Thursday, October 6, 2011

Mayor Rahm Emanuel’s surprise: Cuts ‘job killer’ head tax in half - Chicago Sun-Times

Mayor Rahm Emanuel’s surprise: Cuts ‘job killer’ head tax in half - Chicago Sun-Times
Emanuel campaigned on a promise to phase out the head tax over four years by lopping off $1 from it each year.

But he opted to do it twice as fast — and eliminate the tax entirely by July 2014 — because the deal that nailed down as many as 2,000 new jobs at a Far South Side Ford plant was contingent on the phase out.

“This was a significant piece of helping us secure the 1,200 jobs at the Ford plant and what they’re gonna add also to the stamping plant across the street. It’s another 700” jobs, the mayor said.

Emanuel noted that every one of the city’s 50 aldermen has heard business owners speak “in very colorful language” about how much they despise the head tax and how big a disincentive it is to creating the jobs Chicago so desperately needs.

“We’re gonna cut this tax. I pledged in the campaign $1 per year to eliminate it by the end. [But] my budget will start the first year with the elimination of $2 and cut it in half,” the mayor said, without saying how he would make up the $23 million in lost revenue.

The head tax applies to roughly 2,700 Chicago companies with more than 50 employees who are taxed at a rate of $4 per employee, per month.
Now let's bring most of those new jobs that could come to Chicago as a result of the repeal of this tax to the 6th Ward!

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