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San Francisco Has a Plan to Hit Its New IPO Millionaires Where It Counts
https://gizmodo.com/san-francisco-has-a-plan-to-hit-its-new-...

The city is facing a strange and pressing question about how to deal with the avalanche of wealth that’s likely to be unlocked during this season of IPOs. In the face of a widening wealth gap, an intensifying housing crisis, and a highly visible homeless crisis, one city official is proposing new taxes on the companies going public.

San Francisco Supervisor Gordon Mar revealed a proposal at a board of supervisors hearing on Wednesday that would put a 1.12% payroll-tax covering stock compensation on the ballot in November 2019. The proposal would combine with the existing 0.38% payroll tax and ultimately mean a restoration of San Francisco’s old 1.5% payroll tax rate — which was the rate until 2011 when the city changed it in a bid to attract more tech firms.

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intercst
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The argument over the proposed tax is as old as business itself: If the city increases taxes on businesses, the businesses will leave.

Or the business will sit down with the city council and lay down the law to the council.

Isn't that what happened in Seattle?
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100tp143 writes,

<<The argument over the proposed tax is as old as business itself: If the city increases taxes on businesses, the businesses will leave.>>

Or the business will sit down with the city council and lay down the law to the council.

Isn't that what happened in Seattle?

</snip>


This is a ballot initiate that will be decided by San Francisco voters. Are they willing to accept the current level of high housing cost driven homelessness and feces strewn streets to keep business happy? Perhaps they are, but I doubt it.

intercst
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The argument over the proposed tax is as old as business itself: If the city increases taxes on businesses, the businesses will leave.

Or the business will sit down with the city council and lay down the law to the council.


It is always a relative thing. With a tax increase some businesses will fail, or grow less, or not start, or move out of town. Others will take advantage of whatever the tax increase funds, and start where they otherwise wouldn't have, or grow more, or move into town.

So, what's the tax increase funding?

If it's funding business-as-usual for the city, then the positive effects on some businesses will be approximately nonexistent.
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San Francisco Supervisor Gordon Mar revealed a proposal at a board of supervisors hearing on Wednesday that would put a 1.12% payroll-tax covering stock compensation on the ballot in November 2019. The proposal would combine with the existing 0.38% payroll tax and ultimately mean a restoration of San Francisco’s old 1.5% payroll tax rate — which was the rate until 2011 when the city changed it in a bid to attract more tech firms.

</snip>

intercst

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The city tax on payroll was one reason Bechtel decided to leave SF for Virginia, Maryland and Washington DC area for its headquarters and major offices in the early 2000s.

jaagu
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jaagu writes,


The city tax on payroll was one reason Bechtel decided to leave SF for Virginia, Maryland and Washington DC area for its headquarters and major offices in the early 2000s.

</snip>


I don't doubt it. But a Civil Engineering firm isn't the same as a high tech software company dependent on the talent pool in the San Francisco/Silicon Valley area. If tech companies could staff up with the kinds of folks they'd find in low-tax havens like Mississippi and Arkansas, they'd already be there.

intercst
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<<<<The argument over the proposed tax is as old as business itself: If the city increases taxes on businesses, the businesses will leave.>>

Or the business will sit down with the city council and lay down the law to the council.

Isn't that what happened in Seattle?

</snip>

This is a ballot initiate that will be decided by San Francisco voters. Are they willing to accept the current level of high housing cost driven homelessness and feces strewn streets to keep business happy? Perhaps they are, but I doubt it.

intercst>>



That simply reflects the refusal of liberal politicians to allow police to enforce the laws.


Seattle recently elected mayor has begun enforcing laws against living on the streets in tents and RVs, and that is a sharply declining problem as a result.


What had been happening in Seattle, as in San Francisco, is that the political class was holding the population as a whole hostage to obnoxious conditions in order to extract ever higher subsidies for bums, vagrants and drug users. The real issue is whether that practice will continue.

In Seattle, the answer is NO!

But in San Francisco perhaps this device can be used again to extract yet more taxes from the working population to support the bums and vagrants.



Seattle Pioneer
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I don't doubt it. But a Civil Engineering firm isn't the same as a high tech software company dependent on the talent pool in the San Francisco/Silicon Valley area. If tech companies could staff up with the kinds of folks they'd find in low-tax havens like Mississippi and Arkansas, they'd already be there.

==============================================

I predict tech companies in SF will be leave SF, if the SF city tax remains. They can hire the same type of tech people in many places around the country. Or they can easily go to Berkeley, Oakland, Hayward, Fremont, Walnut Creek, Livermore or Vallejo areas.

Bechtel is not a run of the mill civil engineering firm. Bechtel is one of the world's largest engineering and construction companies. Bechtel has been a major player in new technology startups and developments such as nuclear energy, refineries, LNG projects, pipelines, solar and wind energy, space launch complex facilities, DOE nuclear facilities, combined cycle gas turbine projects, missile defense systems with Boeing, US military and nuclear weapons facilities, commercial aerospace facilities, hydroelectric projects and many others.
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The proposal would combine with the existing 0.38% payroll tax and ultimately mean a restoration of San Francisco’s old 1.5% payroll tax rate — which was the rate until 2011 when the city changed it in a bid to attract more tech firms.

Sounds like an incentive to relocate outside of the city limits. SF itself has a pretty small footprint, IIRC.

DB2
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