URGENT UPDATE: Chicago’s business community is sounding the alarm over Mayor Brandon Johnson‘s proposed $21 corporate head tax, a move seen as a significant threat to the city’s economic recovery. Just announced, this tax would charge businesses $21 per month for every employee working in a city office for at least half the time, igniting fierce backlash from leading business groups and the restaurant industry.
The proposal, included in Johnson’s nearly $17 billion budget, is being labeled a potential setback for Chicago’s downtown revitalization efforts. “The Downtown Loop right now is quite vibrant, and it’s getting better every day,” said Scott Weiner, co-owner of the Fifty/50 Restaurant Group. However, he warns that the head tax could deter companies from bringing employees back to the office, further jeopardizing the vibrancy of the area.
Recent data from the Federal Reserve paints a grim picture for Chicago’s job market, projecting a staggering 39.75% decline in hiring over the next year—the lowest since March 2020 during the pandemic. This alarming statistic highlights the fragile state of the local economy as businesses struggle to bounce back.
The Civic Committee has publicly criticized the head tax, labeling it a “hostile move against business.” President Derek Douglas stated, “You don’t put in a policy that will hurt growth… to solve this other problem.” He argues that the mayor’s assertion that only 3% of businesses will be affected is misleading, emphasizing that the real issue is the significant number of jobs taxed.
As the debate intensifies, city officials are also raising concerns about other aspects of Johnson’s budget, suggesting that ongoing negotiations over revenue and spending could extend until the end of the year. The pressure is mounting on City Hall to reconsider this proposed tax and explore alternative revenue sources.
With the business community united against the head tax, the implications of this policy could have lasting effects on Chicago’s economy. As this situation develops, stakeholders are urging the mayor to find solutions that support growth rather than hinder it.
Stay tuned for more updates as this critical issue unfolds, impacting businesses and employees across Chicago.
