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Quote/Term of the Week
Head tax / noun
A tax that imposes the same fixed amount on every individual in a class or group.
Ex: Mayor Brandon Johnson is again proposing a head tax on local corporations to help close a nearly $900 million funding gap in the 2027 city budget.
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The spookiest season of all us upon us: #ChiBudgetSZN🤑
Yes, it’s true, you read that correctly, yet another Chicago city budget season is here. Last week, Mayor Brandon Johnson introduced his 2027 budget proposal, what he’s calling “Chicago's Fair Share Budget.” Taking a look at what we know so far about Johnson’s plans for the 2027 fiscal year, we can’t help but feel some deja vu.
PAUSE: Let’s recap the end to last year’s dramatic #ChiBudgetSZN🤑
At the end of 2025, City Council had just passed a revenue plan featuring a myriad of controversial items, including an increased off-premise liquor tax, legalized video gambling and slot machines, and a small property tax increase to avoid cutting more jobs at the Chicago Public Library. The tax comes out to an additional $12 per year for the average homeowner. Days later, alders passed a full budget by a 30-18 vote, cementing the alternative plan that gained favor over the mayor’s proposals.
Johnson slammed the revenue plan for leaning on fines and debt collection targeting “everyday” and “poor and working Chicagoans.” One prong of the plan was to generate $89 million by selling off $1 billion of outstanding fees and fines from the city’s ambulances, utility bills, red-light cameras and more, according to WTTW. The mayor also repeatedly warned that the $16.6 billion budget has a $163 million deficit, which could lead to layoffs and other emergency cuts.
The mayor did not endorse or veto the alternative budget, allowing it to go into effect Jan. 1. Instead he signed two executive orders in an attempt to counteract the impact of the alternative budget on Chicagoans.
As we’ve covered at City Bureau, that debt sale never happened, either.
PLAY: What’s a notable similarity between Johnson’s budget priorities for 2026 and 2027?
Three words: corporate head tax. Ring a bell?
Last year, City Council was in shambles over Johnson’s controversial Community Safety surcharge, a.k.a. the “corporate head tax.” The proposed tax would have charged $21 per employee each month to companies with 100 or more full-time employees who work 50% of their time in Chicago.
Critics of the head tax said that it would drive away much-needed business from Chicago. Gov. J.B. Pritzker also spoke out against it. Supporters disagreed, saying the tax would help ensure corporations paid their fair share and provide funding for vital services. Chicago’s last head tax for businesses was phased out in 2014.
Well, critics beware, because it’s back. Under Johnson’s latest proposal, the head tax would charge companies with 125 or more full-time employees $25 per worker each month.
Companies whose employees work in parts of Chicago officially designated as Socioeconomically Disadvantaged Areas would qualify for credits to cover the cost of the tax for each employee in those areas.
During his introduction of his $17.6 billion budget, Johnson said the head tax would generate more than $100 million to help close the city's $882 million budget gap. He has routinely argued large corporations should contribute more.
That didn’t land last year and it’s not going to be an easy sell now, especially with mayoral and aldermanic elections coming up in February. Local business groups have already vowed to block any sort of head tax from being in the budget next year, too.
Important to note: there’s not much evidence that corporate head taxes have any effect on employment. As this debate raged last year, WBEZ analyzed economic data (which was reviewed by four experts) and found little proof that Chicago’s previous head tax caused us to lose jobs, nor that repealing that tax helped to generate more jobs.
Budget hearings are taking place now and are currently scheduled through Nov. 10. City Council must pass a budget by the end of the calendar year. If they don’t, we could enter a city government shutdown, which was a real possibility last year as Johnson threatened to veto the spending plan crafted by a coalition of alders.
What you can do:
What do you think the City Council should prioritize this budget season? Click here to find your ward and contact your alder.
Catch up on the headlines & history:
Budget Snapshot: 2027 City of Chicago Budget Proposal Overview | Better Government Association
Mayor Johnson budget seeks to reopen city mental health clinic next year | WBEZ
Chicago's head tax was long called a job killer, but is there evidence to back that up? | WBEZ
Got guides?
Your last chance to vote in the November general election and other local races is less than a week away. Here are the guides we’re using to get informed before we hit the polls on (or before) Nov. 3:
Illinois Midterm Elections Voter Guide — Chicago Public Media
The midterms can be confusing. This guide will walk you through what races are on your ballot from the U.S. senate, to IL governor and attorney general.
Check Your Judges: Cook County Judicial Elections – Injustice Watch
Judges are powerful officials whose choices on the bench touch many aspects of life, from traffic tickets to divorces, lawsuits, evictions, and criminal cases. That’s why Injustice Watch created this guide to Cook County’s judicial retention elections. Build your guide and take it with you to the polls.
Chicago School Board Voter Guide — Chalkbeat Chicago collaboration with 17 newsrooms
All 21 members of the Chicago Board of Education are up for election this fall. Chicago voters can cast a ballot for a school board president and a representative from their district. Find what district you live in and learn more about the candidates.
Voting in Bronzeville or Little Village? Swing by and say hello to Chicago Documenters and City Bureau staff who will be talking to folks about their experience voting in the Chicago Board of Education election.
You can find us from 8 a.m. to 8 p.m. at Lincoln Perry Sr Bldg (3245 S.Prairie Ave.) and Little Village Elementary (2620 S. Lawndale Ave.)
A version of this story was first published in the October 28, 2026 issue of the Newswire, an email newsletter that is your weekly guide to Chicago government, civic action and what we can do to make our city great. You can sign up for the weekly newsletter here.
Have thoughts on what you'd like to see in this feature? Email Civic Editor Dawn Rhodes at dawn@citybureau.org.