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Chicago Finance Committee Rejects Johnson’s Tax Package, Stalling 2026 Budget

Johnson vows to keep the head tax in the plan, with veto threats for property, grocery or garbage hikes.

Overview

  • The City Council’s Finance Committee voted 25–10 to defeat the mayor’s roughly $600 million revenue plan after efforts to delay a vote failed on 24–7 and 18–18 procedural roll calls.
  • The centerpiece head tax would charge $21 per employee per month, with the latest version applying to firms with 100 or more workers and reserving $18 million for small-business grants in targeted areas.
  • Johnson’s team had floated a 200-employee threshold that lowered projected head-tax revenue to $82 million before reverting to the 100-employee design following pushback.
  • The rejected package also sought to raise the city’s cloud/software tax to 15%, add a social‑media “amusement” levy, increase boat‑mooring fees, and authorize about $1.8 billion in borrowing for capital needs, legal payouts and retroactive pay.
  • Opponents warned the head tax would discourage hiring and deepen downtown vacancies as homeowners face higher bills, citing a recent county analysis showing a sharp rise in median property tax burdens.