L.A. unions push new tax on companies with 'overpaid' CEOs

"The so-called "Overpaid CEO Tax" initiative was announced Wednesday at a rally outside Elon Musk's Tesla Diner in Hollywood, and featured union workers holding signs that read "Taxing greed to pay for what we need," and a cartoon cutout of a boss carrying money bags and puffing a fat cigar. "It's high time the rich paid more taxes," said Kurt Peterson, the co-president of UNITE HERE Local 11, which represents airport and hotel employees."

"The proposal is sponsored by the "Fair Games Coalition," a collection of labor groups that includes the Los Angeles teachers union, and comes on the heels of a statewide ballot proposal for a one-time 5% wealth tax on California billionaires that would raise money for healthcare for the most vulnerable. Revenues raised by the CEO tax would be earmarked for specific purposes and not go directly to the city's general fund."

"Critics say say the proposal is misguided and would drive business away from the city. "It would encourage companies that have minimal contact and business in Los Angeles to completely pull out," said Stuart Waldman, head of the Valley Industry & Commerce Association. "You'll never see another hotel built in Los Angeles. It's just one more thing that will drive business away.""

Los Angeles labor unions are proposing a ballot initiative called the 'Overpaid CEO Tax' that would raise taxes on companies whose chief executives make at least 50 times the pay of their median employee. The measure was announced at a rally in Hollywood with union members holding signs and props. The proposal is backed by the Fair Games Coalition, which includes the Los Angeles teachers union, and follows a separate statewide billionaire wealth tax proposal. Revenues would be earmarked: 70% for a housing fund, 20% for street and sidewalk repairs, and 5% each for after-school programs and fresh food access. Supporters must collect 140,000 signatures within 120 days. Critics warn the measure could drive businesses and development away from Los Angeles.

Read at Los Angeles Times