Photo: Kevin Krejci via Flickr
Ron Conway has actively encouraged the San Francisco tech community to get involved with the government. Yesterday his hard work paid off.The city of San Francisco voted in a new tax policy Conway supported, Proposition E. Proposition E won by a landslide with 70.6% of the votes, and it could save tech companies there millions of dollars.
Before Proposition E, companies were paying payroll taxes on every job they created, even if they weren’t generating much revenue. Proposition E replaces payroll taxes with a gross receipts tax.
In other words, companies will now be taxed on total gross revenues instead of eating costs for every person they employ.
“Tax policy over the past decade has penalised job creation by taxing jobs instead of profit,” Conway explained on TechCrunch. “Proposition E incentivizes job growth, hiring, and economic investment which has a multiplier effect that generates millions of dollars in revenue for San Francisco.”
Conway isn’t stopping with Proposition E. He’s adamant about getting the tech community more involved in public policy. Earlier this year he created sf.citi to get 350 tech companies more involved in San Francisco’s civic action.
“Gone are the days when the tech community can innovate and run their businesses in spite of government,” Conway says. “As we saw with the SOPA/PIPA debate, public policy has a direct and significant impact on startups and the investors who support them.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.