This is the same game of chicken as played between sports teams and municipalities. It's interesting because it's highflyin startups instead of the New York^W^W

This is the same game of chicken as played between sports teams and municipalities. It's interesting because it's highflyin startups instead of the New York^W^W San Francisco Giants, but the outline is the same. Muni wants to keep tax base and halo effect, but maybe also wants an extra cut of the upside. Startup wants to expand, but also establish a base of operations. Everyone wants something and has a backup threat just in case. The dance ensues. SF has some interesting tax policies. I had a startup in SF lo so many years ago. Our total capitalization was $30K. We spent about $15K (on equipment and rent, no salaries) total before shutting down. A few months later SF City/County tried to collect a /$69K/ payroll tax bill based on... well, I never figured out what. I sent them a letter + documentation and never heard about it again.