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L.A. unions push new tax on companies with ‘overpaid’ CEOs

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L.A. unions push new tax on companies with ‘overpaid’ CEOs

A group of Los Angeles labor unions is proposing a ballot measure they say would combat income inequality in the city by raising taxes on companies whose chief executive officers make at least 50 times more than their median-paid employee.

The so-called Overpaid CEO Tax initiative was announced Wednesday at a rally outside Elon Musk’s Tesla Diner in West Hollywood, and featured union workers holding signs that read “Taxing greed to pay for what we need,” and a cartoon cutout of a boss carrying money bags and puffing a fat cigar.

“It’s high time the rich paid more taxes,” said Kurt Petersen, the co-president of Unite Here Local 11, which represents airport and hotel employees.

Sister Diane Smith of Clergy and Laity United for Economic Justice joins the Fair Games Coalition at a rally in West Hollywood on Wednesday.

(Genaro Molina / Los Angeles Times)

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The proposal is sponsored by the Fair Games Coalition, a collection of labor groups that includes the Los Angeles teachers union, and comes on the heels of a statewide ballot proposal for a one-time 5% wealth tax on California billionaires that would raise money for healthcare for the most vulnerable.

Revenues raised by the CEO tax would be earmarked for specific purposes and not go directly to the city’s general fund.

According to proponents, 70% would go to the Working Families Housing Fund; 20% would go to the Street and Sidewalk Repairs Programs and 5% would go both to the After-School Programs Fund and the Fresh Food Access Fund.

In order to place the measure on the November ballot, supporters must collect 140,000 signatures in the next 120 days.

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Critics say the proposal is misguided and would drive business away from the city.

“It would encourage companies that have minimal contact and business in Los Angeles to completely pull out,” said Stuart Waldman, head of the Valley Industry & Commerce Assn. “You’ll never see another hotel built in Los Angeles. It’s just one more thing that will drive business away.”

He added that $350 million for affordable housing would create about 350 units of affordable housing per year, which would not do much to affect the city’s housing crisis.

“That does nothing to help people. But on the contrary, that tax would do more to hurt people by pushing businesses out of Los Angeles and pushing jobs out of Los Angeles,” he said.

United Teachers-Los Angeles President Cecily Myart-Cruz said teachers support the proposal because it would not only raise money for after-school programs, but also help teachers find housing in L.A.

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“They can’t live where we teach, because the prices are out of reach,” Myart-Cruz said.

Supporters argue that the tax will not chase businesses out of Los Angeles.

Kurt Petersen, co-president of UNITE HERE Local 11, speaks at a rally.

Kurt Petersen, co-president of Unite Here Local 11, speaks in favor of a measure that would increase taxes on companies whose chief executive officers make at least 50 times more than their median paid employee.

(Genaro Molina / Los Angeles Times)

“Sure if they want to leave the second largest market in the country, go for it. But no one’s leaving that,” Petersen said.

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The ordinance, if passed by voters, would impose an additional tax of up to 10 times the company’s regular business tax, based on the pay difference between the highest-paid employee at the company and the lowest, the initiative said.

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.

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Video: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says

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Video: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says

new video loaded: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says

On the fifth day of the war in Iran, Defense Secretary Pete Hegseth said that the U.S. military operation was intensifying and that more warplanes were arriving in the region.

By Christina Kelso

March 4, 2026

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US submarine sinks Iranian warship by torpedo in a first since World War II

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US submarine sinks Iranian warship by torpedo in a first since World War II

NEWYou can now listen to Fox News articles!

A U.S. submarine sank a prized Iranian warship by torpedo, the first such sinking of an enemy ship since World War II, Secretary of War Pete Hegseth said Wednesday morning.

Hegseth joined Chairman of the Joint Chiefs of Staff Gen. Dan Caine at the Pentagon to provide an update to reporters on “Operation Epic Fury” in Iran.

“An American submarine sunk an Iranian warship that thought it was safe in international waters,” Hegseth said. “Instead, it was sunk by a torpedo. Quiet death. The first sinking of an enemy ship by a torpedo since World War Two. Like in that war, back when we were still the War Department. We are fighting to win.”

Caine said that an Iranian vessel was “effectively neutralized” in a Navy “fast attack” using a single Mark 48 torpedo. He added that the U.S. Navy achieved “immediate effect, sending the warship to the bottom of the sea.”

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WATCH HEGSETH’S ANNOUNCEMENT:

Hegseth said that the U.S. Navy sank the Iranian warship, the Soleimani. The flagship was named for Qasem Soleimani, an Iranian military officer who served in the Islamic Revolutionary Guard Corps who the U.S. killed in a January 2020 drone strike during President Donald Trump’s first term.

“The Iranian Navy rests at the bottom of the Persian Gulf. Combat ineffective, decimated, destroyed, defeated. Pick your adjective,” Hegseth said. “In fact, last night we sunk their prize ship, the Soleimani. Looks like POTUS got him twice. Their navy, not a factor. Pick your adjective. It is no more.”

This map shows U.S. and Israeli strikes against Iranian naval forces as of March 1. (Fox News)

Hegseth also told reporters at the briefing that the U.S. and Israel will soon achieve “complete control” over Iranian airspace after Iran’s missile capabilities were drastically diminished in the four days of fighting.

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US ‘WINNING DECISIVELY’ AGAINST IRAN, WILL ACHIEVE ‘COMPLETE CONTROL’ OF AIRSPACE WITHIN DAYS, HEGSETH SAYS

“More bombers and more fighters are arriving just today and now, with complete control of the skies, we will be using 500 pound, one thousand pound and 2,000 pound laser-guided precision gravity bombs, of which we have a nearly unlimited stockpile,” he said.

The war has killed more than 1,000 people in Iran and dozens in Lebanon, while U.S. officials said six American troops were killed in a fatal drone strike in Kuwait.

Thousands of travelers have been left stranded across the Middle East.

This map shows security and travel updates for Americans regarding countries in the Middle East region. (Fox News)

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Caine told reporters that the U.S. military is helping thousands of Americans stranded in the Middle East after the U.S. State Department urged citizens to leave more than a dozen countries.

Fox News Digital’s Ashley Carnahan contributed to this report.

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Sen. Padilla preps for Trump trying to seize control of elections via emergency order

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Sen. Padilla preps for Trump trying to seize control of elections via emergency order

Sen. Alex Padilla (D-Calif.) is preparing for President Trump to declare a national emergency in order to seize control of this year’s midterm elections from the states, including by bracing his Senate colleagues for a vote in which they would be forced to either co-sign on the power grab or resist it.

In the wake of reporting last week that conservative activists with connections to the White House were circulating such an order, Padilla sent a letter to his Senate colleagues Friday stating that any such order would be “wildly illegal and unconstitutional,” and would no doubt face “extremely strict scrutiny” in the courts.

“Nevertheless, if the President does escalate his unprecedented assault on our democracy by declaring an election-related emergency, I will swiftly introduce a privileged resolution [and] force a vote in the Senate to terminate the fake emergency,” wrote Padilla, the ranking Democrat on the Senate Committee on Rules and Administration.

Padilla wrote that such an order — which could possibly “include banning mail-in voting, eliminating major voting registration methods, voter purges, and/or new document barriers for registering to vote and voting” — would clearly go beyond Trump’s authority.

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“Put simply, no President has the power under the Constitution or any law to take over elections, and no declaration or order can create one out of thin air,” Padilla wrote.

The same day Padilla sent his letter, Trump was asked whether he was considering declaring a national emergency around the midterms. “Who told you that?” he asked — before saying he was not considering such an order.

The White House referred The Times to that exchange when asked Tuesday for comment on Padilla’s letter.

If Trump did declare such an emergency, a “privileged resolution,” as Padilla proposed, would require the full Senate to vote on the record on whether or not to terminate it — forcing any Senate allies of the president to own the policy politically, along with him.

Experts say there is no evidence that U.S. elections are significantly affected or swung by widespread fraud or foreign interference, despite robust efforts by Trump and his allies for years to find it.

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Nonetheless, Trump has been emphatic that such fraud is occurring, particularly in blue states such as California that allow for mail-in ballots and do not have strict voter ID laws. He and others in his administration have asserted, again without evidence, that large numbers of noncitizen residents are casting votes and that others are “harvesting” ballots out of the mail and filling them out in bulk.

Soon after taking office, Trump issued an executive order purporting to require voters to show proof of U.S. citizenship before registering and barring the counting of mail-in ballots received after election day, but it was largely blocked by the courts.

Trump’s loyalist Justice Department sued red and blue states across the country for their full voter rolls, but those efforts also have largely been blocked, including in California. The FBI also raided an elections office in Georgia that has been the focus of Trump’s baseless claims that the 2020 presidential election was stolen from him.

Trump is also pushing for the passage of the SAVE Act, a voter ID bill passed by the House, but it has stalled in the Senate.

In recent weeks, Trump has expressed frustration that his demands around voting security have not translated into changes in blue state policies ahead of the upcoming midterm elections, where his shrinking approval could translate into major gains for Democrats.

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Last month, Trump wrote on his Truth Social platform, “I have searched the depths of Legal Arguments not yet articulated or vetted on this subject, and will be presenting an irrefutable one in the very near future. There will be Voter I.D. for the Midterm Elections, whether approved by Congress or not!”

Then, last week, the Washington Post reported that a draft executive order being circulated by activists with ties to Trump suggests that unproven claims of Chinese interference in the 2020 election could be used as a pretext to declare an elections emergency granting Trump sweeping authority to unilaterally institute the changes he wants to see in state-run elections.

Election experts said the Constitution is clear that states control and run elections, not with the executive branch.

Democrats have widely denounced any federal takeover of elections by Trump. And some Republicans have expressed similar concerns, including Sen. Mitch McConnell (R-Ky.), who chairs the Senate rules committee.

In the Wall Street Journal last year, McConnell warned against Trump or any Republican president asserting sweeping authority to control elections, in part because Democrats would then be empowered to claim similar authority if and when they retake power.

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McConnell’s office referred The Times to that Journal opinion piece when asked about the circulating emergency order and Padilla’s resolution.

Padilla’s office said his resolution would be introduced in response to an emergency declaration by Trump, but hoped it wouldn’t be necessary.

“Instead of trying to evade accountability at the ballot box,” Padilla wrote, “the President should focus on the needs of Americans struggling to pay for groceries, health care, housing and other everyday needs and put these illegal and unconstitutional election orders in the trash can where they belong.”

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