Here you go....just under 300 words.
Mike
Ordinance E, the Gross Receipts Tax Ordinance suggests it will create a "fairer" taxing structure if there
is such a thing. But when an admitted $28.5M tax increase, taking over 60 pages to explain, is submitted
by the mayor just before deadlines, you know it's time to hang onto your wallet and run for cover.
Ordinance E correctly states the payroll tax discourages job creation, economic growth and lowers
wages. It makes sense. Tax something and you will get less of it. Measure E acknowledges this by
exempting small businesses with receipts less than $1M, presumably because San Francisco wants to
encourage small business. There are many so this also pandering for their votes and those of the
envious suggesting E will only go after the rich.
But medium and large companies represent huge economic activity and employment. Yet E
wants to progressively tax receipts so larger companies pay an ever higher percentage. By this move City
Hall effectively says it doesn't want successful companies to grow and stay here.
Of course this will eventually lead to threats of and actual defection to more tax-friendly jurisdictions.
Then there will be the usual back room negotiations where exemptions will be created for the large,
politically-connected and powerful. Weaker, smaller companies who can't leave or play the
game will be left to pay the bills. Anyone who thinks E will actually go after "the rich and powerful"
needs to wake up and smell the coffee.
The payroll tax for all its problems and omissions was at least a flat tax. But E says it "provides an
unstable revenue stream." City Hall and its minions, who consistently gorge themselves on citizens'
productivity, might be surprised at just how unstable revenues can be with considerably fewer suckers
sticking around. Vote NO on E.