Chicago Mayor Brandon Johnson has vowed to not suggest property tax hikes to shut the town’s finances deficit, however floated the concept of quite a lot of company taxes to assist achieve this.
A type of taxes could be a “company head tax,” which might assess a tax for every worker massive companies make use of inside metropolis limits.
“It is an choice,” Johnson mentioned throughout a press availability Tuesday. “We’re on the tempo to construct 10,000 inexpensive properties. I additionally made a dedication to rent 200 extra detectives, proper? I mentioned, we will rent extra younger individuals. We will reopen psychological well being clinics. There are a whole lot of issues that I mentioned I used to be going to do. That is the proper time for us now to take a look at progressive means in order that we are able to proceed to reveal the constructive development right here.”
Throughout Johnson’s marketing campaign for mayor, he had proposed restarting the company head tax that former Mayor Rahm Emanuel had eradicated in 2011. Johnson had proposed imposing a $4 per worker tax on massive corporations, and anticipated that it might generate $25 million in annual income.
The town’s projected finances deficit for fiscal yr 2026 is $1.12 billion, resulting in huge questions on how the Johnson administration would shut the hole.
Whereas Johnson dominated out the concept of elevating property taxes, the town’s Chief Monetary Officer advised Bloomberg that such a rise was “seemingly” as a part of any resolution.
“It’s seemingly that that can be a part of the package deal,” CFO Jill Jaworski mentioned. “Once more, we’ve not rolled out the complete package deal but, however the package deal goes to incorporate cuts, and it’s going to embrace proposals for growing our revenues.”
Chicago’s chief monetary officer mentioned the town’s monetary challenges throughout an interview Tuesday with Bloomberg, explaining a property tax enhance is “seemingly” to plug the big gap within the 2026 finances.
Johnson insisted Tuesday that he as an alternative wished to pursue extra “progressive” types of income era.
“I’m going to go after progressive income. That’s what the individuals of Chicago and dealing class households specifically need to see us do,” he mentioned.
Johnson additionally floated the concept of levying a payroll expense tax on Chicago companies much like a tax in Seattle, in response to WTTW, amongst different concepts.
Johnson described Chicago as one of many wealthiest cities on this planet, and that he wished to discover ways in which its wealthiest residents paid their fair proportion.
“I believe it’s vital that we take a look at in a really significant approach how these people with means, significantly our billionaires and ultra-rich, who’ve benefitted from a rising financial system can put extra pores and skin within the sport,” he mentioned.
He dismissed concepts that such proposals would trigger millionaires and billionaires to flee the town.
“It is attention-grabbing as a result of millionaires, significantly within the metropolis of Chicago, that inhabitants has elevated by about 24%. They’re not leaving Chicago. So this notion in some way that we’re scaring millionaires away, it’s simply the alternative,” he argued.
Johnson has mentioned a working group will put collectively finances proposal and launch its findings as quickly as subsequent month.
