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Johnson Presses Pre-Thanksgiving Budget Vote as Finance Chair Rejects Head Tax

The push follows revisions that narrow the head tax to larger firms, including a higher cloud-computing levy.

Overview

  • Finance Chair Pat Dowell said a Monday vote is premature and declared she opposes a head tax at any level, leaving the 26 votes needed in doubt.
  • Johnson did not introduce his revised revenue ordinance at Friday’s meeting and plans weekend negotiations, with a possible Finance Committee debut Monday and a goal of final passage before Thanksgiving.
  • Concessions include applying the $21-per-employee monthly tax only to companies with 200 or more workers, lifting the cloud-computing lease tax to 15% (about $416 million projected), raising towing fees, keeping a $1.13 flat rideshare fee, restoring library collections funding, fully funding gender-violence services, and increasing the pension advance to $130 million.
  • Gov. J.B. Pritzker reiterated opposition to taxing jobs, aligning with business groups and several aldermen who argue the head tax could deter hiring.
  • If the package falters, officials and aldermen point to fallback options such as a larger property tax levy referenced in a budget director’s letter and roughly $1.3 billion in borrowing for infrastructure that could steer funds to ward projects.