The Facts

The Chronicle says voters should reject Prop D. The editorial board says the measure is being sold as a tax on overpaid CEOs with revenues that would fund healthcare, but in reality the tax is paid by businesses, not executives, which would pass those costs on to consumers, and the funds it raises will be put in the general fund, not dedicated to healthcare.

Prop D supporters say it would protect hospitals and essential services without raising taxes on working families. The Chronicle argues that is misleading because the money is not dedicated to health care, and because the measure would likely hit low-income consumers and retailers, grocery stores, and pharmacies harder than the tech giants and wealthy CEOs voters may picture from the campaign’s rhetoric.

The Context

Prop D is the big fight on this June's ballot. It is being run by a large City Hall labor union who wants the money available for potential raises in upcoming contract negotiations, though they are telling voters that the money will be used for healthcare. It will significantly impact low-margin businesses like grocery stores and wealthy CEOs will be completely insulated from its impacts.

The GrowSF Take

We fully agree with the SF Chronicle: Prop D is not a CEO tax. It is a big increase to San Francisco’s existing gross-receipts tax, and the costs will land on employers, workers, shoppers, or all three. If proponents want to argue for a general tax increase, they should do that honestly. Dressing it up as a strike against billionaire CEOs is not honest, and it is not good policy.