Council Votes to Abolish 'Head Tax' - NBC Chicago
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Council Votes to Abolish 'Head Tax'



    Chicago's City council on Wednesday voted to abolish the city's "head tax," a $4 per-employee tax on all businesses with more than 50 workers. 

    Mayor Rahm Emanuel branded the tax a "job killer."

    "Eliminating the head tax is the right thing to do for businesses big and small," Emanuel said. "With this, Chicago can become an even better place to start a business."

    The city's head tax generated a total of $35 million in 2009 and 2010 combined, but Emanuel has promised to offset that revenue.

    He said phasing out the tax will help encourage businesses to hire more employees and the $20 million in revenue returned to them will increase consumer consumption.