More than two-thirds of San Francisco voters approved Proposition L — the first measure in the nation to tax a corporation that pays their top executive over 100 times their typical worker — the latest election results showed Thursday.
Under the measure, also known as the CEO tax, corporations that pay CEOs 100 times more than their average worker will pay an additional 0.1% tax on their annual business tax payment.
Corporations that pay their CEOs more than 100 times their average worker will face an even higher additional tax.
“Voters are demanding we take action on inequality,” San Francisco Supervisor Matt Haney said on Twitter on Wednesday. “The measure will bring in up to $140 million, which we will use to support our health and public health systems, which are deeply strained from the consequences of inequality. We will hire nurses, social workers and emergency responders, and expand access and treatment.”
The tax was modeled after a similar measure in Portland, Oregon.