Apple staring down possibility of new per-employee tax in Cupertino
Apple's home city of Cupertino is considering a per-employee tax to generate funds for city infrastructure, and the tech giant might be among those companies impacted by the regulations.
Cupertino's town manager David Brandt said to the San Francisco Chronicle that the city is modeling its new effort on one in Google's Mountain View and another that was just imposed in Seattle. In the latter, businesses that make $20 million or more a year are charged $275 per employee.
The Mountain View proposal which would be levied on Google isn't a linear increase per head. Google's share would be around $10 million with deductions applied to companies that invest in the city's facilities and mass transportation systems.
The effort isn't a done deal, though. In both Mountain View and Cupertino, the city councils would need to approve the measure before it goes to the voters -- who could shoot it down as well.
Increased taxation in the form of a per-person tax has its opponents.
"While it might feel good for some to take a whack at big job creators," Bay Area Council CEO Jim Wunderman wrote, "Such taxes will only undermine our region's long-term economic health and competitiveness."
Proponents include Councilman Barry Chang. He pushed for a headcount tax when he was mayor of Cupertino in 2017, angling for a $1,000 per head tax on large companies. The effort was staunchly opposed and ultimately failed.
Apple has not responded to requests for comment on the matter.
Cupertino's town manager David Brandt said to the San Francisco Chronicle that the city is modeling its new effort on one in Google's Mountain View and another that was just imposed in Seattle. In the latter, businesses that make $20 million or more a year are charged $275 per employee.
The Mountain View proposal which would be levied on Google isn't a linear increase per head. Google's share would be around $10 million with deductions applied to companies that invest in the city's facilities and mass transportation systems.
The effort isn't a done deal, though. In both Mountain View and Cupertino, the city councils would need to approve the measure before it goes to the voters -- who could shoot it down as well.
Increased taxation in the form of a per-person tax has its opponents.
"While it might feel good for some to take a whack at big job creators," Bay Area Council CEO Jim Wunderman wrote, "Such taxes will only undermine our region's long-term economic health and competitiveness."
Proponents include Councilman Barry Chang. He pushed for a headcount tax when he was mayor of Cupertino in 2017, angling for a $1,000 per head tax on large companies. The effort was staunchly opposed and ultimately failed.
Apple has not responded to requests for comment on the matter.
Comments
Bet Apple wishes it didn’t build its spaceship there now.
We as citizens need to stop relying on the government to fix problems that our communities can and should deal with—for instance caring for the poor (among many other things).
I distain additional taxes as much as anyone but I’ve also been impacted by company local relocations that crossed city boundaries that ended up costing me out of pocket nearly 10x the $275 per year amount that’s being thrown out in this case. Unlike a company, I couldn’t pass along additional fees to anyone or roll it into my cost of doing business.
This is all part and parcel to the negotiations that are always occurring between companies and municipalities. If the companies want to garner public sympathy then let’s get all the sleazy cards out on the table and see what’s really going on with these public-private relationships. My pessimist perspective is that no matter who “wins” this fight it will be the regular folk, employees, and taxpayers who ultimately end up footing the bill.
Anyone want to have a new NFL stadium or Amazon HQ2 in their town?
That's enough money to pay for a year of school for a few hundred students.
How would it be fair to demand, from a tiny business that makes a small profit, the same amount of tax as is demanded from a huge 20-MILLION dollar business?