Story perspectives

Johnson Proposes $17.6B Budget, Faces Head-Tax Fight

By Drooid · Oct 22, 2026, 3:40 PM UTC · How we work

Summary

Story summary

Mayor Brandon Johnson proposes a $17.6 billion budget to eliminate an $882 million deficit.
The plan adds a $25-per-employee monthly head tax on firms with over 125 workers, projected to raise $101 million.
A bloc of 29 aldermen opposes the head tax, urging efficiency measures first.
A $0.15 per-package tax on non-food, non-medical packaging is expected to generate $9 million.
City Council must approve the budget by Dec 31 or face a municipal shutdown.

History

Historical Context

In 2015 Rahm Emanuel’s $1.5 billion head-tax plan failed after business opposition, including the Illinois Chamber of Commerce, echoing earlier state attempts such as the 2011 temporary income-tax hike and the 2020 Fair Tax amendment, both meeting strong opposition. Brandon Johnson’s 2023 budget now pairs a modest $25-per-employee levy with efficiency demands to avoid a similar backlash.

1 of 2

Story summary

Mayor Brandon Johnson proposes a $17.6 billion budget to eliminate an $882 million deficit.
The plan adds a $25-per-employee monthly head tax on firms with over 125 workers, projected to raise $101 million.
A bloc of 29 aldermen opposes the head tax, urging efficiency measures first.
A $0.15 per-package tax on non-food, non-medical packaging is expected to generate $9 million.
City Council must approve the budget by Dec 31 or face a municipal shutdown.

1 / 2