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Chicago Budget Standoff Deepens as Johnson Tests Scaled-Back Head Tax and Shutdown Threat Grows

Johnson is testing support for a scaled-back head tax to secure a budget majority.

Overview

  • Top aides are gauging council votes for a revised head tax of $33 per worker on companies with 500 or more employees, which the mayor’s office says could raise roughly $80–82 million.
  • A bloc of 26 aldermen is preparing a counterbudget that rejects any head tax and instead seeks nearly doubling the garbage fee, higher retail liquor charges, an expanded downtown rideshare surcharge and efficiencies.
  • Johnson challenged the group to bring its plan to a vote and restated he would veto any budget that raises property taxes or the garbage fee.
  • A weekend negotiating session ended without progress, leaving the city up against a Dec. 30 property tax levy deadline and a Dec. 31 budget deadline that officials warn could trigger an unprecedented shutdown if unmet.
  • Youth organizations pressed to keep the head tax to avoid thousands of summer job cuts, while opponents including Gov. J.B. Pritzker and business groups call it a job killer, and some aldermen warn the mayor’s borrowing and pension shifts could harm credit.