# Business groups vow to block Mayor Johnson's latest try at a head tax and a 20% cloud tax

> Business groups plan full-court press to block Chicago mayor's head tax and cloud tax proposals.
- Title: Business groups vow to block Mayor Johnson's latest try at a…
- Summary: Business groups plan full-court press to block Chicago mayor's head tax and cloud tax proposals. Chicago business groups will oppose Mayor Johnson's proposed…
- Keywords: chicago, mayor brandon johnson, head tax, cloud tax, business groups, city council, 2027 budget, corporate tax, civic committee, chicagoland chamber of commerce, news, local
- Source: Chicago Sun-Times — https://chicago.suntimes.com/city-hall/2026/10/21/business-community-reaction-mayor-brandon-johnson-2027-budget-corporate-head-tax
- Published: 2026-10-21T19:35:55.173+00:00
- Read time: 2 min
- Topics: chicago, mayor brandon johnson, head tax, cloud tax, business groups, city council, 2027 budget, corporate tax, civic committee, chicagoland chamber of commerce, news, local
## Business groups vow to block
Business groups vow to block Mayor Johnson's latest try at a head tax and a 2.0% cloud tax.
## Mayor Johnson's budget plan
Mayor Brandon Johnson presents his $17.6 billion 2027 budget during a City Council meeting.
## Civic Federation President says
Civic Federation President Joe Ferguson says Johnson's head tax proposal shows 'the work that last year’s volatile budget cycle made clear was necessary, simply has not been done one year later'.
## Chicagoland Chamber President says
Chicagoland Chamber of Commerce President Jack Lavin says business community will join Civic Committee to block head tax and cloud tax increase.
## Cloud tax impact
Cloud tax impacts businesses of all sizes by taxing software and leased equipment for digital advertising and product distribution.
## Cloud tax rate
The cloud tax increase is 20 percent, a rate that the Chicago Chamber of Commerce says is 'not anywhere in the nation where there’s a 20% sales tax'.
## One Future Illinois says
One Future Illinois president Mike Ruemmler says they will spend 'hundreds of thousands of dollars' to educate voters and alderpersons.
## Zoning Committee Chair says
Zoning Committee Chair Gilbert Villegas says cloud tax will fall heavily on 'folks using Microsoft 365 who are not millionaires'.
## Ald. Andre Vasquez says
Ald. Andre Vasquez supports cloud tax increase to 20% but opposes borrowing $480 million for police settlement.
## Ald. Vasquez on police funding
Ald. Vasquez says city credit ratings keep going down making borrowing harder for the $364 million pension payment.
## Last year's budget rejection
Last year, a 31-member coalition rejected corporate head tax and pushed through alternative budget with video gambling terminals.
## Police budget freeze
City plans to freeze 368 police officer vacancies to cut personnel costs by $34.4 million in 2027.
## Police budget increase
Chicago Police Department's annual budget rises from $2.12 billion to $2.24 billion in 2027.
## Stonepeak payment
Stonepeak Partners' $75 million payment tied to Chicago parking meters may cover $364 million pension payment.
## Sports betting tax
Sports Betting Alliance says doubling Chicago sports betting tax will drive fans out of state-licensed sportsbooks.
## What happens next
Business groups vow to block Mayor Johnson's head tax and cloud tax proposals in city's 2027 budget.
## Key takeaway

Chicago business groups will oppose Mayor Johnson's proposed head tax and 20% cloud tax increase in the city's 2027 budget.