Gov. J.B. Pritzker told the Chicago Economic Club Oct. 21 that he absolutely opposes Mayor Brandon Johnson’s plan to revive the corporate “head tax” as part of his new budget proposal.
Gov. J.B. Pritzker told members of the Chicago Economic Club that he is absolutely opposed to Mayor Brandon Johnson’s $21 a month per employee corporate “head tax” proposal Oct. 21.
“I am absolutely, four-square opposed to a head tax for the city of Chicago,” Pritzker said. “It penalizes the very thing that we want, which is we want more employment.”
The governor expressed concerns that Johnson’s plan to reintroduce the Chicago “head tax” would further Illinois’ reputation as a bad place for business. Businesses in Chicago already pay the third-highest state corporate income tax rates in the nation. They also pay the highest commercial property taxes in the U.S.
This wouldn’t be the first “head tax” in Chicago or the first time Johnson has pushed it. Chicago previously levied a $4 per employee “head tax” on businesses with 50 or more workers between 1970 and 2014. It was phased out under former Mayor Rahm Emanuel, who believed eliminating the fee would spur economic development and job creation.
Pritzker in 2023 said he would veto another one of Johnson’s proposals, a tax on every financial transaction in the city, which would have required state approval. With Chicago staring down a projected $1.19 billion budget shortfall for 2026, will Johnson abandon the plan or once again begin taxing large employers for creating new jobs?
