Leading the Way in Innovation and Economic Opportunity

San Francisco has never been a low-tax environment in which to do business. Nor was it one of the less burdensome cities when it came to red tape. Nevertheless, for decades it has been a magnet for innovation across so many areas—attracting startups and providing an innovative environment for companies reimagining themselves. The city dependably created economic opportunity and generational wealth at a historic scale.

In the past few years, however, San Francisco has experienced some major stressors to its continued financial health. The pandemic brutalized major sectors ranging from banking to tech to tourism. The city hasn’t offered enough relief, such as a much reduced tax burden or a decrease in bureaucratic hoops.

Today, small businesses are often so mired in red tape as they attempt to navigate the city’s complex permitting regulations and fee structures that many just give up. Bigger companies, meanwhile, have been slammed by rising office rates, employees reluctant to commute again or newly priced out of the local housing market, and increased business taxes—all of which not only halt their growth and innovation, but cause them to want to take their business elsewhere.

In recent years, they’ve experienced no shortage of enticements. Many companies that were once mainstays of the San Francisco economy have relocated their headquarters to such low-tax meccas as Austin, Las Vegas and Seattle.

The further loss of such companies could create a massive drop in revenue, which would cut into funding services that the city needs more than ever.