January 27, 2013

CRONY CAPITALISM? “Twitter and six other San Francisco tech companies are set to receive sizable tax breaks from the city in exchange for non-binding promises to make charitable contributions totaling, in many cases, just tens of thousands of dollars — along with promoted tweets for local groups.”

The tax breaks are pretty big: “The tax breaks exempt companies in the Mid-Market neighborhood from the city’s 1.5 percent payroll taxes on new hires for six-years. Twitter tax breaks are estimated to be worth $22 million over six years.”