WHAT DO YOU THINK?
First I thought it was a joke, but it’s not funny, it’s downright scary and dangerous.
Targeting inequality; balderdash! What has the income of any CEO to do with harming lower income Americans? Not one thing.
Measures such as this only serve to foster class envy while doing nothing to help lower income Americans. It’s nothing but a political gotcha.
What is most disturbing is that people vote for such taxes. The fact it was put out for a vote tells you it’s real purpose. Does anyone think that companies will increase worker pay to avoid the tax?
What business it is of government what a company pays its top executive? The federal government already limits taxpayer subsidized compensation under the IRC by limiting the deductibility of executive compensation to $1,000,000, thereby shifting the cost to shareholders and owners. Other tax-advantaged programs such as the 401(k) also limit compensation related benefits.
The result of its quest for social equality is that San Francisco is unlivable for average people and its policies simply drive up income needs and lower income citizens get nowhere. SF is the second most expensive city in the US and sixth most expensive in the world.
Except for Emeryville, the San Francisco suburb, SF has the highest minimum wage in the US. It’s high minimum wage does little good if the cost of living voids the advantage.
The tax will levy an extra 0.1% to 0.6% on gross receipts made in San Francisco for companies whose highest paid executive makes 100 times or more its median worker’s salary. The amount levied will increase in 0.1% brackets proportionally to the pay ratio.
A company whose highest paid employee earns 200 times more than its median San Francisco worker will get a extra 0.2% charge on its gross receipts. For companies whose CEO makes 300 more, the charge jumps to 0.3% and son on. The tax caps at 0.6%, and only companies with gross receipts over $1.17 million will be targeted.
Under the measure, gross receipts and CEO compensation will include money made from stock options, bonuses, tax refunds, and property, a caveat seen by many as a way to target the tech sector where CEOs are often compensated in non-salaried bonuses. Tech is expected to account for 17% of the tax revenues, according to an estimate by the city’s chief economist, while retail and financial firms are expected to account for 23% of the revenues each.
Source: SF voters approve first-in-the-nation CEO tax that targets inequality | CalMatters
What do I think? It will make little difference in the behavior of CEOs, because they don’t work just for the money. The multi-million dollar salaries pay them in prestige, not so much for what they can spend it on. What will be reported are their pre-tax salaries and bonuses, which is what matters.
Just need to terminate all employees in San Francisco City/County or relocate all jobs out of the City/County prior to January 1, 2022.
Works for me. Many were already leaving anyway once more positions were capable of remote employment.
Wealth and income are not zero sum games. Both can go up, for CEO’s and workers. I just hope this drives businesses out of S.F. So they can learn from this.
What a stupid move by San Fran voters, don’t they know that it will have no effect on their standard of living and the price of products and services of the affected companies will just be passed on to the customers. But, then again they continue to elect Nancy Pelosi to Congress. Her and her families standard of living continue to rise, while their standard of living continues to go down. I grew up in Southern CA 1961 to 1976, spent 5 days there in Sept, 2020 and could not wait to leave that high priced state of confusion. CA is not even a nice place to visit anymore.
After this election cycle, I predicted that we will be a full blown socialist nation in 4 presidential election cycles. This is just more proof. After decades of giving out participation trophies, we have converted the founding principles of Life, Liberty, and the Pursuit of Happiness and a land of equal opportunity into equal ownership of wealth. This new tax will do more to push innovation offshore and reduce incentives to do hard work in America if other cities and states adopt this thinking.
New Jersey is trying something just as harmful on electronic trade data transactions to the stock market, but that is a whole other post.
Are they going to start taxing the professional athletes that play in San Francisco because they make over 100 times the hot vendor in the stands? Or are they going to require the hot dog vendor to be allowed to play 5 minutes in the game for “equality”? Of course not. When you have talent and skills, your are rewarded, just like CEOs but CEOs that provide the jobs are the enemy. This feel good legislation will probably chase away companies instead of raising revenue.
Question…why are record numbers of people leaving states like California, Illinois and New York…maybe socialism is a failed ideology that only works on college campuses ?
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Agree 100% our youth is being brainwashed by their socialist professors.