San Francisco proposes tax cut for Twitter

Tech company Twitter was threatening to move out of San Francisco because of the high taxes the city levies. San Francisco mayor Edwin Lee has offered Twitter a deal: Stay in San Francisco, and we’ll give you a tax break. San Francisco is one of America’s most vibrant cities. But in the heart of San Francisco, the Central Market and Tenderloin areas are blighted. Twitter will have to move in with some interesting neighbors, such as the Burning Man. But in return, they will save about US$22 million a year in taxes. However, opponents fear that the tax break for Twitter might set a bad precedent for other businesses. But with businesses such as GE paying hardly any tax and Internet giant Google only paying 6%, maybe not paying taxes is a sign that you’ve made it as a company in the US.
twitter San Francisco proposes tax cut for Twitter (Next Media Animation TV)

  • r_wills

    god forbid that any corporation or corporate bureaucrat have the moral sensibility to pay a fair share of taxes towards all the public services they rely upon to minimize their investment costs.  what, you say a corporation can’t have a sense of morals, it is soulless and autonomous of ethical considerations?  Then how can a corporation legally be considered as an individual entity? besides of course the thru the purchase of corrupt judges and politicians.
    Even the internet is not “free” of costs.  It’s just that the funds for constructing and supporting the global web are hidden in the budgets of thousands of colleges and universities.  So you and I get to pay for those “twits” getting wealthier and wealthier, pillaging public resources.

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  • max

    The tragedy is that the truly local guys have to pay the tax.  Twitter can move out, but a hotel, shop, or diner cannot…

  • Michael

    As frustrating that the situation is with corporations finding tax havens, this is a completely different situation.  San Francisco is the only city in the state of CALIFORNIA which has a payroll tax (1.5%).  This deal would exempt new employees HIRED.  So this is a disincentive for companies to hire future employees, thus preventing new jobs.  The company will still contribute through sales tax and other means, and there is a community benefits plan that will help revitalize the surrounding neighborhood and attract other businesses and activity in the area.  This is a smart deal, sorry NMA but you’ve got this all wrong.  Why should a new company like Twitter shoot itself in the foot and pay $22 million dollars in taxes over 6 years, when all they have to do is move 10 minutes down to Brisbane and pay nothing?