San Francisco voters rejected Proposition D, a proposed tax on high‑paid CEOs, with 53.6% voting “no” and just over 46% in favor, election officials reported Monday. Backed by labor unions as a way to fund city services, the measure was framed as a barometer of resident sentiment amid an AI‑driven cash influx reshaping the local economy.

Opponents included Mayor Daniel Lurie and tech founders Sergey Brin and Tony Xu, who each spent hundreds of thousands to defeat the initiative. The tax would have expanded a 2020 levy that targets firms with over 1,000 employees and revenues above $1 billion, raising rates and shifting the salary comparison from San Francisco medians to company‑wide averages. It could lift the rate by up to 0.5 %.

City analysis estimated the proposal would generate $250 million to $300 million annually but could eliminate roughly 940 local jobs. Critics warned the higher burden would push businesses out and slow post‑pandemic recovery, echoing broader debates over a billionaire tax slated for the California ballot. Voters’ rejection signals a centrist turn in a city once viewed as staunchly liberal.