Proposal 'Robin Hood' Tax Backed by Voters In San Fransisco

San Francisco voters passed Proposition C yesterday with a 60% majority, Recode reports.

The proposal establishes a tax between 0.175% and 0.69% on the gross income of businesses reporting over $ 50 million in annual turnover, along with a 1.5% payroll tax for certain companies with $ 1 trillion in turnover to fund housing and homeless services. The city predicts $ 250 million and $ 300 million to help needy causes.

It already has a multi-million dollar funding battle among tech titans: Salesforce CEO Mark Benioff and Twitter CEO Jack Dorsey exchanged barbed tweets and campaign contributions in the lead-up. Executives at Lyft, Stripe, Sequoia Capital, and others

San Francisco 's own mayor, London Breed, opposite the measure, which puts a charge of a fund, alongside a board of supervisors. Fortune's own Adam Lashinsky wrung his hands San Francisco's homeless.

Since the tax hits turnover, not profits, companies with tighter margins will suffer more. Perhaps 400 businesses will be affected by the new tax, Bloomberg carryforwards. Many of these companies, including Twitter, had negotiated tax breaks when they set up shop in San Francisco. Twitter's is worth $ 22 million, according to CNET.

San Francisco's homeless population was last counted around 7,500 people and perhaps 20,000 people used the city's services over the course of the year, at a cost of around $ 380 million. The controller's office estimated that it could add $ 60-75 million San Francisco Public Press carryforwards.