Avoid the head tax

18 Mar

Before moving your business, make sure you check the tax rates. They are far from equal. Governing bodies are more desperate than ever for increased revenues. In addition to property taxes, income taxes, and sales taxes, you may end up with a head tax.

“What,” you may say, “is a head tax?”

I first experienced the head tax when working at a downtown Chicago condo association. I asked my boss what the head tax was, and if we seriously had to pay it. She told me the city of Chicago charged employers $5 per employee per month as a head tax. All employers had to pay it. I told her it obviously motivated employers to move to the suburbs. She agreed. She told me to pay it because as unwise as the tax was, the association still had to pay it. I processed the paperwork for 18 employees and sent the city a check.

I understand Chicago has since revoked and reinstated the head tax, this time at $4per employee per month. I feel the head tax is a bad idea. Employers who can open up shop in the city or in one of the eager suburbs like Arlington Heights, Elk Grove, or Oak Brook will find the suburbs more attractive. I understand the city and county of Denver have maintained a head tax and so has the state of Alaska.


Mark Anthony Germanos is the President of Cameron Park Computer Services, a premier Sacramento IT company providing IT services, IT solutions and IT support. Cameron Park Computer Services moves clients to the Cloud. “The Cloud is among the best IT solutions we’ve ever offered,” says Germanos, “I’ve been in the IT service and IT support business since 1992. When you run your business in the Cloud, your data is always available, available from anywhere and the cost is usually less. Does your IT company offer IT services, IT support and CloudU certified staff that can provide today’s IT solutions at affordable prices”? Cameron Park Computer Services does.


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