San Francisco voters passed Prop C by a wide margin on Tues. The program would tax the city’s largest businesses to raise funds for homelessness. San Francisco-based Salesforce’s CEO Marc Benioff was its most vocal proponent while Twitter CEO Dorsey and others said it lacked proper oversight and would disproportionately affect financial services. Companies that make over $50 million in revenue would see an extra .5% in taxes generating around $300 million for the city’s homeless.
- Did the rise of tech in San Francisco contribute to homelessness?
- Do you agree with taxing large companies to pay for homeless programs?
- Will this tax cause companies to leave San Francisco?
The controversial San Francisco “homelessness tax” that divided the tech industry passed with nearly 60 percent affirmative votes, according to poll tallies Tuesday night.
Proposition C will increase gross receipts taxes for companies with more than $50 million in annual revenue by an average of 0.5 percent, generating up to $300 million a year to combat the city’s homelessness crisis through initiatives like new beds in shelters and increased mental health services.
Prop C had both vocal proponents and vehement detractors in the tech industry.
Salesforce CEO Marc Benioff strongly endorsedthe measure as a moral responsibility of tech companies, many of which have received tax breaks to maintain offices downtown. Together, Benioff and Salesforce contributed more than $7 million to support the proposal, which could cost Salesforce up to $10 million in additional taxes a year.
On the other side, Twitter and Square CEO Jack Dorsey spoke out against Prop C, as did the CEO of payments company Stripe and the founder of Zynga, Mark Pincus. Lyft, venture capitalist Michael Moritz and Y Combinator’s Paul Graham all donated at least $100,000 to the “No on Prop C” campaign, too.