Emanuel plans to repeal city head tax

October 6, 2011

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Mayor Emanuel promised a repeal of the head tax in his Mayoral campaign.

The mayor introduced a measure to the city council this week that will cut the head tax in half next year and do away with it by 2014.

If a company in Chicago employs more than 50 people, it has to pay four dollars a month for every employee. Mayor Rahm Emanuel calls this head tax a "job killer."

He says cutting the head tax has already made Chicago more attractive to businesses such as Ford - which recently announced it wants to add jobs to its South Side plant.

"This has been a significant piece in our ability to win those jobs at that Ford plant and add a third shift in the Ford plant in the city of Chicago," he said.

Eliminating the head tax will drop the city's annual revenue by $23 million. His administration said in a press release that the lost revenue will be offset by other reductions in the 2012 budget. The mayor will present his full budget proposal next week.