Where Will the Money Go? (Overpaid CEO Tax)

If Los Angeles manages to pass the Overpaid CEO Tax, which I explained in my last video, where will the money go? That’s a question that many of you had, so here’s a breakdown.

This tax is estimated to bring in $500 million annually. Those funds will be split between four different buckets.

A hand-drawn sketchnote titled 'Where Will The Money Go?' explaining the allocation of Los Angeles's proposed Overpaid CEO Tax, estimated at $500 million annually. A cartoon figure carrying a large money bag with a dollar sign represents the tax revenue. The funds are divided into four stacks of cash, drawn at proportional heights: $350 million (70%) for affordable housing for working-class families, illustrated with small houses; $100 million (20%) for street and sidewalk repair, shown with a traffic cone; $25 million (5%) for after-school programs, depicted with a schoolhouse; and $25 million (5%) for grocery stores, shown with a storefront. Source: Los Angeles Times. Sketch by Doug Neill, www.VerbalToVisual.com.

The first, and by far the largest, at 70% (or $350 million), will go toward building affordable housing for working-class families. Which will result in 350 new units (if you believe the detractors) or tens of thousands of new units (if you believe the supporters). So it’s likely somewhere in between those two numbers.

The second bucket gets 20%, or an estimated $100 million annually. That will go toward street and sidewalk repair.

The third and fourth buckets each get 5% (or $25 million). That money will support after-school programs and bring healthy foods into grocery stores in areas where there are currently not great options.

The slogan from the proponents of this legislation is: “Taxing greed to pay for what we need.” And it’s on the ballot in November.

Want to learn how to take visual notes like the ones you see here? Check out these resources.