San Francisco is once again heading into a contentious ballot fight over taxes and economic policy as supporters of the Overpaid CEO Act on the ballot March 14, 2026, launch a major voter outreach campaign for Proposition D in the June 2 election. The measure, dubbed the “Overpaid CEO Act,” is designed to significantly increase a tax on corporations with vast pay disparities between top executives and typical workers, a proposal its backers say is essential to preserving city services amid deep budget cuts.
What Prop D Would Do
Proposition D seeks to expand a tax originally approved by voters in 2020 and scaled back in 2024. Under current San Francisco law, businesses whose highest‑paid executive earns at least 100 times more than the median salary of their San Francisco employees already incur a surcharge, in some cases roughly 0.129% on gross receipts. Prop D would increase that rate to as much as 1.121% for the most egregious pay gaps, applying to large companies with more than 1,000 employees and annual revenues above $1 billion.
Supporters estimate the stronger tax could generate more than $200 million annually for the city’s general fund. They argue that revenue would help maintain critical public services in a time when federal support, particularly Medicaid funding, is expected to shrink following cuts tied to federal legislation.
Voices for “Care, Not Greed”
Organizers backing the measure have emphasized the human impact of revenue shortfalls. At a kickoff rally, union leaders, health care workers, and small‑business advocates stressed that cuts to city services could worsen conditions in public hospitals, mental health programs, and emergency response systems, areas that rely heavily on both federal dollars and local funding.
At the heart of the campaign’s messaging is a simple slogan: “Care, not greed.” Supporters argue that corporations with extraordinary executive compensation can and should contribute more to the communities in which they operate, especially when employees, residents, and service systems are under strain.
Opposition and Economic Concerns
But Prop D has not been without controversy. Opponents, including Mayor Daniel Lurie, business associations, and some merchant groups, have warned that the measure could inadvertently harm San Francisco’s economic recovery. They argue that higher taxes on corporations might drive investment or even large employers out of the city, ultimately weakening the broader tax base and reducing job opportunities.
Instead of the steep surcharge proposed under Prop D, business advocates have thrown their support behind a competing initiative called Prop C (the Small Business and Economic Recovery Act), which would make more modest adjustments to the same CEO tax. If both measures pass on June 2, only the one receiving the most votes will take effect.
A Symbolic Fight in a Divided City
San Francisco’s debate over the Overpaid CEO Act reflects a larger national conversation about inequality, corporate responsibility, and economic sustainability. As voters prepare to weigh in this spring, the city finds itself balancing the urgency of funding essential services against concerns about economic competitiveness and recovery. With millions potentially at stake and strong opinions on both sides, the election could offer a snapshot of how voters in a major American city view taxation, executive pay, and the role of government in addressing fiscal challenges.
