Chasing Out John Galt

Ayn Rand’s Atlas Shrugged asks what happens when society’s most productive people decide the price of producing has become too high.

They leave.

Colorado voters may soon confront their own version of that question.

Amendment 87 would replace Colorado’s 4.4% flat income tax with six marginal tax brackets, ranging from 3.7% to 8.4% for income above $1 million. Most taxpayers would receive a modest tax cut, while high earners would pay substantially more.

The argument for it is straightforward: those who have benefited most from our economy can afford to contribute more.

But taxes do not exist in a vacuum.

Palantir was founded in Silicon Valley but moved its headquarters to Denver in 2020. Its controversial work with ICE and the military made it the target of protests. Six years later, Palantir announced it was leaving Denver for Miami.

Palantir did not say Colorado taxes—or Colorado politics—caused its departure. But its move should nevertheless make us think.

Entrepreneurs, investors and capital are increasingly mobile. They can live in Boulder, Austin, Miami, New York—or almost anywhere. Taxes are only one consideration. Regulation, talent, culture, quality of life and whether businesses feel welcome matter too.

A prosperous society should care for those who need help. But prosperity must first be created before it can be redistributed.

John Galt’s question was not whether successful people could afford to pay more. Of course they could. The more interesting question was: At what point do they decide not to?

Coloradans should ask themselves a similar question.

How much can we demand from our most productive citizens while remaining a place where they still choose to build, invest—and stay?

— Sina.