Chamber Prevails Over Head Tax, Saving Members Millions
After fighting to eliminate the oppressive $4 per month employee “head tax” for years, the Chamber is thrilled it will be phased out by 2014 under an ordinance proposed by Mayor Emanuel. Chicago businesses will see the tax cut to $2 in 2012, followed by another $1 slashed in each following year.
The head tax applies to about 2,700 companies with more than 50 employees in Chicago, and many Chamber members have felt the effects of the regressive tax. The Chamber has worked hard on behalf of its membership, which will enjoy millions of dollars in savings as a result of the cut.
Several Chamber members are expected to save over a half million dollars per year once the tax is eliminated completely in 2014. Wal-Mart, for example, will save about $1 million each year.
Advocate Health Care, Walgreen Co., J.P. Morgan Chase, and AT&T Illinois look to save between $600,000 and $750,000 per year, while Resurrection Health Care should save almost $500,000.
For years businesses have complained about the head tax as an unnecessary and burdensome regulation that put Chicago at a competitive disadvantage with other cities. By eliminating the head tax, there is now an opportunity to create stability for all businesses operating within the city.
“This is precisely the type of action we have pushed for from city hall to spur hiring in Chicago,” said Jerry Roper, President and CEO of the Chicagoland Chamber.