Earlier quoted context omitted.
CEOs are all just going to move out of San Francisco.
Maybe not a bad thing really
Yeah, let the city collect taxes from all the woke millenials who are neck-deep in student debt and the homeless...
San Francisco voters approve taxes on highly paid CEOs, big businesses
171–180 of 754 posts
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#172Earlier quoted context omitted.
That was fast. Unless this tax targets all of the bay area, the moving cost is not really much and your workers could still commute with a WFH option. Imo, San Jose is in prime position to build a real city with the possible exodus from SF.
> San Jose is in prime position to build a real city San Jose is already 25% bigger than SF. It's the third largest city in California after Los Angeles and San Diego.
Population essentially doesn't matter - people are talking about density here. For example, Phoenix is essentially an enormous suburb with giant malls, and you never hear of despite its population numbers. Boston is a small city with rich urban life that occupies an outsize role in the American psyche.
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#173The politicians have shown their hand by not designing this legislation to instead have companies pay their employees more. Why do I say that? It's currently cheaper to pay the tax than give the raises to your employees. So politicians have shown it's just a money grab _For the Government_ more than for the employees. Let's say I make $100 and the mean is $1. I'll pay 0.1% on tax payments.
It's a gross receipts tax on the business. E.g. so if you make $100, but the business has $1,000,000 in gross receipts, then 0.1% would be $1000 in taxes or 10x your total compensation. It's got teeth.
its a function of number employees and gross receipts. So
companies with more employees relative to gross receipts will have less incentive to increase wages.
also increasing the taxes by an additive 0.1 points (ie not multiplied by 1.001) disproportionately targets the lower gross receipts companies (such as restaurants, which would more than double their GR tax)
Still seems like bad policy
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#174This raises some interesting questions / side effects: 1) Companies may now have a direct incentive to have their lowest income earners be outsourced/contracted out to boost the median pay amount. 2) It was smart of them to include compensation such as stock options. However if a city starts to expect this income, it will all go away in recessions when CEO's stock options are not valuable. ie more money to the city i…
CEOs are all just going to move out of San Francisco.
It's about the business location not the CEO, but the point stands. I'm not that familiar with US law, but can't a business be incorporated anywhere in the US/California and still do basically all its activity in SF?
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#175Feels like a great way to encourage companies to leave the state. I left California many years ago. Every single part of my life is much better. Fiscally , romantically, mentally. SF over values how essential location is. With Covid it's clear remote work is the future, base the company out of Delaware and go full remote
This is the eternal objection to measures like this. But if every city and every state implement this, where will they go? And even if not, will they actually move? Will companies move? Time will tell but it seems very doubtful.
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#176Earlier quoted context omitted.
CEOs are all just going to move out of San Francisco.
And/Or move their companies too. Particularly all the "tech startups" that think they don't need physical office buildings anymore. For a lot of companies, SF is becoming difficult to justify. Well-intended ideas, not fully thought out, leading to unintended consequences... nothing really new for SF.
People in San Francisco have long been angry at tech workers for driving up prices... Driving them out may be on purpose!
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#177Earlier quoted context omitted.
Seems like the solution is directly compensate your CEOs very little and outsource executive services to a third party company that aggregates CEO compensation as a "contracted entity". This company will mostly be paying CEOs, so its median employee salary will be relatively high.
No board of directors anywhere is going to allow this.
Also depending on how this is structured, disregarded entities still consolidate to the individual so the measure could be flipped to be measured at the (trust ignored) individual level and it would still work.
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#178Earlier quoted context omitted.
Taxes tend to increase price levels, not reduce them. Costs are passed through to every level.
not 1-1. a personal wealth tax is not felt or distributed down lane. As long as it is not a company tax, it will not be directly pointed to the buyer.
> personal wealth tax is not felt
Yes it would be. A tax on salaries, would force companies to have to pay more to attract talent.
And these are additional costs that the company would have to pay.
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#179Don't CEOs only take $1 in salary anyways to keep their income taxes as low as possible and optimize for long-term capital gains through stock compensation instead?
Please at least try and read the article before commenting.
"Under the measure, gross receipts and CEO compensation will include money made from stock options, bonuses, tax refunds, and property, a caveat seen by many as a way to target the tech sector where CEOs are often compensated in non-salaried bonuses."
Re: San Francisco voters approve taxes on highly paid CEOs, big businesses
#180Earlier quoted context omitted.
Maybe not a bad thing really
Yeah, let the city collect taxes from all the woke millenials who are neck-deep in student debt and the homeless...
Or, move some of the obscene wealth away so the residents aren't gentrified out of existence, like they already have been? It won't just be CEOs, it'll be all the software engineers and the like too.