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Source? I have yet to see a single US government levy taxes as a function of how many employees work within their jurisdiction.

I don’t even understand how the logistics of that would work, nor if it would be legal, and especially politically unpopular since now small businesses are getting hit with taxes simply for being small.

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This is a state thing, usually some N-year break an payroll taxes if they have M people working in the office. These deals are really about butts-in-seats unfortunately, and there is usually a non-trivial clawback clause.

Source: I was hired by a well-known hyperscalar cloud company that didn't want to send me to HQ, but wanted to place me at some random remote satellite offices. I looked into why, and it was this payroll / other tax break by the locality. (I sorta forced them to send me to HQ, as I don't deal with the heat / humidity well in the remote locations, which were in the US south).

That is not an example of:

> threatening higher taxation if they don’t return to office.

Yea this seems like an urban legend. I’d love to see a link showing this happening.

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