Chicago Business Leaders Urge Rejection of Mayor’s $21 Head Tax

BREAKING: Chicago’s business community is pushing back hard against Mayor Brandon Johnson’s controversial proposal for a $21 corporate head tax per employee, a key element of his nearly $17 billion budget plan. As concerns mount, industry leaders warn that this tax could further undermine the city’s economic recovery.

On Wednesday, lunchtime crowds filled the bustling streets of the West Loop, signaling a potential rebound for downtown businesses. However, restaurant owners like Scott Weiner, co-owner of the Fifty/50 Restaurant Group, fear that the proposed head tax could deter companies from bringing employees back to the office. “Hybrid work is part of what’s destroying downtown’s vibrancy. We need people back at work,” Weiner stated, highlighting the urgent need for a vibrant workforce to sustain local businesses.

The mayor’s tax plan, touted as a necessary investment in public safety, has faced fierce opposition. The Civic Committee labeled the head tax as a detrimental move for business growth. Committee President Derek Douglas criticized the proposal, saying, “You don’t put in a policy that will hurt growth, that will hurt the tax base… to solve this other problem.” The committee argues that the tax impacts a significant portion of jobs in the city, contradicting the mayor’s claim that only three percent of businesses would be affected.

A new report from the Federal Reserve adds to the urgency, projecting a staggering 39.75% decline in hiring across Chicago over the next year—the lowest hiring outlook since March 2020, during the pandemic. This alarming forecast raises questions about the city’s economic stability and the viability of new tax measures.

While Gov. J.B. Pritzker has expressed opposition to the head tax, the pressure on City Hall intensifies as business leaders and lawmakers grapple with budgetary challenges. With discussions ongoing, the potential for prolonged wrangling over revenue and spending could extend into the end of the year.

As the debate unfolds, it is crucial for Chicagoans to stay informed about how these developments could impact local businesses and the broader economic landscape. The urgency of the situation cannot be overstated—businesses are calling for immediate action to protect jobs and ensure the city’s recovery continues unabated.

Stay tuned for further updates as this critical situation develops.