Nearly a year ago the restaurant industry welcomed Mayor Richard Daley’s repeal of the monthly $4-a-worker head tax on employers with 50 or more workers. His commitment was to reduce the head tax each year until it was phased out completely.
This tax has always been an onerous tax, punishing those who employ people and run a business in Chicago. It puts a tremendous burden on businesses with numerous employees, such as restaurants.
The restaurant industry is labor-intensive and operates on a slim profit margin. Considering the amount of time and money that goes into operating a restaurant, every tax saving can make a difference.
The restaurant industry creates the opportunity for many entry-level positions. The head tax is just one more tax that increases the cost of doing business in Chicago. We need to encourage, not penalize, our small businesses in Chicago for creating new jobs.
I hope that Mayor Daley reconsiders his decision before we lose potential new businesses or current businesses to other cities.
