Chicago mayor says head tax would have prevented deficit

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – Chicago Mayor Brandon Johnson says his proposed corporate head tax would have prevented his administration’s projected budget shortfall of more than $130 million.

The mayor announced the projected deficit in this year’s $16.7 billion budget Tuesday and said there were other options.

“The corporate head tax, which was projected to bring in $100 million, would have prevented this shortfall,” Johnson said.

Last December, the city council rejected the mayor’s proposed $33 per-worker monthly tax on businesses with more than 500 employees.

The mayor said alternative revenue proposals from aldermen, including a provision to sell city debt to collectors, have not raised a single dollar.

“The interests of corporations projected that sticking debt collection on working Chicagoans would generate roughly $90 million in revenue. It has generated zero,” Johnson said.

In April, Chicago’s inspector general said the city is owed at least $8.1 billion and lacks the tools to collect the money.

The report showed that Chicago Public Schools workers alone owe more than $4 million, including overdue charges and unpaid fines.

The mayor said his progressive revenue measures, like taxes on social media and sports betting, have exceeded expectations while council-approved measures have failed.

“Their proposal to raise revenue through augmented reality and advertising on bridges and light poles have yet to raise a single dollar,” Johnson said.

He said he did not want to lay off workers or cut services.

“And I certainly don’t want to do that because of the failure of members of city council that were more aligned with the interests of corporations,” Johnson said.

The mayor allowed the budget to take effect Jan. 1 after choosing not to sign or veto it in December.

When asked, the mayor did not say whether or not he would seek a property tax increase, but he did say he recently spoke with Illinois House Speaker Emanuel “Chris” Welch, D-Hillside, about the next state budget.

“I do believe that there is still a path moving forward for a millionaire’s tax and a billionaire’s tax. He’s expressed his commitment to it,” Johnson said.

The Chicago City Council Committee on Budget and Government Operations did not discuss the 2026 Mid-Year Budget Report, released by the mayor’s office on Tuesday, at its meeting on Wednesday.

Alderman Jason Ervin promised that the committee would discuss the budget situation July 16, following the regular city council meeting July 15.