This June, San Francisco voters will have an opportunity to, rather literally, tax the rich.
Here’s how that works: In 2024, every last vestige of San Francisco political power united behind Prop. M, a sweeping rewrite of the city’s business tax formula. The issue was that San Francisco’s business tax revenue had grown top heavy: Just seven of the biggest companies accounted for 24 percent of the revenue and the 100 biggest companies paid 58 percent of it.
This left San Francisco extraordinarily susceptible to a massive financial hit if even a handful of companies relocated. In November 2024, 69.5 percent of voters approved Prop. M, and eased the burden on the city’s biggest companies (while the city did not disclose its largest companies, one needn’t be Hercule Poirot to deduce many or all of them. Just scan the city skyline, for starters.).
Here’s the thing, though: By doing so, the city raised the burden on many, many smaller companies. This, again, was by design.
Easing taxes on the rich to raise taxes on the not-as-rich, regardless of the rationality of spreading out a tax base, was never a natural fit for San Francisco’s electorate. And, not even two years later, the city’s service employee unions have signature-gathered a tax on wealthy corporations onto this June’s ballot.
Proposition D, the so-called overpaid CEO measure, would levy taxes on companies in which the CEO earns 100 times or more his or her median income employee. At issue here is that this would undo portions of Prop. M.
If voters approve, a measure meant to instill stability and predictability for businesses with offices in San Francisco would be replaced, not so long after the ink has dried. This is the opposite of predictability for city businesses — but, as a political measure, it was very predictable.
Also predictable: the news that the Chamber of Commerce signature-gathered its own dueling June 2026 measure intended to sink Prop. D (it’ll be called Prop. C).
When questioned regarding their stance on Props C and D, some city leaders and aspiring elected officials have been straightforward. Others have been tap dancing to rival the Nicholas Brothers. The county Democratic Party will vote on whether to endorse or spurn Props. C and D on Wednesday night.
Prior to that, Mission Local asked San Francisco’s present and aspirational leaders the following:
Are you publicly supporting or opposing the CEO tax? Please state why or why not and please state how you’ll be voting on your own ballot.
And here are their responses: