And to be clear, it's only on business that is done in San Francisco. Essentially, it's going to turn into a sales tax for SF.
> The tax will levy an extra 0.1% to 0.6% on gross receipts made in San Francisco for companies whose highest paid executive makes 100 times or more its median worker’s salary. The amount levied will increase in 0.1% brackets proportionally to the pay ratio. A company whose highest paid employee earns 200 times more than its median San Francisco worker will get a extra 0.2% charge on its gross receipts. For companies whose CEO makes 300 more, the charge jumps to 0.3% and son on. The tax caps at 0.6%, and only companies with gross receipts over $1.17 million will be targeted.
The interesting question, in my opinion, is whether Stripe's revenue from other San Francisco companies is considered gross receipts within the city or someplace in Delaware or Ireland.
I'm sure they could figure out a way to get that revenue to be transferred elsewhere. That said, Stripe doesn't likely pay its CEO 100x the average employee wage since it's a pre-IPO company. The CEO likely earns a few million in raw $$$ and the average salary at Stripe is likely past $100k. So, I doubt it's a real issue.
So, for now, it's probably a non-issue... and they have time to adjust.
That makes it even more unlikely that there will be much revenue at all generated by this tax. Seems like the beneficiaries of this new plan will be tax accountants and lawyers creating new complicated business structures to bypass the tax...
> The tax will levy an extra 0.1% to 0.6% on gross receipts made in San Francisco for companies whose highest paid executive makes 100 times or more its median worker’s salary. The amount levied will increase in 0.1% brackets proportionally to the pay ratio. A company whose highest paid employee earns 200 times more than its median San Francisco worker will get a extra 0.2% charge on its gross receipts. For companies whose CEO makes 300 more, the charge jumps to 0.3% and son on. The tax caps at 0.6%, and only companies with gross receipts over $1.17 million will be targeted.