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California and Illinois Seek Tax Hikes Amid Budget Deficits

10/27/2025

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Summary

Story summary

The end of federal pandemic aid has left California and Illinois with budget deficits, prompting Democratic leaders to seek tax increases to avoid cuts.
In California, Governor Gavin Newsom (D-Calif.) targets billionaires to bolster state finances.
In Chicago, Mayor Brandon Johnson (City of Chicago) proposes a head tax on large corporations amid a $900 million shortfall projected by the Regional Transportation Authority for 2028.

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Story summary

The end of federal pandemic aid has left California and Illinois with budget deficits, prompting Democratic leaders to seek tax increases to avoid cuts.
In California, Governor Gavin Newsom (D-Calif.) targets billionaires to bolster state finances.
In Chicago, Mayor Brandon Johnson (City of Chicago) proposes a head tax on large corporations amid a $900 million shortfall projected by the Regional Transportation Authority for 2028.