A new proposal to make the flat payroll tax more progressive and exempt more small businesses

EDITORIAL It's rare to see a fairly conservative city agency, created in part to make it harder for progressives to push measures that might affect business, come down in favor of a new business tax. But the San Francisco Office of Economic Analysis has concluded that the proposal by Board of Supervisors President David Chiu to change the local payroll tax and impose a new tax on commercial rents would actually help local businesses, particularly small businesses. The proposal presents a crucial opportunity for progressives to make the case that the Chamber of Commerce and big downtown corporations are not advancing the interests of small businesses — and local merchant groups need to pay attention.

Chiu has taken on a problem that has lingered in San Francisco for decades. The city's business tax is terribly regressive: Only 10 percent of the companies in town even pay the payroll tax, in part because banks, insurance companies, and financial services firms are exempt under state law. That means the burden falls the heaviest on small and medium-sized companies — the ones that provide most of the net job growth in the city.

The new proposal would make the flat payroll tax more progressive and would exempt more small businesses. It would also raise $28 million more a year for the cash-strapped municipal coffers by taxing commercial rents of more than $60,000 a year. Read more »

18 months after a BART cop shot Oscar Grant, the transit agency still doesn't have effective police oversight

EDITORIAL Who murdered Oscar Grant? Part of the equation is the years of neglect of the BART Police. — Assembly Member Tom Ammiano

We're angry, too.

Angry that a police officer who shot and killed an unarmed man could wind up with little or no prison time. Angry that the news media whipped up such a fervor over the potential for a riot in Oakland that it almost guaranteed someone would show up and break a few windows. Angry that the jury who decided this case was 400 miles away and included no African Americans.

But mostly we're angry that 18 months after a BART cop shot Oscar Grant, the transit agency still doesn't have effective police oversight. And until the BART board recognizes that it still has 200 poorly trained, poorly supervised,* armed officers on the streets — and that this shooting wasn't an anomaly, it was simply the latest in a series of criminal acts by BART police officers that led to the deaths of innocent people — and until the BART Board starts treating this like the emergency that it is, the problems are going to continue.

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Newsom needs to decide whether he's serious when he says he wants to work with the supervisors on a budget

EDITORIAL The San Francisco supervisors took a huge step with the city budget this year: they essentially told the mayor that his approach was unacceptable, and that they were going to do it themselves.

The result — the document that the board's Budget Committee approved and sent back to Mayor Gavin Newsom — isn't perfect. But the members of that panel saved $40 million worth of programs from the mayor's budget ax and got rid of two particularly bad plans: privatizing health care at the county jails and allowing more condominium conversions.

The board members are also looking seriously at putting as much as $100 million in new taxes — progressive taxes — on the November ballot. Current plans include a modest increase in the hotel tax, an increase in the real-estate transfer tax on high-end properties, and a tax on commercial rents of more than $200,000 a year, which would be paired with a reduction in the payroll tax for small businesses.

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Mayor Gavin Newsom still wants to balance this year's municipal budget with no new taxes (although he's happy to raise the fees to use city facilities). The supervisors are looking at a different approach: John Avalos, chair of the budget committee, told us he'd like to see $100 million in new revenue on the table.Read more »