Revenues raised by the CEO tax would be earmarked for specific purposes and not go directly to the city’s general fund. According to the coalition, the current city business tax is between 0.1% and 0.425% of gross receipts. If a top manager at a company makes between 50 and 100 times the median employee, the company will pay an “Overpaid CEO Tax” equal to the business tax otherwise paid by the company. If the top manager makes greater than 500 times the median employee, the business would be required to pay an additional tax of 10 times the business tax otherwise owed. “The bigger the gap, the higher the tax,” Petersen said.

Source: Los Angeles Times January 15, 2026 22:18 UTC