No. The evidence doesn’t support this false claim.

San Francisco’s “Overpaid CEO Tax” is not new. It’s an existing tax that was previously at higher rates from 2022 to 2024. During that period, there was no spike in the prices of groceries or medicine beyond inflation and no clear evidence that businesses left the city because of this tax.

When the reduced Overpaid CEO went into effect in 2025, we did not see prices go down or a decrease in businesses leaving. In fact, in 2024, when the higher rates were in effect, only one Walgreens pharmacy in San Francisco closed. After the tax was reduced, 12 Walgreen pharmacies closed. 

Large chains like Walgreens are clearly not closing because of lower or higher taxes. They are closing due to real estate costs, consumer demand, and other economic factors, not a narrowly targeted tax. 

The highest tax rate in Prop D is roughly 1%, a relatively small amount. No corporation has left San Francisco as a result of the previously passed overpaid executive executive tax, which has consistently performed higher than expected until rates were reduced by Prop M. Furthermore, this tax applies to corporations that do business in San Francisco, regardless of whether they are headquartered here or not, meaning there is no incentive for companies based here to leave.

The Trump Administration’s “One Big Beautiful Bill” made major cuts to Medicaid and SNAP benefits, paid for through massive corporate tax breaks. It’s one of the largest transfers of wealth from the poor to the rich in American history. As a result, over 21,000 San Franciscans are at risk of losing access to CalFresh benefits and between 25,000 to 50,000 residents are at risk of losing Medi-Cal coverage. These cuts are projected to worsen San Francisco’s deficit by as much as $481 million over the coming years.

If Prop D fails, San Francisco faces real and immediate consequences:

• • Cuts to SF General Hospital, Laguna Honda Hospital, clinics, and more

• • Reduced mental health, homelessness prevention, and senior services

• • Increased pressure on working families and small businesses as inequality skyrockets

The tax rates for Prop D are small, with the highest rate being about 1%. They get progressively larger depending on how extreme the pay ratio is for the top paid executive compared to the median worker, with the top rates only applying to companies with ratio of 600 to 1 or more: 

• • 0.183% for an Executive Pay Ratio greater than 100:1, but less than or equal to 200:1;

• • 0.374% for an Executive Pay Ratio greater than 200:1, but less than or equal to 300:1;

• • 0.556% for an Executive Pay Ratio greater than 300:1, but less than or equal to 400:1;

• • 0.748% for an Executive Pay Ratio greater than 400:1, but less than or equal to 500:1;

• • 0.930% for an Executive Pay Ratio greater than 500:1, but less than or equal to 600:1; or

• • 1.121% for an Executive Pay Ratio greater than 600:1.

Among the large corporations that would qualify, the average CEO pay in 2024 was $34 million, significantly larger than what they would pay in taxes to San Francisco:

• • GAP CEO $19 million

• • Williams Sonoma $27 million

• • Wells Fargo $30 million

• • Visa $26 million

• • Salesforce $55 million

• • Instacart $48 million

• • Uber $39 million

If corporations don’t want to pay this tax, they can reduce their CEO pay or increase the pay of their median worker.

The average large corporation received over $200 million in tax cuts annually under the first four years of the Trump tax cuts (Tax Cuts and Jobs Act or TCJA). Prop D restores just a small fraction of that lost tax revenue to protect services in San Francisco.

For example, companies like Visa received over $5 billion in tax cuts during the first four years of the TCJA. On average they're receiving $1.3 billion in tax cuts each year at the federal level.  Salesforce famously paid no federal income tax over the first three years of the TCJA on over $4 billion in revenues. So, while companies would pay in the tens of millions under Prop D, they are receiving billions in the federal tax cuts. 

A corporation with over $1 billion in gross receipts in San Francisco would likely pay between $1.8 million to $11 million. These companies will only pay the top rate if their CEO ratio exceeds 600:1.

Revenues from Prop D will help preserve critical city services: healthcare workers, first responders, public hospitals, housing, in-home support services (IHSS), long-term care (LTC) programs, and other essential services that keep our neighborhoods safe and healthy.

The general fund is in trouble and a wide range of social services are threatened because of it. The projected $900 million deficit is entirely in the general fund. Since the general fund also supports the public hospitals, Medicaid cuts will worsen this deficit. Any service in the general fund could be at risk for cuts and we need revenue to protect them.