Overview
- Backed by Unite Here Local 11 and allied groups, the campaign unveiled the Overpaid CEO Tax and began collecting signatures outside the Tesla Diner.
- The measure targets companies with at least 1,000 employees whose top executive earns more than 50 times the median Los Angeles worker’s pay.
- The additional levy scales with the pay ratio, from an extra charge equal to a firm’s regular city business tax at 50–100 times to 10 times the tax above 500 times, with current rates at roughly 0.1%–0.425% of gross receipts.
- Proponents say revenues would be earmarked for specific uses, with 70% for the Working Families Housing Fund, 20% for street and sidewalk repairs, and 5% each for after-school programs and fresh food access.
- Business groups, including the Valley Industry & Commerce Association, argue the policy would drive companies and development away, while supporters contend Los Angeles’ market strength will keep firms in the city.