Editorial: Politicians in the know see head tax as bad idea

Boulder Mayor Matt Applebaum and the city council might want to place a phone call at 312-744-3300 to Chicago Mayor Rahm Emanuel, who, just five months into his first term in 2011, announced plans to eliminate the city’s head tax on employers. “The Head Tax is a job killer,” Emanuel said at the time. He eliminated the tax six months earlier than planned, in December 2013.

Or they might want to contact Colorado Gov. John Hickenlooper, who, when mayor of Denver but a gubernatorial candidate, described Denver’s head tax as “wrongheaded,” during a conversation on a local radio station.

Or, perhaps they could chat with current Denver Mayor Michael Hancock, who has voiced support for eliminating the city’s head tax.

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Or, maybe, just maybe, they could talk with business leaders in the city of Boulder, who could tell them they should not be penalized for bringing jobs to the city.

Alternatively, they could proceed down a wrongheaded, job-killing path, asking voters to assess a tax on employees. The Boulder City Council will consider just such a move in August, weighing a draft ordinance that could put a head tax on the ballot in November. First reading is scheduled for Aug. 4, with second reading slated for Aug. 18.

The measure – known as an occupational privilege tax – could include a tax of $2 to $5 per employee per month. That tax would be paid by the employee, with employers paying an equal amount. City staffers estimate that the tax could raise $3.4 million to $8.5 million annually.

What would it be used for? Ideas include funding a communitywide Eco Pass program, local and regional transportation improvements, affordable housing or capital-improvement projects.

These goals are laudable, but the city council should reflect that a head tax might be one blow too many for a business community already reeling from a series of new fees, mandates and restrictions. Consider what Boulder businesses have seen recently: affordable-housing linkage fees on new commercial development, mandatory composting and recycling requirements, a moratorium on taller buildings throughout much of the city, concerns over municipalization of the city utility – and more to come.

Call Rahm. Please.