Chicago's Corporate Exodus: A Taxing Problem

A City in Crisis

Chicago's downtown area was once a hotspot for big companies. United Airlines, Kraft Heinz, and McDonald’s all moved their headquarters there. The city was seen as a great place to be. But that was less than a decade ago. Now, things have changed.

The pandemic hit hard, and downtown Chicago hasn't bounced back like New York City. The city is in a tough spot financially. Mayor Brandon Johnson says the city's money problems are at a crisis point. He and his allies think they have a solution: a new tax on big companies.

The Proposed Tax

An advocacy group called the Institute for the Public Good suggests a 5% tax on companies for employees making over $200,000. They think this could bring in $1.5 billion a year. They point to Seattle's similar tax, which brought in a lot of money at first.

The Catch

But there's a catch. Seattle's tax didn't meet expectations last year. Big companies moved jobs out of Seattle to avoid the tax. Amazon, for example, shifted jobs to Bellevue. Seattle's mayor admitted that businesses will make choices based on their bottom line.

Chicago's High Taxes

Chicago already has high taxes. Adding another big tax could push more companies to leave. United Airlines has been talked about moving to Denver. Citadel, a big hedge fund, already moved to Miami. Losing these companies means losing jobs and spending power.

The Impact on the City

Progressives might not care about losing a few billionaires, but losing hundreds of well-paid jobs hurts the city. Keep pushing companies away, and Chicago might need to raise taxes even more. That's how cities go downhill.