by Chicago, IL — Mayor Brandon Johnson has unveiled a revised corporate head tax proposal, drawing immediate criticism from Republicans and local watchdog groups who argue the plan prioritizes immigrants over Chicago citizens.
The announcement came Tuesday, following heavy pushback from city aldermen against Johnson’s earlier budget plan. Under the revised plan, Chicago companies with more than 500 employees would be subject to a $33-per-worker monthly tax, an increase from the previous $21-per-employee proposal.
Projected Revenue and Small Business Impact
Mayor Johnson estimates that the new head tax would affect roughly 175 companies, raising approximately $82 million in city revenue.
Chicago Budget Director Annette Guzman said the revised budget eliminates small business grants, a move designed to focus revenue collection on larger corporations.
Despite the adjustment, City Council Finance Committee Chair Pat Dowell expressed concern, stating that the prior $21-per-worker tax was a “proven job killer” and could discourage investment in the city. Dowell emphasized that aldermen are seeking a budget that better reflects the priorities of Chicago voters.
“From the beginning, we have been open to discussion and negotiation and remain committed to governing in good faith. In stark contrast to that approach, no other administration has relied on such public bullying,” Dowell wrote in an email to constituents.
Mayor Urges City Council Action
Following the announcement of the $33-per-worker tax, Mayor Johnson said it is now up to the city council to provide feedback and ultimately approve the budget.
By law, the council must pass a budget by Dec. 31, or risk disruptions to government programs, delayed worker pay, and potential downgrades to the city’s bond rating.
Johnson stressed that the head tax is not meant as a punishment for hiring workers and remains open to exploring other forms of progressive revenue generation.
Additional Proposed Taxes in $16 Billion Budget
In addition to the corporate head tax, Johnson’s $16 billion spending plan includes:
- An increased cloud tax
- A tax on social media platforms
- New taxes on sports betting and boat mooring
Opposition from Chicago Flips Red
The group Chicago Flips Red held a press conference at City Hall to oppose the mayor’s budget. Founder Zoe Leigh criticized the city for allegedly prioritizing services for people in the country illegally over Black Chicagoans.
“The Democratic Party has made sure that Black Americans, Black Chicagoans have been at the bottom like a caste system, and they have literally brought in other countries and made them the middle class that we are paying for,” Leigh said.
Vice President Danielle Carter-Walters added that the city is forcing citizens to “pay for immigrants who are in the country illegally.” She emphasized that tax dollars should protect residents and fund local services rather than benefit people without legal status.
Leigh and Carter-Walters also criticized the mayor for awarding executive raises to himself, department heads, and other city officials.
Upcoming City Council Meeting
The Chicago City Council is scheduled to meet Wednesday at 10:00 a.m., where the revised budget and corporate head tax proposal are expected to be key discussion points.
Do you think Chicago’s corporate head tax fairly balances business interests and city revenue needs, or does it place an unfair burden on employers?
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