Comment by nugget

I'm just an armchair economist but it seems obvious that this payroll tax (especially when combined with minimum wage hikes) will further incentivize companies to relocate entry level workers to lower cost of living areas, e.g. Yelp customer service moving to Phoenix. Companies will keep their most skilled (and highest paid) workers in San Francisco because access to those workers is why they HQ there in the first place. As a result, the middle class continues to hollow out and inequality is actually worsened, which likely puts additional pressure on homelessness and the other problems they were trying to solve in the first place. I wonder if these politicians think about the unintended consequences of their proposals - whether they don't know, don't believe it to be so, or simply don't care.