3 ms·

I literally spit on my keyboard: A yes vote is a vote in favor of authorizing the city and county of San Francisco to fund housing and homelessness services by

by Zhenya 8y ago

I literally spit on my keyboard: A yes vote is a vote in favor of authorizing the city and county of San Francisco to fund housing and homelessness services by taxing certain businesses at the following rates: 0.175 percent to 0.69 percent on gross receipts for businesses with over $50 million in gross annual receipts, or 1.5 percent of payroll expense for certain businesses with over $1 billion in gross annual receipts and administrative offices in San Francisco If your business is low margin, high gross collectibles, this will KILL your business. Transaction and retail companies will get murdered.

CydeWeys 8y ago
It's very strange to see a tax written against gross income, not net income. When did this start becoming a thing?
- refurb 8y ago
  Weird indeed. What happens if the company had $100M in revenue, but a $10M loss? Are they expected to take out a loan to pay the tax?
  - toyg 8y ago
    Taxes can be deferred / delayed if the taxman agrees.
  - rchaud 8y ago
    They work with the taxman to figure out a payment plan over time. Tax payments can be deferred under GAAP, and also by the IRS if the entity isn't able to pay.
- toyg 8y ago
  Probably when corporations started being a bit too good at siphoning profits to tax havens, waiting for the periodic amnesty to repatriate them. Several of the best companies in the world at this game, are headquartered in California.
- mstrum 8y ago
  There was an initiative in Seattle to charge a head tax, with one of the likely reasons to go after companies like Amazon that put a lot of what would be profit back into R&D, keeping the technical profits low. There was a lot of pushback from the Seattle community since the initiative was created and pushed from the city council themselves and not the people and thankfully it was defeated. Sounds bites like 'TAX AMAZON!' sound very good to people who think you're taxing Amazon specifically, but after people see that it's actually taxing a lot of other companies including small-ish companies it turns out to be a not-so-good proposition.

by Zhenya 8y ago

CydeWeys 8y ago

It's very strange to see a tax written against gross income, not net income. When did this start becoming a thing?

refurb 8y ago
Weird indeed. What happens if the company had $100M in revenue, but a $10M loss? Are they expected to take out a loan to pay the tax?
- toyg 8y ago
  Taxes can be deferred / delayed if the taxman agrees.
- rchaud 8y ago
  They work with the taxman to figure out a payment plan over time. Tax payments can be deferred under GAAP, and also by the IRS if the entity isn't able to pay.
toyg 8y ago
Probably when corporations started being a bit too good at siphoning profits to tax havens, waiting for the periodic amnesty to repatriate them. Several of the best companies in the world at this game, are headquartered in California.
mstrum 8y ago
There was an initiative in Seattle to charge a head tax, with one of the likely reasons to go after companies like Amazon that put a lot of what would be profit back into R&D, keeping the technical profits low. There was a lot of pushback from the Seattle community since the initiative was created and pushed from the city council themselves and not the people and thankfully it was defeated. Sounds bites like 'TAX AMAZON!' sound very good to people who think you're taxing Amazon specifically, but after people see that it's actually taxing a lot of other companies including small-ish companies it turns out to be a not-so-good proposition.