In an effort to gain more support for his budget proposal, Chicago Mayor Brandon Johnson on Monday unveiled a revised version of his contentious corporate head tax. This move aims to address concerns and secure the necessary votes for approval.
However, this adjustment may face resistance as opponents within the Chicago City Council stand firm. They are preparing to introduce an alternative budget plan as early as Wednesday, signaling a potential clash over fiscal strategies.
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The mayor’s updated proposal targets Chicago businesses with over 500 employees, imposing a charge of $33 per employee each month. This is a shift from the initial plan, which aimed at companies with more than 100 employees, levying a $21 monthly fee per employee.
Mayor Johnson emphasizes that this “community safety surcharge” is designed to affect approximately 175 of the city’s largest corporations. He argues the financial impact is minimal, noting, “The community safety surcharge would account for roughly .0008% of their annual revenue. That’s less than 1,000th of a percent.”
While the revision aims to shield small to mid-sized businesses from financial strain, critics maintain that the principle behind the tax is detrimental to business interests. Despite the changes, opponents remain steadfast in their opposition, asserting that the new plan does not alter their fundamental concerns.
And while the new plan might protect small to mid-size companies from the pain, opponents say, philosophically, it is bad for business, and it will not change their minds.
Ald. Pat Dowell, the influential chair of the finance committee, remains staunchly opposed.
“I think this the current proposal is making a bad policy even worse,” Dowell said.
Ald. Brendan Reilly represents the city’s 42nd Ward.
“All these small inputs, like a head tax determine whether or not a big employer moves to a city like Chicago, and this is simply another symbol of why you shouldn’t come here. And I think it’s a big, big mistake,” Reilly said.
But the mayor is counting on big companies being willing to pay the price and stay in Chicago even if they oppose the head tax.
“These huge corporations are not going to make a financial decision based upon what essentially could be a rounding error,” Johnson said.
But it is the decisions of a majority of council members that the mayor needs to focus on first, with 27 now supporting an alternative budget.
“If it’s prepared and ready to go tomorrow, we’ll introduce it tomorrow, and if not, we’ll introduce it later,” said 39th Ward Ald. Samantha Nugent.
The mayor seems confident that his plan will get passed.
“Now, in terms of when we actually put it up on the board, we’ll talk with our IGA team. I’m ready to go now, right? I mean that I believe that the budget that I presented was ready to go,” Johnson said.
So, it is possible that the alderpersons or even the mayor could introduce a budget plan Wednesday, though that seems unlikely at this point. What it will come down to is which side believes they have the 26 votes needed to pass the budget, which has to be done by the end of the year.
