Bay Space Council Warns Santa Clara About Head Tax Proposal – Santa Clara Information On-line

By Robert Haugh

The Bay Space Council (BAC) is weighing in on a proposed head tax in Santa Clara.

The business-friendly group is elevating main issues concerning the tax and its influence on Santa Clara companies.

“We perceive your want to hunt extra income from native companies, significantly by way of some sort of worker head tax,” wrote Jim Wunderman, BAC’s President & CEO in a June 6 letter to the Mayor and Metropolis Council.

“Nevertheless, we have now main issues and want to warning you concerning the influence of such an strategy and potential  penalties.”  

In line with the group’s web site, greater than 330 of the most important employers within the area are members of the BAC.

The pinnacle tax proposal has been championed by Councilman Raj Chahal. He stated he’s needed to create one since he took workplace in 2019.

Final 12 months, Chahal singled out three corporations that he desires to pay thousands and thousands extra with an worker head tax. These corporations are Nvidia, Intel and AMD. He stated they’ve a mixed market cap of practically a trillion {dollars}.

“They will simply afford a couple of million {dollars} right here and there,” stated Chahal. “It’s nothing. It’s peanuts.”

On the Council’s February eighth Precedence Setting Assembly, Chahal expanded his checklist to incorporate different main corporations that also needs to pay much more:

  • Agilent
  • Arista Networks
  • Analog Units
  • Utilized Supplies
  • Citrix
  • Marvell
  • Palo Alto Networks
  • Service Now

Chahal additionally shared a spreadsheet itemizing their market caps. However the BAC disagrees with Chahal.

“We’re in a time of nice uncertainty in our area, significantly in our area’s enterprise group. Nearly each giant employer is reevaluating their long-term strategic development plans, the place they need to find staff and their subsequent want for workplace house, and will they even want any bodily house in any respect on this period of distant work,” Wunderman wrote.

“Coverage choices made at present by native governments are having extra affect than ever on the place corporations selected to name house and we have now sadly witnessed an incredible many iconic Bay Space corporations select to relocate folks and/or headquarters in simply the final two years due to the prices and challenges of working on this area.” 

Wunderman cites Oakland as a case research.

“In latest weeks the Metropolis of Oakland, confronted with comparable fiscal challenges proposed tax will increase on their enterprise group that will undoubtedly have precipitated an exodus of employers and tax revenues from that Metropolis.”

“We have been capable of work with the Metropolis, present an financial evaluation of the flawed proposal and finally helped dealer a compromise answer that met town’s wants with out adversely impacting financial development. A ‘win win’ for all involved.”

It’ll be attention-grabbing to see within the coming weeks if Chahal convinces his Council colleagues to place the pinnacle tax on the poll.  

Then it’ll be attention-grabbing to see if the BAC and main employers oppose it.

Keep tuned. This can be a creating story.

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