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Mayor Brandon Johnson pitches revised corporate head tax for new budget
Chicago Mayor Brandon Johnson delivered a defense of his 2026 budget proposal on Tuesday amid opposition from several City Council members.
CHICAGO - With three weeks remaining to resolve a $1.1 billion budget shortfall, Mayor Brandon Johnson on Tuesday offered a revised version of his proposed corporate head tax, despite continued pushback from business groups and several City Council members.
By the numbers:
Johnson’s updated "community safety surcharge" would apply solely to 175 of Chicago’s largest companies with more than 500 employees, increasing the monthly charge to $33 per worker.
The original proposal targeted businesses with more than 100 employees and included a $21-per-month fee. The mayor argued that corporations such as JPMorgan, Accenture and Walmart can more than afford it, pointing to their profits and recent federal tax cuts.
The mayor's office said the tax would apply to large corporations like JP Morgan Chase, Walmart and Accenture. They also used Bank of America as a case study to illustrate how the tax would affect such a large company.
Bank of America made more than $27 billion in net profit in 2024, according to the mayor's office, with another $4 billion projected to be saved via tax cuts passed as a part of Trump's One Big Beautiful Bill earlier this year. Chicago's corporate head tax would take about 0.0008% of Bank of America's overall revenue, Johnson's office claimed.
What they're saying:
"Don't misunderstand me, we are certainly proud of Chicago and Chicago being home to many of these world-renowned powerhouse companies, but $30 a month is not going to change their bottom line," Johnson said. "When you look at the combined tax rates of major cities, accounting for all the relevant direct and indirect taxes, you can see that Chicago has one of the lowest corporate tax rates of any major city in the country."
The other side:
Opponents, including some aldermen and business leaders, have criticized the plan as a job killer that could push companies out of the city.
Some council members suggested alternatives, such as doubling garbage collection fees, but Johnson rejected that idea, saying it would disproportionately burden working families.
Johnson warned that if the budget is not approved by month’s end, a government shutdown could lead to mass layoffs and furloughs.
FOX 32 has reached out to City Council members for comment.
The Source: The information in this report came from Chicago Mayor Brandon Johnson and previous FOX 32 news coverage.