SF Voters Pass “Overpaid Executive Tax”

In the recent election, San Francisco voters passed Proposition L, aka the “Overpaid Executive Tax” which will charge any company in San Francisco an addition surcharge if their top executives earn 100 times more than the typical worker.

San Francisco is the first U.S. city to tax both public and private businesses if their top executives are “overpaid.”

The measure, which was passed by 65% of the votes is expected to bring in up to $140 million a year (assuming, of course, that it doesn’t drive business out of the city).

A “yes” vote supports authorizing an additional tax of 0.1%-0.6% of gross receipts or 0.4%-2.4% of payroll expenses for businesses in which the highest-paid managerial employee earns more than 100 times the median compensation of employees, generating an estimated $60-140 million per year.

Read more about Proposition L on ballotpedia

San Francisco passed Prop L–a first in the nation Overpaid Executive Tax (CEO tax) on any corporation that pays their top executive over 100x their typical local worker.

With over 65% of votes, it won in nearly every precinct.

Voters are demanding we take action on inequality.

— Matt Haney (@MattHaneySF) November 4, 2020