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Johnson, Energized by Democratic Wins, Defends Corporate Head Tax in 2026 Budget

He says the levy is needed to protect services that support community safety.

Overview

  • The proposal would charge about $21 per employee per month on companies with at least 100 workers, generating roughly $100 million as part of $586.6 million in progressive revenues.
  • Gov. J.B. Pritzker, business groups and more than half of the City Council oppose the tax, arguing it would hamper hiring and deter investment, while the mayor calls it a modest burden for large firms.
  • S&P Global Ratings shifted Chicago’s outlook to negative after the city cut its discretionary pension advance to $120 million, signaling potential pressure on the bond rating.
  • Johnson’s plan relies on a record $1 billion TIF surplus to stabilize Chicago Public Schools, avert classroom cuts and support a new teachers contract, alongside short-term borrowing for firefighter back pay and police-related settlements.
  • A $50 million plan to buy and refurbish the former Greyhound station using Canal-Congress TIF funds drew transparency questions from Ald. Bill Conway, which the mayor rejected as he framed the terminal as a citywide necessity.