Emanuel plans to halve employer head tax

Brendan ReillyChicago MayorRahm Emanuel

Mayor Rahm Emanuel this morning said he plans to cut in half the city’s so-called head tax, which requires larger companies to pay a tax of $4 a month for each person they employ.

Under his plan, which is all but certain to win City Council approval, Emanuel said the tax rate would drop next year to $2 from $4.

During the mayoral campaign, Emanuel said he wanted to phase out the head tax $1 a year over four years. Although he is accelerating that plan, Emanuel today said he will eliminate it by then end of 2014.

“This was a significant piece of helping us secure the 1,200 jobs at the Ford plant,” Emanuel told the council, referring to the recent announcement that the major car maker would add jobs in the city. “I want you to know how committed I am to it, and how important it is.”

Ald. Thomas Tunney, 44th, a longtime opponent of the tax, praised Emanuel for the move. “This, in my opinion, has been one of the most regressive taxes we put on our employers,” he said.

Also on board was Ald. Brendan Reilly, 42nd: “The head tax is a job killer. It is a sign on the highway that says, ‘Please, please, do not invest in the city of Chicago.’ ”

 

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