Hell Yes

San Francisco is looking at instituting a payroll tax on stock awards.

They are calling it an "IPO Tax", and I wholeheartedly approve.

………

San Francisco Supervisor Gordon Mar is circulating a motion that, if approved by a majority of the county board, would place a payroll tax covering stock-based compensation on the November ballot. The proposal, a draft of which was obtained by Bloomberg, would impose a new cost, “for the privilege of engaging in business in the city,” on companies that dole out equity to employees.

Mar told local labor and community activists at a meeting Monday night that he plans to announce the proposal on Wednesday during a subcommittee hearing and to introduce it in the next couple weeks, said Kung Feng, executive director of Jobs With Justice San Francisco, a coalition of labor and community groups that’s among the organizations advocating for the tax. Uber declined to comment because it hasn’t seen the legislation.

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“We know corporate IPOs alone did not cause income inequality and our social crises,” Mar plans to say at the Wednesday meeting, according to prepared remarks shared by his office. “But they have, and will, exacerbate it. So today I’m announcing a proposal to tax the wealth generated by IPOs to fund programs to address income inequality.”

The potential law, which some are calling an “IPO tax,” reflects uneasiness in a city with constant reminders of the income gap, from Google buses to Uber drivers sleeping in their cars. A new analysis from San Francisco’s budget office indicates that IPO riches under the current tax system will provide little benefit to the city while driving up housing prices. But there’s a long road to making a new law. For it to take effect, the motion would need to secure majority support from the board of supervisors, win approval from voters in November and survive any potential legal challenges from affected companies.

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The money from the tax would support affordable housing, lower-income workers, education and other benefits, according to Feng, one of several people briefed on the plans who spoke to Bloomberg. This year’s IPOs are “going to create vast inequality and displacement, and we as a city need corporations to pay their fair share and be good neighbors,” said Feng. “The IPO tax is one step toward that.”

I don't expect it to pass, and if it does, I expect it to be tied up in court for years, but I can dream.