Chicago alders reject mayor’s budget proposal, head tax in committee

Chicago alders reject mayor's controversial corporate head tax

The City Council’s Finance Committee on Monday rejected Mayor Brandon Johnson’s 2026 budget proposal, which included a controversial corporate head tax to help close a more than $1 billion projected deficit.

CHICAGO - The City Council’s Finance Committee on Monday rejected Mayor Brandon Johnson’s 2026 budget proposal, which included a controversial corporate head tax to help close a more than $1 billion projected deficit.

Johnson wanted the City Council to approve his budget plan this week, but many aldermen pushed back against his proposals for new taxes and instead advocated for more of a focus on cutting spending first.

What we know:

The members of the Finance Committee voted down the corporate head tax by a convincing 25-10 vote.

It was part of a vote on the mayor’s entire revenue package, which included, by Fox 32’s count, more than 20 different taxes and fees going up. But the 25 alders made clear on Monday that they reject any tax hikes without more spending reductions.

"Ask them if they support raising property taxes in Englewood and North Lawndale," Johnson said during a press conference. "Ask them if they support collecting a grocery tax. Ask them that. If you ask me, guess what I'm gonna tell you. I'm gonna tell you ‘no,' because I believe in being straight up with the City of Chicago. There are two options here: We challenge these big corporations and the ultra rich to put more skin in the game, or you ask people who are standing in line for bread, milk and food and clothing, ask them to put more skin in the game."

Debate over Chicago's budget after alders reject new taxes | The Chicago Report

We hear from two Chicago City council members after the Finance Committee soundly rejected Mayor Brandon Johnson's proposed tax increases, including a new corporate head tax.

The vote came after furious last-minute budget changes, arm-twisting, and backroom meetings to try and change votes. But at the end of the day, the head tax went down.

The debate over taxes and spending also comes as homeowners in Chicago and Cook County are opening their property tax bills. Residential homeowners on the South and West Sides are seeing historic increases in their bills, partly due to a decline in commercial property values in the Loop, which means everyone else has to make up the difference.

But Johnson said it’s further reason not to propose any city property tax increases in his budget. 

Several alders on Monday though said they do have ideas on how to handle the budget deficit.

"I want to make perfectly clear that this committee right here is willing and able to stand and work with the mayor to come up with a balanced budget," said Ald. Anthony Beale (9th Ward). "The notion that we are not bringing ideas to the forefront is a farce. We are willing and able anytime, anywhere we will meet to help pass a responsible, balanced budget. We just want cuts and efficiencies."

Because of the disagreement on the budget, the mayor is calling a pause in voting on his budget plan, at least until the beginning of December.

The City Council must approve a 2026 budget by the end of this year.