dan_bgblue
11-06-2020, 04:48 PM
San Francisco voters target income gap with 'Overpaid Executive Tax' (https://www.foxbusiness.com/lifestyle/san-francisco-voters-approve-overpaid-executive-tax)
San Francisco voters overwhelmingly approved a tax measure this week penalizing major corporations whose CEOs are paid far more than their average workers, a levy meant to narrow an income gap that has widened for decades.
Under Proposition L -- otherwise known as the "Overpaid Executive Tax" -- San Francisco companies will be forced to pay an extra 0.1% surcharge on their annual business tax payments if their top executive earns 100 times more than their average worker.
‘OVERPAID EXECUTIVE TAX’ GOING TO VOTE IN SAN FRANCISCO IN NOVEMBER
The wider the gap between the top executive and workers, the higher the surcharge will be. For example, if a CEO makes 200 times more than the average employee, the surcharge increases to 0.2%, and 300 times gets a 0.3% surcharge.
Critics called the surcharge a blatant attempt at redistribution of wealth and said it was poorly timed.
“The middle of a pandemic-fueled shutdown is the wrong time to raise taxes,” said Jim Wunderman, president and CEO of the business advocacy group Bay Area Council.
However, the author of the measure, city supervisor Matt Haney, had argued that it's a necessary step as cities around the country prepare for another spike in coronavirus cases. He noted that the measure would raise over $140 million every year, allowing the city to hire hundreds of nurses, doctors and first responders.
San Francisco voters overwhelmingly approved a tax measure this week penalizing major corporations whose CEOs are paid far more than their average workers, a levy meant to narrow an income gap that has widened for decades.
Under Proposition L -- otherwise known as the "Overpaid Executive Tax" -- San Francisco companies will be forced to pay an extra 0.1% surcharge on their annual business tax payments if their top executive earns 100 times more than their average worker.
‘OVERPAID EXECUTIVE TAX’ GOING TO VOTE IN SAN FRANCISCO IN NOVEMBER
The wider the gap between the top executive and workers, the higher the surcharge will be. For example, if a CEO makes 200 times more than the average employee, the surcharge increases to 0.2%, and 300 times gets a 0.3% surcharge.
Critics called the surcharge a blatant attempt at redistribution of wealth and said it was poorly timed.
“The middle of a pandemic-fueled shutdown is the wrong time to raise taxes,” said Jim Wunderman, president and CEO of the business advocacy group Bay Area Council.
However, the author of the measure, city supervisor Matt Haney, had argued that it's a necessary step as cities around the country prepare for another spike in coronavirus cases. He noted that the measure would raise over $140 million every year, allowing the city to hire hundreds of nurses, doctors and first responders.