Killing the Goose

(Economist illustration)

Jean Baptiste Colbert:

The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest amount of hissing.

The City of San Francisco imposes a multiplicity of business taxes. Some supervisors want to add an IPO tax to grab some boodle from individuals who benefit ("stock-based compensation") from an initial public offering.

The San Francisco Chronicle thinks this is A Tax Too Far:

IPOs by their nature are one-time shots, meaning the revenue isn’t dependable. Firms already hampered by the high cost of operations here will have another reason to expand or relocate elsewhere. Tacking on a tax needs more explanation than righteous anger over lopsided incomes. The need for a two-thirds ballot box approval is a major obstacle.

San Francisco should take a long look at itself. The city’s budget is due to pass the $11 billion mark, an ever-rising number fueled by tax collections from sales, real estate transfers and payrolls, much of it from the tech industry. The jobless rate is 2.1%, a figure never reached before. A big-business tax to improve homeless services and expected to yield $300 million annually won an overwhelmingly majority, though it’s under legal challenge. Throwing on a new tax makes no sense in a roaring economy and atmosphere of awareness and change.

San Francisco isn't just plucking the goose, it's killing it.