San Francisco is considering a new ‘IPO’ tax on technology companies to help “spread the wealth” as the city continues to struggle with rising crime, rampant homelessness, public drug use, and soaring real estate prices.
“City leaders here are proposing to more than triple a tax on stock compensation in a bid to use revenue from a wave of public offerings by tech companies to address concerns about growing wealth disparity,” writes the Wall Street Journal.
“The so-called IPO tax would raise the levy on corporations for stock-based compensation to 1.5% from the current rate of 0.38%. That would restore the rate to its level in 2011 when the city, pulling out of recession, cut it as part of a change in its tax structure intended to keep companies from leaving,” adds the report.
The tax scheme is similar to other cities like Seattle that sought to tax large technology companies based in the region -such as Amazon- to pay for new programs aimed at tackling the region’s homeless crisis.
Read the full report at the Wall Street Journal.