Chicago City Wire

The Chicago City Council's finance committee has voted against Mayor Brandon Johnson’s proposed head tax, a measure that would have charged businesses a fee for each employee they hire. The proposal faced criticism from business groups and political leaders who argued it would hinder economic recovery in the city.

Austin Berg, executive director of the Chicago Policy Center at the Illinois Policy Institute, responded to the decision with a statement: “The committee made the right decision by rejecting Mayor Johnson’s head tax proposal. There is no environment in which this tax is a good idea for the city.

“Chicago businesses are still reeling from the pandemic and office vacancy is at a record high. The city can’t afford to make it even harder to hire or do business in the city. But that’s exactly what charging businesses a fee for each job they create would do – and it would be disastrous for Chicagoans who want to work here.

“Gov. J.B. Pritzker, Illinois House Speaker Emanuel ‘Chris’ Welch and other Illinois leaders have explicitly condemned this proposal. We are relieved that the committee agreed.

“This was the right call for working Chicagoans. The next step is for the City Council to reject this tax outright and pursue the only reforms that will actually strengthen Chicago’s finances: spending restraint, structural efficiencies and a government that lives within its means.”

The head tax proposal had been met with opposition from state officials as well as local business leaders, who said it could further harm an economy already affected by high office vacancies following the COVID-19 pandemic.