By Travis H. Brown at Forbes

July 11, 2016

San Francisco – now known better for its high-tech prowess than its iconic trolleys and foggy bay – appears to be facing a tense battle between technology giants and politicians. Tech giants like Twitter, Salesforce, Square, and Uber have injected billions into the Bay Area economy, yet their positive impact on the region is being met with some skepticism. The city is now considering a proposal that would require these technology companies to pay a 1.5 percent payroll tax, the revenue from which would be used to combat the city’s growing homeless problem.

This “tech tax,” as the proposal quickly came to be known, specifically targets tech companies and startups that generate $1 million or more each year in gross receipts (a fairly low threshold when one considers that “gross receipts” also includes earned interest). Right now, the proposal appears to be a long shot for the November ballot, but its mere existence highlights the tension between some San Francisco residents (and legislators) and the tech companies that have become so successful there.

Read more at Forbes