DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - San Francisco gives Twitter a tax break to keep it in the city

**peemovvie** · 04-25-2011, 07:08 AM

I thought Californians loved taxes. What's up with this???

Why would these companies be so concerned with taxes when most Californians are in favor of them and want lots of government control over their lives???

A study conducted by budget analyst Harvey Rose found that San Francisco was the only city in the nation that taxed stock options. So? Something to be proud of, San Francisco.

http://www.baycitizen.org/business/s...ter-tax-break/

San Francisco Supervisors Pass 'Twitter Tax Break'

Now they have to decide whether to change the payroll tax

By Gerry Shih on April 19, 2011 - 6:26 p.m. PDT

San Francisco lawmakers approved the mid-Market "Twitter tax break" on Tuesday in a near-empty board chamber, drawing an anticlimactic close to a debate that had polarized the city for two months. The legislation freezes payroll taxes along the mid-Market corridor for six years, a move supervisors hope will keep Twitter's headquarters in San Francisco.

The Board immediately moved onto the next, thorny question: What should San Francisco do with the rest of its startups that are threatening to leave because of the city’s payroll tax?

Supervisor Mark Farrell introduced legislation Tuesday that would amend the payroll tax code to no longer consider stock options as employee compensation. Since 2004, the city has defined options as payroll to be taxed at 1.5 percent. But only now, as a handful of high-profile tech companies like Twitter and Zynga prepare for their initial public offerings, has the tax emerged as a concern.

In recent weeks a handful of companies including Twitter, Zynga, and Yelp have pressed city officials to amend the tax, saying they would rather relocate than stay in San Francisco and absorb a huge tax hit in the event they go public and their shares soar in value.

A study conducted by budget analyst Harvey Rose found that San Francisco was the only city in the nation that taxed stock options, Farrell said.

“The hard truth of the matter is San Francisco is a complete outlier on the issue that needs to be corrected,” Farrell told the board. “It’s not a minor tax or a little issue, it’s a major problem.”

04-25-2011, 07:08 AM	#1
peemovvie Join Date Oct 2005 Posts 561 Senior Member	San Francisco gives Twitter a tax break to keep it in the city I thought Californians loved taxes. What's up with this??? Why would these companies be so concerned with taxes when most Californians are in favor of them and want lots of government control over their lives??? A study conducted by budget analyst Harvey Rose found that San Francisco was the only city in the nation that taxed stock options. So? Something to be proud of, San Francisco. http://www.baycitizen.org/business/s...ter-tax-break/ San Francisco Supervisors Pass 'Twitter Tax Break' Now they have to decide whether to change the payroll tax By Gerry Shih on April 19, 2011 - 6:26 p.m. PDT San Francisco lawmakers approved the mid-Market "Twitter tax break" on Tuesday in a near-empty board chamber, drawing an anticlimactic close to a debate that had polarized the city for two months. The legislation freezes payroll taxes along the mid-Market corridor for six years, a move supervisors hope will keep Twitter's headquarters in San Francisco. The Board immediately moved onto the next, thorny question: What should San Francisco do with the rest of its startups that are threatening to leave because of the city’s payroll tax? Supervisor Mark Farrell introduced legislation Tuesday that would amend the payroll tax code to no longer consider stock options as employee compensation. Since 2004, the city has defined options as payroll to be taxed at 1.5 percent. But only now, as a handful of high-profile tech companies like Twitter and Zynga prepare for their initial public offerings, has the tax emerged as a concern. In recent weeks a handful of companies including Twitter, Zynga, and Yelp have pressed city officials to amend the tax, saying they would rather relocate than stay in San Francisco and absorb a huge tax hit in the event they go public and their shares soar in value. A study conducted by budget analyst Harvey Rose found that San Francisco was the only city in the nation that taxed stock options, Farrell said. “The hard truth of the matter is San Francisco is a complete outlier on the issue that needs to be corrected,” Farrell told the board. “It’s not a minor tax or a little issue, it’s a major problem.”
	Quote