Other businesses that pay taxes on gross receipts instead of payroll expenses "would pay an additional tax from 0.1 percent to 0.6 percent of [their] San Francisco gross receipts.".
"This tax not only affects large, local firms like Salesforce, but also large corporations that do business in the city, like Visa and J.P. Morgan," NBCNews wrote.
A similar tax in Portland, Oregon, affects only publicly held companies, but the San Francisco tax affects both private and public firms, the NBCNews article said.
The percentages charged will vary depending on the size of the "executive pay ratio" between the top and median salaries.
Small businesses that already have exemptions from the gross receipts tax are also exempt from the Overpaid Executive Tax.
The tax was also opposed by the San Francisco Taxpayers Association and Libertarian Party of San Francisco.
The new revenue will "support our health and public health systems, which are deeply strained from the consequences of inequality. »