Vote YES on Prop L to add a proportional surcharge to any company whose top executive’s pay is at least 100 times more than the median worker’s pay at that company.
Proposition L asks San Franciscans to issue an ordinance imposing a general, additional gross receipts tax on businesses that pay their top executive over $2.8 million annually at a progressive rate dependent on the ratio of executive/median worker salaries. For example, if the executive pay ratio is over 100:1 but less than 200:1, then the rate will be .1% and so on until the rate is capped at .6 percent. It is estimated by the Controller’s Office that the proposition will provide an annual revenue of $60 million to $140 million, depending on economic conditions. If passed by voters, the ordinance will take effect on January 1, 2022.
Why voting YES on Prop L matters:
- The Overpaid Executive Tax will only apply to companies that contribute to the growing inequality between the average worker and top executives, targeting companies with executives who are paid over $2.8 million each year. Small businesses will not be hurt by this tax.
- Over the next two years, San Francisco’s Department of Public Health budget will be cut by more than $250 million after already being underfunded and understaffed for years. Prop L is the best way to pay for these services by corporations that can afford to pay their fair share.
- “Prop L will make businesses leave San Francisco.” --FALSE. Companies that can afford to pay their top executive at least $2.8 million annually can afford to pay the additional gross receipts tax that contributes to public services in San Francisco. The rate is considerably small when compared to total revenues that companies are making in San Francisco.