Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Twitter Got A Big Tax Break To Stay In San Francisco. Jack Dorsey Now Says Its Future Is No Longer In The City.

Twitter Got A Big Tax Break To Stay In San Francisco. Jack Dorsey Now Says Its Future Is No Longer In The City.

As Twitter's home city nears a vote limiting new office space construction, the company may be forced to locate its workforce elsewhere.
Nine years ago, San Francisco gave Twitter a major, controversial tax break to stay in the city, locating the social media company’s headquarters in the bleak mid-Market neighborhood. But today, after taking the money, Twitter is putting San Francisco on mute as it plans to expand outside of the city.

“Our concentration in San Francisco is not serving us any longer and we will strive to be a far more distributed workforce,” Twitter CEO Jack Dorsey said on an earnings call Thursday. “We have to build a company that’s not entirely dependent on San Francisco.”

“Sounds like something Jack would say,” San Francisco Supervisor Aaron Peskin, a frequent critic of the tech industry and one of the leaders of the board’s progressive faction, told BuzzFeed News. “Apparently, the only thing serving Twitter anymore is Donald Trump.”

When they introduced the Twitter tax break, politicians hoped it would revitalize the neighborhood and attract jobs to a city whose unemployment rate was several multiples above where it is today, nearing 10% in 2010.

As the city’s politics lurch leftward — unlike when the tax passed, Peskin’s faction now controls of the Board of Supervisors and the city will vote on a proposition limiting new office space construction in March — Twitter, which took tens of millions in tax incentives throughout the decade, is planning to spread its workforce across the globe. In recent years, the centrist policies championed by former mayors like Ed Lee have given way to an anti-corporate wave, including the election of a democratic socialist to the board in 2019, mirroring a change in the national Democratic party.

After the tax break expired as planned last May, there was little appetite in San Francisco to renew it. San Francisco voters also approved a ballot measure in 2018 that required companies with more than $50 million in annual revenue to pay an additional tax to help people who are homeless. Dorsey opposed the measure, saying it treated companies like Dorsey’s company Square unfairly compared to ones like Salesforce, whose CEO Marc Benioff backed it, and Square later sued the city over its tax bill.

Critics of Twitter’s tax break saw Dorsey’s comments on Thursday as a validation of their skepticism. “I'm not surprised to hear that they're not really prioritizing their presence in San Francisco,” David Campos, a former San Francisco supervisor who voted against the tax break when he was on the board in 2011, told BuzzFeed News. “I'm not surprised that they essentially benefited from a very generous tax policy by city government, only to turn around and say San Francisco is not a priority for us. Unfortunately, it's what many of us suspected.”

Ted Egan, San Francisco’s chief economist, said Dorsey’s statement was somewhat concerning. “It reinforces the fact that the city's had a challenge in keeping large companies in the city as they grow,” he told BuzzFeed News. To Egan, it was not a complete surprise, given the high price of doing business in the Bay Area, which faces skyrocketing housing costs. “It's not unexpected that a major tech company would choose to have a distributed workforce or grow globally, particularly when the cost of living differences between San Francisco and many other places are continuing to widen.”

Despite Dorsey’s announcement, it’s unclear how fast Twitter’s employee base will shift from the city, and finding the type of workers it’s looking for in other places may be its biggest challenge: Once an economic cluster is established, it’s hard to move. “This issue has been brought up many times in the past. But it's a very niche labor market,” Enrico Moretti, a University of California, Berkeley, economics professor and the author of The New Geography of Jobs, told BuzzFeed News. “Ultimately, the type of occupations that lend themselves to remote work is not huge.”

Twitter doesn’t predict a mass exodus anytime soon. “San Francisco will be where the majority of our employees will be based for the foreseeable future,” a Twitter spokesperson told BuzzFeed News following Dorsey’s comments. “There's incredible talent around the world and we have to be able to work in a way that supports them as employees regardless of where they live, especially when they want to build careers in their own communities.”

Not all observers were opposed to the move. “There's always blowback,” said Anna Auerbach, cofounder and co-CEO of Werk, an analytics company that enables flexible work. The benefits, she said, will outweigh the costs. “It's going to help Twitter attract a really incredible talent pool, a really diverse talent pool, and my hunch is, they're going to see some really fundamental changes when it comes to productivity improvements and culture and retention.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×