August 3, 2016
San Francisco’s proposed tech tax failed to receive Board of Supervisors’ Budget and Finance Committee approval. The measure sought to levy a 1.2% payroll tax on technology companies, and was envisioned as a solution to the city’s housing and homeless challenges.
Supervisors wanted to tax tech companies whose annual gross receipts exceeded $1 million. Proponents estimated the tax could eventually bring in $120 million in revenue that could be used to fund homelessness programs and build more affordable housing.
Critics, especially those in the tech industry, say the proposal was onerous by saddling one industry with solving a city’s larger problems. The implications included driving jobs out of San Francisco to more tax-friendly cities, and potentially damaging the local economy by throttling its major economic engine.
For comments, questions or concerns, please contact Dennis Kaiser