Final week, voters in San Francisco passed a bevy of glossy taxes aimed in the direction of the live of America’s earnings brackets. The most putting is Proposition L, informally dubbed the “CEO tax.” By focused on companies with extremely paid executives and low-paid workers, it won approval with a resounding 65% of votes. That makes San Francisco the supreme metropolis to end a theory prolonged championed nonetheless seldom enacted in left-leaning circles: a company inequality tax.
“We were searching for revenue measures that clearly purpose the live of the economic ladder,” says Dean Preston, a member of the San Francisco Board of Supervisors, who supported the proposition. “There would possibly be an economic theory that has frankly driven this country for a basically very prolonged time: Whenever you tax the smartly off folks, this hurts others. I don’t deem that’s beautiful.”
The tax applies to firms sooner or later of which one of the best-paid managerial employee earns 100 times larger than the median worker in San Francisco. Businesses above this 100 to 1 threshold pay an further surcharge on their scandalous receipts. The elevated the inequality, the larger the tax. Corporations with an executive earning 200 times the median worker in the metropolis incur a 0.2% tax, the whole procedure up to 0.6%. 1 The invoice is anticipated to herald between $60 million and $140 million per year, about 0.4% to 1% of the metropolis’s annual price range.
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