The tax seems like a bad idea to me as well, but in what way is it going to kill jobs? Doesn't it apply to Chicago-based and non-Chicago-based companies equally?
It does, but companies that are not located here cannot be compelled to collect the tax. Instead, citizens are supposed to voluntarily pay a "use tax". No one does.
OK, I can see that. Seems like a bit of a stretch though. Are you aware of any companies threatening to relocate?
This is the same argument that was made against requiring companies like Amazon to collect sales taxes, but that has been going on for a while now (including in Illinois as of this year) and the forecast layoffs and economic disaster have failed to materialize.