San Fran Tech Companies Get Tax Break
The city of San Francisco, California approved a tax holiday that will save Zynga, Yelp, and other Internet companies within the city, millions of dollars. The officials are hoping to preserve San Francisco’s image as a tech center, even though most of the major Silicon Valley companies (Google, Apple, Intel, and HP) are in the San Jose area.
Opponents of the deal call it a payoff to the already-wealthy companies. Under San Francisco’s payroll tax, companies with over $250,000 in payroll are required to pay the city 1.5% of the total employee compensation each year. This compensation includes salaries, bonuses, and stock gains. San Francisco’s payroll tax is the only one of its kind in all of California.
The new ordinance came just a month after Twitter threatened to pack its bags and leave the city, and due to the threat, received a tax break. Zynga, an online gaming company threatened to do the same. Although many companies (mainly startups) will not experience much of a benefit from the city’s new tax break, it is nice to see major tech companies take a stand for themselves. I propose that the board of directors extend an invitation to the major execs of these huge tech companies for a bowl of hot clam chowder in the San Francisco district.