Governments at every level always want their share of the pie. We see this all the time.
One of the latest jurisdictions to try to confiscate more wealth is San Francisco. The home of the many giant technology titans today, like Uber and Twitter, is considering a so-called “tech tax” in order to combat the city’s rising homeless problem.
According to the new proposal, the city would apply a 1.5 percent payroll tax against startups and tech companies that generate a minimum of $1 million in revenues. Apparently, this would immediately generate more than $100 million for the city government every year and would help create affordable housing and reduce the homeless count.
Well, at least that’s what they claim.
It’s unclear if the proposal would make it to the ballot in November.
The tech industry, and even San Francisco Mayor Ed Lee, say a tech tax is nothing but “scapegoating” an enormous industry. Micah Weinberg, president of the Bay Area Council Economic Institute, thinks such a tech “seeks to target and vilify tech companies.”
There was another voice of reason, too.
“This tax on technology jobs will not help our housing crisis,” said Scott Wiener, a member of the Board of Supervisors who opposes the measure. “It won’t make housing less expensive. It won’t reduce the number of homeless people. What it will do is chase away good-paying jobs and erode our tax base.”
Whatever the case, this is just the beginning of growing tensions between city residents and the tech firms. But these residents should be more enraged by the policies of the Federal Reserve that have raised the cost of living in San Francisco.
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