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SF Voters Pass “Overpaid Executive Tax”

High paid CEOs beware. 65% of San Francisco just voted for a new tax that might generate $140 million/year for the city
By - posted 11/6/2020 No Comment

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