Billionaires Win as Voters Halt San Francisco ‘Overpaid CEO’ Tax

San Francisco voters rejected a union-backed ballot measure to raise taxes on large corporations doing business in the city, a win for billionaires who argued that the levy would harm the city’s economic recovery.

The Overpaid CEO Act, known as Proposition D, would have generated over $250 million a year, according to a city estimate, by increasing taxes on any large business where the highest-paid executive earns 100 times or more than the median employee. Public-sector unions backing the measure said the money was needed to offset President Donald Trump’s spending cuts on healthcare.

Volunteers hold signs during a canvassing event in support of the Overpaid CEO Act in San Francisco on April 11.

Photographer: Bryan Banducci/Bloomberg

The measure became ...