San Francisco’s narrowing middle class, already squeezed by the high cost of living could take another hit if a new business tax is approved in the November election, according to the city’s Office of Economic and Workforce Development.
The measure, approved for November’s ballot last month, would levy an average of about 0.5 percent gross receipts tax on companies that make $50 million or more in revenue. In return, it would roughly double the city’s funding for housing and homeless services, such as 1,000 extra shelter beds and services for the mentally ill.
Homelessness activists, nonprofits and community groups strongly support the measure, saying it’s time for the city’s businesses to do more to alleviate San Francisco’s homeless population.
But, according to a memo sent to the mayor’s office by the Office of Economic and Workforce Development last week and obtained by The Chronicle, the extra tax would disproportionately impact employees in mid-level jobs, such as administrative staff in retail companies and grocery store workers.
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