Chicago Mayor Brandon Johnson is attempting to salvage his proposed $16.6 billion budget by offering concessions, but it's unclear if the changes will secure enough votes from the City Council.
As opposition from Governor JB Pritzker and business leaders continues to mount, Johnson has tweaked several components of his plan. He's now proposing a $21 per-month head tax only on businesses with 200 or more employees, rather than companies with at least 100 employees. This change would result in an $18 million revenue loss, but would be offset by raising the personal property lease tax on cloud computing and software to 15%, generating around $416 million.
Towing fees would also increase significantly, with vehicles under 8,000 pounds facing a new rate of $250, while heavy-duty vehicles would see a jump from $250 to $350. This revised fee schedule is expected to raise an additional $7 million annually.
Johnson has made several other concessions, including revising his proposed ride-sharing fee and exempting nonprofits from the boat mooring fee hike. However, he's still uncertain about securing enough votes for passage. The City Council would need at least 26 votes in support, a feat that seems increasingly unlikely.
Opposition to the head tax remains strong, particularly among African American alderpersons who have signed an opposition letter. Some key figures, such as Alderman Walter Burnett and Emma Mitts, are concerned about the impact on restaurants and small businesses. Burnett stated that he needs to find ways to "protect restaurants" from the negative effects of the head tax.
In contrast, Alderman Andre Vasquez is exploring alternative revenue streams, suggesting that restoring an automatic escalator locking mechanism for property taxes or doubling a garbage collection fee might be more viable options. Vasquez argued that these measures could provide stability and avoid disincentivizing hiring while generating necessary revenue.
As opposition from Governor JB Pritzker and business leaders continues to mount, Johnson has tweaked several components of his plan. He's now proposing a $21 per-month head tax only on businesses with 200 or more employees, rather than companies with at least 100 employees. This change would result in an $18 million revenue loss, but would be offset by raising the personal property lease tax on cloud computing and software to 15%, generating around $416 million.
Towing fees would also increase significantly, with vehicles under 8,000 pounds facing a new rate of $250, while heavy-duty vehicles would see a jump from $250 to $350. This revised fee schedule is expected to raise an additional $7 million annually.
Johnson has made several other concessions, including revising his proposed ride-sharing fee and exempting nonprofits from the boat mooring fee hike. However, he's still uncertain about securing enough votes for passage. The City Council would need at least 26 votes in support, a feat that seems increasingly unlikely.
Opposition to the head tax remains strong, particularly among African American alderpersons who have signed an opposition letter. Some key figures, such as Alderman Walter Burnett and Emma Mitts, are concerned about the impact on restaurants and small businesses. Burnett stated that he needs to find ways to "protect restaurants" from the negative effects of the head tax.
In contrast, Alderman Andre Vasquez is exploring alternative revenue streams, suggesting that restoring an automatic escalator locking mechanism for property taxes or doubling a garbage collection fee might be more viable options. Vasquez argued that these measures could provide stability and avoid disincentivizing hiring while generating necessary revenue.
. The Chicago Mayor's proposed budget is like, really complex, you know? He's trying to make some changes to appease the opposition, but it's hard to see if they'll actually work. I mean, increasing towing fees might be a decent way to rake in some cash 
, but it could also hurt small businesses or people who can't afford it 
.
. I think we should support them in finding alternative solutions that won't harm the community 
. Maybe restoring an automatic escalator locking mechanism or doubling garbage collection fees could be a good way to go 
.
. I hope the City Council can work together and find a solution that benefits everyone 
. Fingers crossed!
. But on the other hand, increasing cloud computing taxes is a genius move 
! Who knew we could get rich off people storing their files in the cloud 
. And towing fees going up? Ugh, that's just not right 
. I feel bad for heavy-duty trucks and whatnot... 
! Auto escalator locking mechanism or doubling garbage collection fees? Now those are some solid ideas 
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. If he's really worried about getting enough votes, maybe he should rethink the whole head tax idea 
. It's not like it's going to make a huge difference in the grand scheme of things. Increasing towing fees for smaller vehicles though, that might sting some people who aren't expecting it 
. And raising personal property lease taxes on cloud computing and software? That just screams "regulation" 
.
! The head tax is still a total joke, even if it's tweaked to only affect big businesses. I get that Chicago needs to make some money, but $21/month per employee? That's just gonna drive more companies outta here 
. That just sounds like more bureaucratic red tape to me.
Alderman Walter Burnett is right to be concerned about restaurants and small businesses getting hurt by this. But on the other hand, increasing towing fees could help raise some cash 
And I'm all for exploring alternative revenue streams, like Andre Vasquez suggested 
. Maybe instead of making concessions, they should be pushing for more innovative solutions that actually help the community 
so he's proposing a $21/month head tax on big companies but that still might not cut it 
and i feel him, cuz smaller places can't afford to lose more cash 
I think the head tax on businesses with 200+ employees is still gonna cause some major issues 
It's not going to be easy, but I'm rooting for the City Council to find a solution that doesn't hurt too many people 
.
... this head tax thing is just not sitting well with people. It's gonna be a tough sell on the City Council, especially with all those small businesses and restaurants in the mix 
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. We already have to deal with rent prices that are out of control, and now they're trying to squeeze more money from us? It's just not right. I think the city needs to find other ways to make money, like Alderman Vasquez is saying 
. I'm not saying the city should never raise revenue, but this seems like a bad idea to me 
... I hope some of those alderpersons on the council listen to their constituents and come up with something better 
. The head tax is still super contentious, but I think the city council is gonna have a tough time getting enough votes for it. It's weird how some of these alderpersons are pushing back hard on the head tax while others want to explore alternative revenue streams... maybe it's just about finding that sweet spot?