UPDATE: Chicago Mayor Brandon Johnson has reaffirmed his commitment to the controversial corporate head tax proposal, despite significant opposition from the City Council. Just two weeks after the finance committee voted against his budget plan, Johnson is pushing forward with his agenda as 26 alderpeople unveil an alternative budget that seeks to eliminate the head tax while increasing garbage collection fees.
During a press conference on Tuesday morning, Johnson expressed his determination, stating, “Corporations are making a killing right now,” as he addressed the struggles faced by families in Chicago. The proposed $21 per employee per month tax on businesses with over 100 employees is aimed at generating $100 million annually for a dedicated community safety fund. However, critics, including Governor JB Pritzker and various business groups, argue that the tax would drive jobs away from the city.
The alternative budget plan presented by the coalition of alderpeople seeks to remove the head tax while nearly doubling the city’s garbage collection fee from $9.50 to $18, with exemptions for seniors. It also proposes the addition of a 3 percent tax on off-premise liquor sales and aims to restore planned rideshare surcharge zones.
The recent developments come after the finance committee voted 25-10 against Johnson’s original budget, prompting opponents to call for a reevaluation of his proposals. In a letter outlining their alternative plan, the alderpeople emphasized that the head tax sends “the wrong message at a critical time” for Chicago businesses. They described the community safety fund as a “marketing effort” rather than a justified measure to impose new taxes on jobs.
Johnson has signaled he will veto any budget that includes an increase in garbage fees, which could complicate the approval of the alternative plan that requires 34 votes from the City Council. “They’re going to have to find 34 alders who can compel working people that they’re going to balance the budget off of their backs,” Johnson remarked, challenging his opponents’ efforts.
As budget negotiations intensify, the stakes are high for the city, with a final budget plan due by the end of the year. With the potential for significant changes in how Chicago funds public safety and city services, residents and local businesses are watching closely.
The situation remains fluid as both sides prepare for further discussions. Stay tuned for updates on this developing story.
