Overview
- The panel voted 25-10 to reject roughly $600 million in new revenues centered on a $21-per-employee monthly head tax, along with increases to the cloud tax and a new social-media fee.
- Finance Chair Pat Dowell’s motion to recess was tabled 24-7 and a later bid to postpone failed in an 18-18 tie, leading to the decisive vote.
- Mayor Brandon Johnson defended the corporate levy and said he would veto any budget that raises property taxes, increases garbage fees, or reinstates a grocery tax.
- After briefly proposing to apply the head tax only to firms with 200+ workers, the administration reverted to 100+ and earmarked $18 million for small-business grants in distressed areas, but the revisions did not secure support.
- With a projected $1.19 billion gap and a year-end deadline, talks will continue as opponents push spending cuts and efficiencies over new business taxes ahead of the planned Dec. 2 session.