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by jeffreymcmanus
5523 days ago
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You asserted that the tax is somehow driving public companies out of SF, so you get to back up your assertions first. Pointing out that Twitter threatened to move to Brisbane doesn't count since it didn't actually happen. Bear in mind that every big company attempts to squeeze concessions out of the cities they're located in when their leases expire. If you think the Twitter in SF situation is unique, you're profoundly naive about how big companies and city governments interact. SF is attractive to startups in large part because it has an educated population. As the frenzy to roll back taxes continues to take its toll on education (both K-12 and the public universities), that attractiveness will diminish. Technology companies will do just fine in this environment; they'll simply move their operations to states and countries with better education systems. But when the education system in California utterly collapses, it's the employees of these companies who are going to be left wondering what happened. The phrase "it will become literally impossible for fast-growing startups to stay in the city" is utter nonsense. If that were true, why is there is a single startup in the city today? |
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Because that section of the tax code is not enforced.
> If you think the Twitter in SF situation is unique
We're not talking about the Twitter situation. Twitter extracting concessions from the city for its normal payroll tax obligations. For the record, I'm against that.
We're talking about a completely different situation from Twitter, the issue with a company being taxed on employees' personal stock options gains. This has nothing to do with the Twitter tax break.
> You asserted that the tax is somehow driving public companies out of SF, so you get to back up your assertions first.
I currently run a startup that would not be able to stay in the city of SF if we went public. In a few years if we start going down that path, I really hope that this tax is no longer in place or I will be forced to move the company out of the city, which I don't want to do.
Not sure what else I can provide you to back me up on that one, besides a letter from our accountants saying the same.