Chicago bag tax could jump again under alternative city budget plan

CHICAGO - We are two weeks away from the City of Chicago’s budget deadline, and a group of alders has proposed an alternative plan to close the $1.1 billion gap. Their proposal includes eliminating some fees while raising taxes on others.

One of those potential increases could affect everyone at the grocery store.

What we know:

A higher bag tax is on the table. The fee started at 7 cents and increased to 10 cents this year. Next year, it could rise to 15 cents.

The tax has generated tens of millions of dollars for the city’s budget since it was implemented in 2017.

Supporters say the measure is meant to cut down on waste and encourage people to use reusable bags. Opponents argue it is merely a revenue generator disguised as an environmental effort.

At Devon Market, some customers continue to opt for plastic bags, while others bring their own. Many have been following the budget debate closely to see how it could affect their daily expenses.

"I'm retired, I'm on a limited income, it's hard. My refrigerator is bare as it is, it makes no sense," said Brenda Asiedu, a Rogers Park resident. 

"My opinion is they're going to tax us on something no matter what. It's either gas, food or a nickel on the plastic bags. We're getting used to it. People bring their own bags. I guess it's the lesser of two evils," said Tom McDermott, another Rogers Park resident. 

What's next:

Alders backing the plan say it helps avoid a corporate head tax, which they argue would be a job killer.

Supporters of Mayor Brandon Johnson have previously said a bag tax is regressive and shifts the burden of balancing the city’s budget onto low- and middle-income Chicagoans.