Yesterday I wrote that the Service Employees International Union (SEIU) is concealing from voters that revenues from its Proposition D tax proposal on the San Francisco ballot would primarily benefit SEIU itself. But that’s not the only secret. The other is that SF taxpayers would hold SEIU’s giant investment portfolio harmless from any negative consequences of the tax. SEIU’s members are beneficiaries of $37 billion of pension investment assets held at SFERS, the San Francisco Employees’ Retirement System, which has more than 50% of its assets invested in public and private equities:
If Proposition D becomes law, the targeted businesses—some of which SFERS is invested in—would first try to cover the tax cost by raising prices or cutting jobs and wages. If they cannot, shareholders would see a decline in investment value. However, SEIU’s pensioners would be immunized from these consequences because San Francisco taxpayers are required to provide enough money to SFERS to ensure pensions are paid. This means SEIU members would receive a double benefit: more money from the tax revenue and protection for their pensions from the tax’s downside.
SEIU is no different than any rent-seeking corporation that makes money off of government spending.
