San Francisco voters pass ‘Overpaid Executive Tax’

San Francisco voters pass ‘Overpaid Executive Tax’
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[Ed. – Great plan. It’s worked so well in other major metropolises like New York.]

Trying to address the growing wage gap between chief executives and workers, San Francisco voters overwhelmingly approved what is believed to be the nation’s first tax aimed at combatting pay inequity.

The “Overpaid Executive Tax,” formally known as Proposition L, will charge any company that does business in San Francisco and has a top executive earning over 100 times more than their “typical local worker,” according to the tax’s author, Matt Haney, a member of the city’s Board of Supervisors.

Companies with top executives who fall into this category must pay a 0.1 percent surcharge on their annual business taxes. The surcharge increases by 0.1 percent per factor of 100, topping out at 0.6 percent. So top earners making 200 times more than the average worker pay a 0.2 percent tax and so on.

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San Francisco voters embraced this tax at a time when CEO compensation is surging.

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