Youth organizations call for Chicago to keep corporate head tax in budget plan
A group of organizations that offer summer jobs to young people is encouraging city leaders to keep the proposed corporate head tax in next year's city budget, as proposed by Chicago Mayor Brandon Johnson.
The organization representatives spoke at a news conference Monday morning, saying that without the tax, they would be forced to cut thousands of jobs.
The tax is being called a "community safety surcharge." It amounts to a $21 per month per employee tax on businesses with more than 100 employees, also known as a head tax.
"We do not want to see over 5,000 cuts to youth jobs," said Itohan Osaigbovo, organizer of the Chicago Black Voter Project, "and we demand that the city of Chicago fund youth jobs by taxing the richest corporations."
A head tax was on the books in Chicago 1973 through 2014, It taxed companies with more than 50 Chicago-based employees $4 per employee per month.
That tax raised $35 million in its final year under Mayor Rahm Emanuel, who phased out the head tax starting in 2012, calling it a job killer.
When details first emerged about reinstating the head tax, an independent expert lambasted the idea. He said charging corporations $21 per employee would not bode well for business, and also said aldermen would not let the head tax fly.
Indeed they did not. The alders voted 25-10 against the mayor's tax package last month, with the head tax being a major sticking point.
The head tax was omitted from an alternative budget plan endorsed by 26 of the city's 50 alders last week.
Mayor Johnson in turn defended the head tax proposal, writing, "A safer city strengthens economic activity, attracts new investment, and broadens the tax base, all of which help reduce the long-term burden on taxpayers."
The organizations whose representatives gathered Monday said money raised from the fees will help keep young people employed, and out of trouble during the summer months.
The city must pass a budget plan by Dec. 31.