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.