Johnson budget spends and taxes more
[October 22, 2026]
By Jim Talamonti | The Center Square
(The Center Square) – Chicago Mayor Brandon Johnson’s 2027 budget
proposal includes a new package tax, a new tax on large employers and
several tax increases.
Johnson introduced his $17.6 billion spending plan on Wednesday, up from
$16.7 billion this year.
The mayor said his budget ensures that every Chicagoan receives their
fair share of the city’s investments, services and opportunities.
“Funded by responsible spending cuts that protect essential services and
by asking the wealthy and the largest corporations in this city to pay
their fair share,” Johnson said.
The budget includes a 15-cent tax on non-medical and non-food containers
and packages, plus a $25 per employee monthly tax on large businesses
outside of socioeconomically disadvantaged areas.
The mayor’s office said the Equitable Employer Tax would bring in an
estimated $113.8 million. The tax would fall on companies with 125
full-time employees or more. Johnson's budget says that it impact 3% of
the city's registered businesses.
Last month, a group of 29 Chicago aldermen advised the mayor they would
work on a budget that includes no head tax or tax on employers.
“If we can show the public that we're being good fiscal stewards and
looking at what the right size of government should be, creating
technology efficiencies and then looking at revenue last, I think that's
a better narrative versus what this mayor is proposing,” Alderman
Gilbert Villegas told The Center Square.
Aldermen rejected Johnson’s head tax proposal last year and passed an
alternative budget, which the mayor allowed to take effect without his
signature or veto.
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Chicago Mayor Brandon Johnson speaks during a news conference in
Springfield. Photo: Greg Bishop / The Center Square
Johnson’s new budget raises the Personal Property Lease Transaction
tax from 15% to 20% and the sports wagering tax from 10.25% to 20%.
The PPLT tax hike is projected to raise an additional $234 million
and the betting tax hike is expected to bring in an extra $37
million.
Illinois Hotel & Lodging CEO Michael Jacobson said Johnson’s
proposed head tax, PPLT increase and liquor tax increase would add
to rising cost burdens for hotels and businesses.
“City leaders must reject these proposals and pursue a budget that
supports local businesses,” Jacobson said in a statement.
The spending plan calls for using $42.9 million in tax increment
financing surplus and $37.7 million in catalyst fund revenue.
The mayor touted a $30.9 million subsidy to Chicago Public Libraries
and prioritized funding for community violence intervention.
“We are making a historic $40.6 million investment in CVI,
activating 390 street outreach workers and 800 peacekeepers,”
Johnson said.
The mayor also called for the permanent establishment of the
Department of Community Wellness and Safety.
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