The #CEOTax on overpaid executives is going to do a lot of good for the San Francisco economy. The inequality between the pay of an average worker and a top executive is mind-boggling, as it was reported that some executives earn as much as 300 times more than their average workers per  year. The Overpaid Executive tax went into effect in January of 2022, and it should raise over $140 million every year that can be used by the city to hire hundreds of doctors, nurses, and other health workers.

With the exception of Administrative Office Tax filers, nonprofits as well as small business enterprises (those making no more than $1,000,000 in annual San Francisco gross receipts) that are exempt from the Gross Receipts tax are also generally exempt to the OE tax. So it will not penalize everyone across the board; and it will not affect smaller companies and nonprofit organizations.

The OE tax will reduce the unfair income inequality between top executives and average workers in large corporations. It is very simple for companies to avoid paying the extra tax. The rate of the tax surcharge is dependent on the difference between what a company pays their top executives and their average employees. Therefore, the easiest way for larger corporations to keep from paying the OE tax is either to reduce the pay of their executives, or raise the pay of their employees. 

If their executives take a pay-cut to reduce their earnings, the money companies will save should be used to fund an increase in the earnings of their other employees. This will go a long way toward improving the standard of living for average workers in San Francisco.

Similar tax models have been implemented before in other cities across the nation, such as Portland, Oregon. Revenue generated by the tax is helping Portland deal with income inequality, and providing additional funding for social services.

Despite what opponents have said, this tax will not make companies leave San Francisco. It is a small surcharge companies can avoid if they pay their workers a fair wage and do the same for their CEOs. This tax adjustment will not hurt the economy of the city as a whole. If corporations decide not to restructure their wage systems, the money they have to pay for this tax will be used to fund the city's plans for the future, including improving the public health system.

This tax will help improve the standard of living for median income workers in San Francisco, reduce the income gap between average workers and executives of large corporations, and raise money to help the city recover the economic losses of recent years.