What makes Twitter and Zynga more deserving of tax breaks than any other company in the city? Honest question.
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San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
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Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#12What makes Twitter and Zynga more deserving of tax breaks than any other company in the city? Honest question.
As it says in the article, the problem is that the law covers not just salary but employees' stock gains as well. Twitter and Zynga uncomplainingly pay payroll tax on salaries like other companies, but the growth in their valuation combined with the fact that lots of employees get stock means that if the law were enforced, Twitter and Zynga would be hit with huge extra bills that other companies aren't.
Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#13There's no way Twitter moves to Brisbane. This is all bargaining and Arrington's a useful pawn.
Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#14What makes Twitter and Zynga more deserving of tax breaks than any other company in the city? Honest question.
I think it has more to do with the timing...in that, these are two companies that are going to be seriously affected by SF policies in the short term.
Why Twitter and Zynga might be more deserving than a non tech company is because of the relatively high salaries of their staff. This extra disposable income flows up and down to the rest of the city.
Look at it this way. You run a dry cleaning business. These are your choices:
Your city can give Twitter a tax break to open shop near you (the same city). This will hopefully bring you new customers and help your business. This can work very indirectly. Twitter Employee >> Diner Waitress >> You.
Or
Your city can give you a tax break, but not one to Twitter. Twitter goes to a different city (because you can always find someplace that has lower taxes). Now neither you nor the diner have new customers. In theory, the tax break that you get ends up being less money than the extra money you would have made had Twitter opened shop.
Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#15This entire article seems like rich people whining. Give me a break.
Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#16Oh, give me a break. I live in the supposed "tax free hooker area", and there are probably more hookers in the lounge of the Ritz Carlton than there are near the SF Furniture Mart (where the city wants Twitter to move). It's not like they're proposing to move them into an abandoned Happy Donut at the corner of 6th and Market. City hall and the Asian Art Museum are one block north. The opera, symphony and ballet are t…
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Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#17Oh, give me a break. I live in the supposed "tax free hooker area", and there are probably more hookers in the lounge of the Ritz Carlton than there are near the SF Furniture Mart (where the city wants Twitter to move). It's not like they're proposing to move them into an abandoned Happy Donut at the corner of 6th and Market. City hall and the Asian Art Museum are one block north. The opera, symphony and ballet are t…
The city, is just too enamored with itself, especially when the city is represented by the BOS. If SF wants to behave like this, (making a tax grab) they'll likely end up alienating what they're attempting to co-opt.
You hear SF trying to ride the coattails of stratups everywhere. SF the 'heart of silicon valley', 'the epicenter of entrepreneurship', etc, etc. but on the other hand, it s as if they want to do as much as they can to drive job-growing business away and let SF just become the kitchen/dining room to silicon valley.
Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#18I'm probably a "fecking eejit," but what exactly is so stupid and ridiculous about the quote "Who are the [Twitter] investors? Probably some of the wealthiest people in this country. And we are giving them more wealth."?
I mean, would the tax really hurt Twitter or Zynga? This stuff is just kind of disheartening. Oh no, your multi-billion dollar massive success of a company might lose a couple mil to taxes, better throw a fit or pack up and move to a new city.
Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#19Oh, give me a break. I live in the supposed "tax free hooker area", and there are probably more hookers in the lounge of the Ritz Carlton than there are near the SF Furniture Mart (where the city wants Twitter to move). It's not like they're proposing to move them into an abandoned Happy Donut at the corner of 6th and Market. City hall and the Asian Art Museum are one block north. The opera, symphony and ballet are t…
This is the same game of chicken as played between sports teams and municipalities. It's interesting because it's highflyin startups instead of the New York^W^W San Francisco Giants, but the outline is the same.
Muni wants to keep tax base and halo effect, but maybe also wants an extra cut of the upside. Startup wants to expand, but also establish a base of operations. Everyone wants something and has a backup threat just in case. The dance ensues.
SF has some interesting tax policies. I had a startup in SF lo so many years ago. Our total capitalization was $30K. We spent about $15K (on equipment and rent, no salaries) total before shutting down. A few months later SF City/County tried to collect a /$69K/ payroll tax bill based on... well, I never figured out what. I sent them a letter + documentation and never heard about it again.
Re: San Francisco Doing Everything It Can To Drive Zynga And Twitter Away
#20This is likely to be a political battle between the progressive members of the Board of Sup and what former Mayor Newsom had apparently set up with Twitter.
Newsom had always focused on developing and growing high tech companies in SF to increase jobs and revenue for the city. On the other hand, certain members of the Board strongly believe in taxing our way out of the deficit. As a startup founder in SF, it's sad that I may one day have to deal with this.