This is an archive of a past election.|
See http://www.smartvoter.org/ca/sf/ for current information.
Gross Receipts Tax
San Francisco County
Ordinance - Majority Approval Required
Pass: 223887 / 70.75% Yes votes ...... 92577 / 29.25% No votes
Index of all Propositions
|Information shown below: Summary | Fiscal Impact | Arguments ||
Shall the City: create a gross receipts tax designed to eliminate or reduce the tax on payroll costs; and increase business registration fees?
League of Women Voters
|Arguments For Proposition E||Arguments Against Proposition E|
|Prop E Means Fair Business Taxes, More Good Jobs
and Better City Services
San Francisco's current business payroll tax is fundamentally
unfair because it is a tax on jobs instead of a
tax on sales or profits.
That means now, every time a local business hires a
new employee, its taxes increase ++ a huge disincentive
to creating new jobs in San Francisco. The current
payroll tax is a flat tax, so the biggest corporations
and most profitable industries now pay the same rate
as small neighborhood businesses and struggling
Proposition E fixes our unfair tax system and replaces
it with one that will help small businesses and startups
create more jobs. Prop E also will provide a more
predictable and steady source of revenue to fund key
public safety, affordable housing and public health
programs and may even allow us to restore recent
cuts to MUNI service.
Prop E is fair because it only applies the gross receipts
tax to businesses with more than $1 million in annual
sales, exempting most small businesses, sole proprietors
and small residential property owners.
An extraordinarily broad coalition, led by Mayor Ed
Lee, Board President David Chiu and Supervisor John
Avalos, crafted the Prop E reform. Prop E is endorsed
by: every member of the Board of Supervisors; the
San Francisco Labor Council; the San Francisco
Chamber of Commerce; San Francisco Firefighters; sf.
citi, the organization of local tech employers; SFMade,
the coalition of San Francisco-based small manufacturers,
and the Chinese Chamber of Commerce.
Vote YES on Prop E.
Mayor Edwin M. Lee
David Chiu, President;
Board of Supervisors
Scott Wiener Board of Supervisors|
|Libertarians oppose Proposition E, which replaces the
gross payroll tax with a gross receipts tax.
One of the arguments for this change is that the gross
payroll tax is a tax on hiring employees which reduces
employment. The proponents of Proposition E are
explicitly recognizing that taxing an economic activity
will reduce it. Therefore, a tax on gross receipts will
reduce gross receipts in SF. Businesses will waste
valuable resources trying to move activity out of The
City, instead of producing goods and services customers
want to buy. Reducing gross receipts will indirectly
reduce employment just as sure as gross payroll tax
since money paid in taxes is not available to be used
to hire employees.
The gross receipts tax is estimated to raise more revenue
for the government than the gross payroll tax.
This is an economic drain on the private sector that
we cannot afford in hard times. In the private sector
business and households earn revenue by providing
goods and services that other people want to pay for.
Governments raise revenue by confiscation and
threats of violence. In the private sector there is a real
relationship between revenue earned and wealth created,
but in the public sector there is no such relationship.
Compensation in the public sector soars out of
control because the payers cannot easily cut off the
flow of money. Vote NO on Proposition E.
Libertarian Party of San Francisco|