Tuesday, March 29, 2011

The Screwing of the Un-Hip, San Francisco Style

The Peoples Republic of San Francisco is the only city in California that taxes stock options. It is part of the city's payroll tax.

This is causing many hip, with it, firms to consider moving out of the foggy city.

Several tech companies, including Twitter, Zynga and Yelp, have told city officials that San Francisco's tax code makes it financially unfeasible for them to stay in the city, reports the San Francisco Chronicle.

It appears the city is going to do something about this. San Francisco Supervisor Ross Mirkarimi is calling for a two-year moratorium on taxing the stock options, but not a moratorium for everyone.

The temporary tax break would only apply to technology companies that are located anywhere in San Francisco, have 100 employees or more and are not traded on a public stock exchange. There are other proposals out there, but the Mirikarimi proposal captures the essence of this elitist city.

If you are part of the elitist crowd, you don't have to worry about mad dog, incentive killing taxes, or any other rules for that matter. If on the other hand,  you are not part of the in-crowd, say a property owner, you are nothing but a Capitalist Pig only good for turning into bacon (if these Regressives actually ate bacon) or to be taxed to death and prevented from constructing the type of structure you want on your property.

Operations that can turn a man into a woman are big here. Turning a diliapidated building into a modern structure is not.

I really think it's the fog.


  1. This is only half-true: hip, with-it firms in the Bay Area generally want nothing to do with San Francisco, and locate down in Silicon Valley. The hippest, most with-it outfits are start-ups, and most of those (a) would never meet the "100 employees" standard for this break, and (b) would never move to the City because they pay consultants in stock.

  2. The "regressives" are really nothing more then dishonest socialists. They like and want the multitude of things and choices capitalism provides, but they want it without the capitalist system.

  3. Actually, Bob, they are only willing to eat turkey bacon.

  4. There are no surgical operations that can turn a man into a woman.

    There are only ones that can turn a man into a mutilated man who pretends to be a woman.

  5. "Regressives." I like it. I think I will start referring to all "Progressives" as "Regressives." Thanks Mr. Wenzel.

  6. Not all progressive policies are regressive - some are just naive. We need to label them properly and separate the Wilson's from the Debs'.

  7. "I really think it's the fog."

    Well, Seattle has its share of fog, but no state income tax (despite Bill Gates, Sr.'s and Bill Gates, Jr.'s best efforts in 2010). Come on up to Washington--we've got plenty of room here!

    Deb in Aberdeen, Washington

  8. There are three absolutely necessary tax policy changes.
    1. stock transaction tax - this discourages destructive activity like high speed trading and speculation and would require the banksters to fund their own bailout.
    2. tax capital gains at the same rate as income which people have worked for. The capital gains preference has not worked to encourage productive investment. If it did the real unemployment rate would not be over 20 percent. Investors are not fulfilling their side of the bargain when these rates were established.
    3. 100 percent inheritance tax. Everyone should have to make it on their own effort. They should not be entitled to support their whole life based on who their grandmother had sex with.

    There is nothing wrong with taxing stock options the same as any other income. It is all salary.

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