Overview
- The City Council’s Finance Committee voted 25–10 to defeat roughly $600 million in new revenues after efforts to delay the vote failed, including a 24–7 tabling of a recess motion and an 18–18 tie on a later delay.
- The plan’s centerpiece was a $21-per-employee monthly head tax on firms with 100 or more workers, briefly floated at a 200-employee threshold, with projected revenue of $82 million and $18 million earmarked for small-business grants.
- Critics warned the head tax would depress hiring, drive employers out of Chicago and worsen downtown vacancies, citing data showing higher homeowner tax bills as commercial values fall.
- Other proposed revenues included raising the cloud/software lease tax to 15%, a 50-cent-per-user social media amusement tax and higher harbor fees, with experts cautioning the social media levy could face legal challenges.
- Budget staff also outlined about $1.8 billion in borrowing for capital projects, settlements and retroactive pay, with roughly $50 million in total interest costs, as council leaders met Tuesday without a budget vote and outside allies launched a seven-figure campaign while warning of potential CPS layoffs tied to a $1 billion TIF shift; a balanced 2026 budget is due by Dec. 31.