Today, the city of San Francisco Board of Supervisors in a split 8-3 vote, approved a proposed tax break for growing companies, but especially Twitter, if the companies move or stay in the Mid-Market and Tenderloin districts west of downtown.
“Central Market and the Tenderloin have been burdened with high vacancies and blight for decades,” said Mayor Ed Lee. “[T]he payroll tax exclusion is a powerful tool that’ll help us bring in much-needed jobs, services and retail.”
For the tax break’s supporters, it’s about revitalizing broken neighborhoods with the presence of some of the world’s most influential tech companies.
“It’s a first step forward of really trying to bring back these neighborhoods and it’s a first step forward for making sure that we get our economy back on track,” said Board of Supervisor President David Chiu.
“As a result of this week’s vote, Twitter’s payroll taxes will be capped at their current level for the next six years, meaning it’ll only pay for existing employees, not new ones. This’s significant for Twitter because the company currently employs only around 350 people but plans on expanding aggressively over the next few years, adding 2,000 more jobs. Over the course of six years, the microblogging could save $22 million in tax expenses,” Vator News reported.
It’s not necessary to explain why that’s great for Twitter.
With all these companies, it’s a fine line between encouraging them to grow freely and also using their growth to help the city improve. While some are disappointed that Twitter will be paying San Francisco less in taxes, supporters point out that the company would have left otherwise, cutting out jobs and any taxes at all.
[Via: Vatro News]