Mayor's Head Tax Plan Tweaked, But 2026 Budget Still Faces Uphill Battle Ahead Of Vote

Mayor Brandon Johnson's budget team has revised the proposed corporate head tax in a $16. 6 billion budget plan for 2026, with a vote expected next week. The tax, now set at $21 per person for companies with over 200 employees, aims to generate $82 million annually for community safety initiatives, down from an original estimate of $100 million. Progressive groups advocate for the tax as a necessary measure to fund public safety programs, while business leaders and some City Council members oppose it, labeling it a job killer. Alderman David Moore supports the head tax but is consulting with local business owners to understand its implications better.

Other council members, such as Bill Conway and Nicole Lee, express concerns that the tax could hinder job creation, urging the mayor to slow the process. They highlight real fears among business owners about potential layoffs and the impact on their operations. The budget team has also proposed increasing the city's personal property lease tax as part of the budget revisions. Johnson’s administration continues to push for a vote, emphasizing the need for funding to support community safety efforts.