Chicago City Council Votes Down Corporate Head Tax Proposal, Mayor Johnson Now Faces Uncertain Future
A majority of 50 Chicago City Council members, including key allies of Mayor Brandon Johnson, have declared their opposition to his proposed $21-a-month-per-employee corporate head tax. The move comes as a significant setback for the mayor's ambitious plan to challenge the ultra-rich and corporations to "pay their fair share."
The letter, signed by 27 council members, expresses concerns that reinstating the head tax would discourage hiring, push employers outside city limits, and make Chicago less competitive. It also criticizes the mayor's reliance on borrowing to fund expenses, particularly firefighter back pay.
Finance Committee Chair Pat Dowell (3rd) and Rules Chair Michelle Harris (8th), Transportation Chair Greg Mitchell (7th), Black Caucus Chair Stephanie Coleman (16th), and Aviation Committee Chair Matt O'Shea (19th) are among those who signed the letter. New Alderman Walter R. Burnett (27th), recently appointed by Johnson, initially expressed support but later asked to have his name removed.
Business lobbyists claim that Pedestrian and Traffic Safety Committee Chair Daniel La Spata (1st) was on board with the proposal but later admitted he never actually signed the letter. La Spata expressed concerns about the tax's structure but stated he hadn't made up his mind.
The Chicagoland Chamber of Commerce, a key backer of Johnson's plan, has denounced the head tax as a "job killer." Governor JB Pritzker also criticized the proposal, which is similar to one he vetoed in 2014 during Rahm Emanuel's tenure.
Mayor Mendoza challenged the council members who signed the letter to explain whether they would still support the $100 million annual fund earmarked for community programs. The move highlights Johnson's struggle to build consensus on his progressive tax package and raises concerns about the mayor's ability to implement his agenda.
				
			A majority of 50 Chicago City Council members, including key allies of Mayor Brandon Johnson, have declared their opposition to his proposed $21-a-month-per-employee corporate head tax. The move comes as a significant setback for the mayor's ambitious plan to challenge the ultra-rich and corporations to "pay their fair share."
The letter, signed by 27 council members, expresses concerns that reinstating the head tax would discourage hiring, push employers outside city limits, and make Chicago less competitive. It also criticizes the mayor's reliance on borrowing to fund expenses, particularly firefighter back pay.
Finance Committee Chair Pat Dowell (3rd) and Rules Chair Michelle Harris (8th), Transportation Chair Greg Mitchell (7th), Black Caucus Chair Stephanie Coleman (16th), and Aviation Committee Chair Matt O'Shea (19th) are among those who signed the letter. New Alderman Walter R. Burnett (27th), recently appointed by Johnson, initially expressed support but later asked to have his name removed.
Business lobbyists claim that Pedestrian and Traffic Safety Committee Chair Daniel La Spata (1st) was on board with the proposal but later admitted he never actually signed the letter. La Spata expressed concerns about the tax's structure but stated he hadn't made up his mind.
The Chicagoland Chamber of Commerce, a key backer of Johnson's plan, has denounced the head tax as a "job killer." Governor JB Pritzker also criticized the proposal, which is similar to one he vetoed in 2014 during Rahm Emanuel's tenure.
Mayor Mendoza challenged the council members who signed the letter to explain whether they would still support the $100 million annual fund earmarked for community programs. The move highlights Johnson's struggle to build consensus on his progressive tax package and raises concerns about the mayor's ability to implement his agenda.