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Pritzker Opposes Johnson’s Head Tax as Chicago Budget Hearings Harden Resistance

The governor’s rebuke highlights doubts about a 2026 plan that swaps a property‑tax hike for a $1 billion TIF sweep with new targeted levies.

Overview

  • City Council opened weeks of budget hearings with members questioning the legality and fiscal soundness of new levies and a record $1 billion TIF sweep that would redirect money from neighborhood projects.
  • Mayor Brandon Johnson’s plan revives a $21-per-employee monthly charge on companies with 100 or more workers, projected to raise about $100 million and affect roughly 3% of businesses.
  • Gov. J.B. Pritzker told the Economic Club of Chicago he is “absolutely, four-square opposed” to the head tax, arguing it would deter hiring and make it harder to attract or retain companies.
  • Business groups and several aldermen criticized the proposal as a job killer and a reliance on one-time maneuvers, while the administration says proceeds would fund violence prevention, youth jobs and mental-health services.
  • The budget also seeks higher cloud-computing rates, a new social media tax, expanded rideshare fees and other targeted charges that may face legal challenges, with a final vote expected by year’s end.