[tzs]

How so? Based on the way the payroll tax works there (assuming the article is accurate), I can't see why any startup or rapidly growing business would want to be in San Francisco.

It doesn't seem to offer any real advantages over, say, Palo Alto or Sunnyvale or Cupertino or San Jose, and the tax situation sure seems like a significant disadvantage.

[juiceandjuice]

Because young employees want to live in SF, not Cupertino, Palo Alto, Sunnyvale, or even San Jose.