Summary
The Mayor of Chicago, Brandon Johnson, wants to bring back a corporate tax that the city stopped using over ten years ago. This move aims to address a predicted $1.15 billion budget shortfall but has met with opposition from local businesses and Illinois Governor J.B. Pritzker. The tax is expected to generate $100 million a year that will fund programs to reduce violence and support youth employment.
Key Facts
- Chicago faces a projected $1.15 billion budget deficit for the 2026 fiscal year.
- Mayor Brandon Johnson proposes reintroducing a corporate tax initially dropped in 2014.
- The tax would require companies with 100 or more employees in the city to pay $21 per employee each month.
- Only about 3% of businesses in Chicago would be affected by this tax.
- The tax is estimated to bring in $100 million annually for violence prevention and youth employment programs.
- Chicago's biggest revenue source is property taxes, but the mayor will not increase these.
- The mayor's spending plan includes taxes on big tech companies and social media firms, among others.
- Illinois Governor J.B. Pritzker opposes the proposed tax, arguing it could harm job growth.
