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Bring them to you but moving on -- back to the West Coast -- -- -- coast West Coast today's San Francisco.
Is the only city in California.
With the payroll tax but it looks like is sending a message to Twitter.
And it's employees that will keep them from penny -- it's really just in Liz MacDonald is joining Dennis and myself to explain.
What the city did here in the move it.
-- what they did was this was one of the only brain draining tax hikes and high definition of its kind and not only was -- a payroll tax.
That is the city was assessing was apparel tax that Tenet's stock options.
As that payroll as part of payroll and no other city in a million in RS federal government doesn't include it.
You know we have to sell the shares -- -- -- company -- or not that's right that's exactly right and so you know if there was slapping around these tech firms saying look -- -- gonna have to -- -- payroll tax.
They thought you know this a good way to raise revenue but now the city of San Francisco's backed down.
But the issue is you have to get this payroll tax cut if only if you move into the mid market -- the tenderloin district.
And -- Twitter sits there and Zynga and truly and other head high tech companies.
It is an issue though for other companies in the area like visa Wells Fargo and Charles Schwab -- they are welcome in Nalco crowding into this.
Tiny neighborhood to get this -- a tax -- I think that'll last for six years.
This is the break that they're getting so you know well how much gonna raise your hand it to million dollars from the -- tax cut but now I now know back at all yeah that's right Carol initially is Twitter -- threatened to say look we're gonna take a -- so -- get out of here.
And -- so we're gonna have 2000 workers coming into our headquarters new employees down the road.
Who could do more the way of consumer spending for the city wanted it more tax revenues that way.
I did it -- it.
If this happened Dennis this happened about a decade ago when even dot com -- in the Bay Area because these these kids are coming in there making forty grand a year whenever they're making and they're getting stock option grants for the for the company republic and the government came after them -- they got had.
With extra what the entertainment tax AMT I have to write mentally taxing.
Yeah I part of your workforce which is people that innovative companies let's understand that even this tax break.
You still have to pay the one point 5% payroll tax on all your existing employees and applies only to new hires now Twitter is expanding so much it's gonna say point two million in six years estimated but it's just on new hires and I think today -- can't just -- Help those -- right why don't you cut it for awhile and I play all of.
-- anywhere isn't really important point -- does that Alternative Minimum Tax is still to pay it.
If you exercise the shared some right if you exercise your options to get -- -- and -- -- -- -- -- right so you get hit it did so it's still annoying so you know I mean so is this an issue that you know companies and cities are gonna have to pay attention to sure.
You know Chicago for example late last year mayor Daley wanted to appear a tax cut but that went nowhere right because he's no longer in office all right well you know the -- -- -- whatever.
-- like about this is most times a Research Triangle of park in Raleigh north product you grant big tax breaks to businesses to get him to come your place I like the idea of grinning up payroll tax break footage which is a public employees.
They think they did Clinton -- I don't -- this is south of market it's integrated a sudden they think they can go south I ten miles.
And be out of this and yes that's right to bear -- how well I'll tell they can go to Berkeley but you know the other utility area he apparently had union protest -- in front of Twitter.
Corporate welfare or whatever but I think data to that getting in a losing his workers didn't lose a great company doesn't.
Those revenues right.
These are supposed to want to represent workers even non unionized workers I think unions care about represented all workers -- and so let's have a union oppose a tax break for workers that that really interest and well I think it's get a mansion and see what happens in essence a great fight to cover thank cancer -- a lot of Childs a very interesting story coming out of San.
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