A more deeply penetrating analysis than is the norm of how taxation affects markets, investment decisions and the migration of people is part of the educational mission of Common Ground U.S.A. and its membership. Our research leads us to rather striking conclusions of how the way we raise our public revenue drives economic and social outcomes. What cities have to offer most is location.