From Chicago Sun-Times · · 2m
Mayor Johnson renews fight for his failed corporate head tax
Mayor Johnson pushes corporate head tax despite past rejection.
In brief
Mayor Johnson pushes corporate head tax despite past rejection. Mayor Brandon Johnson is reviving his failed corporate head tax proposal to raise $101 million annually, facing opposition from 29 alderpersons who rejected it a year ago. Originally reported by Chicago Sun-Times.
Mayor Johnson's corporate head tax
Mayor Brandon Johnson is resurrecting his failed corporate head tax proposal for his re-election budget.
Budget proposal details
The tax would charge $25 per employee monthly on businesses with over 125 workers to generate $101 million annually.
Tax credit for disadvantaged areas
Businesses in socio-economically disadvantaged areas get a full rebate on the tax to offset costs.
Opposition coalition
29 alderpersons rejected the head tax a year ago, setting three boundaries for the budget debate.
Property tax freeze
Johnson froze property taxes and avoided state funding to follow two of three guidelines.
Corporate tax resistance
Business leaders likely call Johnson's measure a job killer despite the tax's progressive branding.
Johnson's justification
Johnson claims corporations must pay their fair share as wealth gaps widen between CEOs and workers.
Personal property lease tax
The PPLT tax on personal property leases will rise 33% to $234 million in 2027, with rates increasing to 20%.
Sports betting tax
The tax on sports betting will nearly double to 20% to match the amusement tax, generating $37 million.
Legal challenges
Major sportsbooks are suing the city over sports betting tax authority, risking the tax's survival.
Pension payment
The budget includes $360 million for advanced pension payments beyond statutory requirements.
Budget stalemate
Retiring Ald. Matt O'Shea predicts a long, protracted budget battle that could extend past the deadline.
Tax impact concerns
O'Shea warns the tax is at the breaking point and could trigger backlash from businesses and residents.
Johnson's fallback
Johnson says he will evaluate revenue options if the head tax is rejected again.
Budget priorities
Johnson emphasizes investments in young people, libraries, and community violence intervention.
Next steps
Johnson will deliver his fourth budget message to the City Council Wednesday, followed by two weeks of hearings.
What to remember
Mayor Brandon Johnson is reviving his failed corporate head tax proposal to raise $101 million annually, facing opposition from 29 alderpersons who rejected it a year ago.
