An influential political advocacy group in San Francisco has announced plans to spend $10 million this year to defeat a proposed "CEO tax," a measure they claim could derail the city's fragile economic recovery.
The organization Neighbors for a Better San Francisco, led by Jay Cheng, stated it will confront left-leaning initiatives and candidates in upcoming elections. A primary focus is the "CEO tax" bill expected to appear on the June ballot.
This proposal does not tax individual executives directly but applies a surcharge to companies with large pay gaps between top leadership income and median employee wages. Businesses with CEOs earning more than 100 times the median salary could face significantly higher surcharges. Supporters say the measure could generate approximately $200 million annually to maintain essential city services.
Jay Cheng warned that the new tax would make it difficult for businesses to predict annual tax liabilities and could force companies to pass costs to consumers or leave the city. He noted that some major retail chains could face sharp tax increases.
San Francisco currently has an "overpaid CEO" surcharge based on the pay ratio between leadership and staff. The new proposal would raise this surcharge even higher.
City supervisors such as Connie Chan and Jackie Fielder support the measure. Ms. Fielder is also pushing a plan to tax financial institutions to fund the city's public bank.
Neighbors for a Better San Francisco also stated it will campaign against a proposed state-level wealth tax on the ultra-wealthy, arguing the measure could trigger a massive capital flight from California.
According to Mr. Cheng, the organization previously played a role in the 2022 recall campaigns against District Attorney Chesa Boudin and three Board of Education members. The group's primary donor is billionaire Bill Oberndorf, along with other smaller contributions.
Supporters of the "CEO tax" argue the measure ensures income fairness and maintains public service budgets, while opponents warn of negative impacts on the business environment.
