City head tax to roll away in 2014

Mayor will first cut tax in half for next year

At Wednesday's City Council meeting, Mayor Rahm Emanuel announced he will cut the employee expense tax in half, from $4 to $2, a step toward eliminating the tax completely in 2014. Read the press release here.

Ald. Tom Tunney of the 44th ward has been pushing for this and expressed his support, calling the head tax regressive. Tunney has been fighting the head tax since 1995, he said. Former Mayor Richard M. Daley thwarted all of Tunney's attempts since the alderman was appointed in 2002.

According to the Chicago Sun-Times, Daley's father, former Mayor Richard J. Daley put the tax in place to avoid a city income tax in 1974. Since then, the Daleys made a few changes to the tax but it's essentially stayed the same until Wednesday.

Not every business pays this head tax. To qualify, businesses must: