UPDATE: Chicago Mayor Brandon Johnson is urgently pushing to save the controversial corporate head tax in his 2026 budget proposal, a move met with fierce resistance from the business community. Executives argue that the proposed $21 per employee tax will devastate local businesses and drive remote work trends, exacerbating existing economic challenges.
During a blitz on Thursday, Johnson emphasized the need for collaboration, stating, “We remain open to compromise and working with anyone on the council.” The corporate head tax targets companies with 100 or more employees working primarily in Chicago, aiming to tackle the city’s significant budget deficit. However, half of the City Council has expressed strong concerns about its implications.
Local business leaders, including Sam Toia, president of the Illinois Restaurant Association, have voiced alarm. “This is just not a good idea,” Toia warned. He highlighted that many midsized restaurants could be heavily impacted, potentially driving them to reduce in-office staffing to escape the tax’s reach. “What you’re going to see is companies telling their team members to work two days a week in the city, which will hurt our local dining establishments,” he added.
As the clock ticks toward a New Year’s Eve deadline for budget approval, Johnson is under pressure to balance fiscal responsibility with the needs of local businesses. He has also launched an online portal for aldermen to submit budget efficiency ideas, showcasing his commitment to transparency and collaboration.
In a related development, Johnson faced criticism for recent layoffs in city departments, including between 50 to 70 positions in the Chicago Department of Public Health due to expiring COVID-19 funding. While Johnson has assured no layoffs will occur, reports indicate that notices have already been sent out. “These are some reconfigurations because of the COVID dollars that have run out,” he explained.
Residents like Cheryl Robinson from Auburn Gresham are also feeling the financial strain, facing a nearly $1,000 increase in property taxes. “I wasn’t even expecting this amount,” she lamented, highlighting the personal impact of the city’s financial decisions.
As the debate heats up, stakeholders are urged to voice their opinions before the council’s crucial vote. Johnson’s proposed head tax could profoundly affect Chicago’s business landscape, making this an urgent matter for residents and business owners alike.
Stay tuned for further updates as this developing story unfolds.
