Emanuel: Chicago Tax Repeal Key To Ford Jobs

Chicago Mayor Rahm Emanuel has introduced a measure to repeal the city’s head tax on company employees. And he says the proposed repeal is why Ford is agreeing to create 1,100 more jobs in the Windy City.

 Photo by Slobodan Stojkovic via Flickrobs in his city.

Chicago charges $4 per person per month to companies with 50 or more employees in the city. The mayor, who proposed the repeal to city council this week, calls it a “job killer,” according to our partner station WBEZ.

He said the proposed repeal, which would reduce city revenue by $23 million, is already making the city more attractive to companies like Ford.

As part of a new contract with the United Auto Workers, the company is pledging to add 12,000 jobs nationwide. Government officials said earlier this week that the company would add 1,100 jobs at the Chicago Assembly Plant, and possibly 900 more at a stamping plant.

Workers are voting on the contract now.

The proposed repeal “has been a significant piece in our ability to win those jobs at that Ford plant and add a third shift in the Ford plant in the city of Chicago,” the mayor said.

Currently, Ford employs 3,500 people at its Chicago plants. Removing the head tax would save the company $168,000 a year at those factories. If Ford were to add the additional 2,00 jobs, it would not have to pay an additional $96,000 annually.

Meanwhile, Ford might get even more help from the state of Illinois. The Chicago Tribune reported today company officials are in talks with Gov. Pat Quinn’s office about an incentive package. The governor declined to be specific, saying the negotiations are continuing.

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