Wanting to keep the tech industry in town, the city of San Francisco Board of Supervisors with an 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.
Twitter will not have to pay city taxes for new employees hired over the next 6 years, The company has about 650 employees at the facilities in the area but are looking to hire as many as 2,000 more employees in the coming years.
"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 will only pay for existing employees, not new ones. This is 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.
Keeping the growing tech companies in the area will stop the loss of businesses and jobs in the area, the supporters argue. While those against the decision think it is against social responsibility companies should have towards their community.
Hey, they could relocate to Ireland and pay pennies on the dollar for most of their tax responsibilities.