Prop D, called the “Overpaid CEO tax” would have increased business taxes on companies whose highest paid executive makes at least 100 times more than their median employee. It was supported by many labor unions and eight members of San Francisco’s board of supervisors.
Its rival measure, Prop C, would have lowered taxes on mid-size businesses with cash flow between $5 million and 7.5 million. This would have impacted about 800 businesses city-wide.
Prop C was created with the goal of defeating Prop D. It raised $6.6 million — twice as much money as the Prop D campaign.
David Harrison, Director of Public Policy at the San Francisco Chamber of Commerce, helped put Prop C on the ballot.
"Our top priority was to ensure that Proposition D didn't move forward," Harrison said.
Despite Prop C’s failure, he was in good spirits on Wednesday. He was cautiously optimistic that Prop D would also fail to pass. It is currently trailing with 45 percent of the vote.
Harrison said he would take the failure as a sign that San Franciscans agree that, "we need predictability and compromise and not populist measures that are rushed to the ballot."
Supporters of the Overpaid CEO Tax — like the group Small Business Forward — were proud of their work and said the race will be close.
The organization told KALW in a statement, “This was a low turnout election dominated by two more conservative-leaning districts.”
They noted that progressives tend to vote late, so they’re keeping an eye on the race as votes continue to be counted.
The group said, “The revenue raised from Prop D is essential in the face of the federal administration's tax cuts which hurt us here locally as well,” and that “Proposition D was up against some of the most powerful and wealthy people in history.”
The next update on the vote is expected to come this afternoon.
