Voters in San Fran recently passed a wealth tax reaching levels beyond efforts at the state or federal level. The new tax, described as an “overpaid executive tax,” is aimed at San Fran companies that “pay their officers more than 100 times the median worker salary,” reports BRIGHT editors.
A Corporate Exodus
The ripple effects of San Francisco’s corporate exodus will inevitably hurt blue-collar workers and service industry workers in the future. Local revenues for basic services, social programs, and infrastructure will be hollowed out as rich earners continue to leave and take their capital elsewhere.
For example, voters will move to places with more jobs or to where they can create them. This will simply create advantages for workers in Austin or Denver to the detriment of low income and middle-income workers in San Francisco
Other tech executives, including Tesla CEO Elon Musk, say they are ditching California due to the state’s personal income tax rate – it has the highest in the nation. Musk is also moving his company to Texas, which has a zero percent income tax rate.