In 140 characters (or less): Twitter is staying put in San Francisco. At least for now.
A split Board approved a payroll tax exemption in San Francisco meant to keep Twitter and similar companies in the City by The Bay. The vote means that companies who agree to move to or remain in the less desirable Mid-Market and Tenderloin districts will be exempt from paying the payroll tax on new employees for a period of six years. The payroll tax is currently imposed on companies with payrolls over $250,000; the tax rate is 1.5% of compensation, including stock options.
There’s still one more hurdle to clear with another vote expected next week. But the 8-3 vote at the Board on yesterday indicates that won’t be a problem.
The tax deal is likely to save Twitter up to $22 million over the six year period; the company had estimated that, together with rents and other expenses, staying in San Francisco would cost $30 million.
Opponents of the bill, however, have little sympathy for the billion dollar company, noting that many public employees are facing layoffs. Cuts to safety services, such as fire and police, are also on the table as San Francisco struggles to balance the budget.
Absurd. It’s just another way that the system is rigged against small businesses, who are too small to be able to pull the strings to get these types of perks. I t amounts to tax the small guy, give the big guys a free ride.