CHICAGO (WLS) — Mayor Brandon Johnson suffered a major budget setback Monday, as the Finance Committee voted down his revenue package that included a corporate head tax.
But, the mayor is standing his ground and refusing to back down from his taxing plan.
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Johnson is portraying the budget showdown as between those who support working people and those who support big corporations. The group of alders who led the charge against the revenue plan say they want to see more efficiencies.
The debate during the Finance Committee meeting got heated.
“And I can tell you this: If you want to accelerate our head-first dive into a economic death spiral, pass this head tax. That is effectively what you are doing,” 42nd Ward Ald. Brendan Reilly said.
“And the question is, are we going to serve the residents of the city? Are we going to serve folks downtown? It’s just that. It’s just that simple. Are you helping Google out? Are we going to help grandma?” Budget Committee Chairman Ald. Jason Ervin said.
At the heart of the debate is the corporate head tax: $21 a month per employee for companies with over 100 workers.
Opponents say it will hurt business and increase downtown vacancies, driving down property values, shifting the tax burden to homeowners who just got socked with huge tax hikes.
The Finance Committee voted down the mayor’s revenue proposal 25-10, sending a message that there’s more work to be done.
“The message is so strong, so clear and pretty transparent from the taxpayers. They want us to go back and find those efficiencies, find the cuts and not continue to stick them with new taxes,” 32nd Ward Ald. Scott Wauguespack said.
But Johnson is firing back.
“There are two options here: We challenge these big corporations and the ultra-rich to put more skin in the game. Or you ask people who are getting in line for bread, milk and food and clothing, ask them to put more skin in the game,” Johnson said.
The mayor said he’d veto any budget that includes a grocery tax, or a hike in garbage fees.
He won’t support a property tax either. And when pressed on the head tax question, he said it’s staying.
“Hold on a second, what’s a non-answer? The corporate tax is in this budget; it will stay in this budget. Is that clear enough?” Johnson said.
“This is a campaign budget that’s going to be focused on taxing the billionaires and people paying their fair share. This is all politics,” 36th Ward Ald. Gilbert Villegas said.
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