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* Sun-Times…
Mayor Brandon Johnson Thursday delivered on his promise to “challenge the ultra-rich” and make corporations pay their fair share, proposing a $16.6 billion budget for 2026 that includes $586.6 million in progressive tax and fee revenues and a record $1 billion tax increment-financing surplus to rescue the city and Chicago Public Schools.
The tax-heavy budget, which aims to erase a $1.15 billion shortfall, would hit Chicago businesses hard. It includes a revived and dramatically expanded employee head tax, a second consecutive increase in the tax on cloud computing, a first-of-its-kind social media tax and a broadening of the city’s amusement tax to include online sports betting.
In his budget address to the City Council, Johnson said Chicago is the 10th wealthiest city in the world, with 127,000 millionaires and 24 billionaires — while 1 in 4 Chicagoans under the age of 18 are mired in poverty.
“Our budget proposal asks large corporations and the ultra-wealthy to chip in more so that working families are not burdened with higher property taxes, or grocery taxes or garbage fees,” Johnson said. “This intense and growing wealth inequity is not sustainable for our city.”
Click here to read the mayor’s budget outline, which includes some cost reductions and program expansions.
* IRMA…
Illinois Retail Merchants Association Statement on Mayor Johnson’s Proposed 2026 Budget
CHICAGO – The Illinois Retail Merchants Association (IRMA) released the following statement regarding Mayor Brandon Johnson’s 2026 budget proposal:
“For several years now, Chicago retailers have faced smash-and-grab robberies and organized theft rings that have forced shop owners to lock up merchandise, reduce store hours, or close their doors entirely. Rather than supporting retailers, the City has responded with higher taxes, added regulations, and onerous licensing requirements. The mayor’s budget plan does nothing to reverse these trends and will instead lead to more empty storefronts in neighborhoods across Chicago, including shuttered restaurants, grocery stores, and pharmacies,” said Rob Karr, president and CEO, Illinois Retail Merchants Association. “Taxing job creators won’t drive economic growth or improve public safety. What we need are real, immediate solutions—not budget gimmicks or political blame games.”
* Illinois Manufacturers’ Association…
The Illinois Manufacturers’ Association (IMA) today released the following statement regarding Mayor Brandon Johnson’s 2026 budget proposal:
“Under the Mayor’s budget proposal, manufacturers would be punished for creating jobs in Chicago. Instead of fostering economic development, which is key to addressing the city’s underlying financial problems, he is giving businesses yet another reason to take their investments elsewhere,” said Mark Denzler, President & CEO of the Illinois Manufacturers’ Association. “It’s time for this administration to get serious about solving problems, supporting growth, and creating opportunities for families throughout Chicago.”
* Illinois Chamber…
Illinois Chamber of Commerce Statement on the City of Chicago FY26 Budget Address
The Illinois Chamber of Commerce represents more than 3,000 member companies across the state, including hundreds of employers that are proud to call Chicago home. On behalf of these businesses and the thousands of employees and families they support, we must express our deep concern and disappointment with several challenging provisions contained in Mayor Brandon Johnson’s proposed FY26 budget.
At a time of economic uncertainty, a stagnant labor force, and rising costs of doing business, this budget sends the wrong signal about the future of our great city. Proposals to revive an outdated and harmful head tax, presented as a tool for “community safety”, along with yet another increase to the cloud tax, and the creation of incredibly flawed social media tax place Chicago at a competitive disadvantage nationally. At a time Chicago seeks to establish itself as a global hub for quantum computing and technological innovation, policies that penalize job creators in rapidly growing sectors are shortsighted and risk damaging the city’s economic vitality.
The Illinois Chamber urges the City Council to reject this proposal and instead work in partnership with the business community to pursue solutions that foster growth, attract investment, and strengthen every Chicago neighborhood. We stand ready to collaborate with the Administration and Council members on pragmatic reforms, identifying efficiencies, applying reasonable cost controls, and advancing pro-growth policies that support both residents and employers across Chicago.
* Civic Federation…
Statement from The Civic Federation on Mayor Brandon Johnson’s Budget Proposal
CHICAGO — Today, The Civic Federation released the following statement:
“The proposed FY2026 budget repeats past mistakes and fails to provide progress toward sustainable, structural solutions to the City’s immense fiscal challenges. Especially disappointing is that the proposed budget does not meaningfully engage or incorporate the recommendations of the Chicago Financial Future Task Force, relying on revenue increases over structural cuts and savings. As proposed, this budget limits prospects for future growth and leaves unaddressed the even larger deficit the City itself projects for 2027, all but ensuring that the City will likely be in a worse position next year. We see this as the start of a longer process that must involve deeper engagement by the City Council. We look forward to working with the Council and the Mayor’s Office to achieve a stronger, more sustainable plan that will support Chicago today and going forward.”
* CTU…
Chicago Teachers Union Applauds Mayor Brandon Johnson’s “Protect Chicago” Budget, Historic Investment in Public Schools
CHICAGO— Chicago Teachers Union President Stacy Davis Gates issued the following statement following Mayor Brandon Johnson’s 2026 budget address:
Today, Mayor Brandon Johnson delivered the most transformative budget to come out of City Hall in generations. He is protecting our city from Trump’s cuts and proposing a budget that fights for working people instead of against them.
The record half a billion dollars proposed for Chicago Public Schools helps the majority of aldermen who lobbied CPS with a promise of a TIF surplus actually keep that promise. It goes above and beyond what our district was counting on. While we fight for the $1.6 billion the state owes, the City is stabilizing funding, protecting Black Student Success from Trump, and securing the retirement of the workers whose MEABF pensions have been treated as a political football.
Our union will be pushing every city councilmember to vote ‘yes’ on the Protect Chicago budget and then moving on to Springfield to demand Governor Pritzker and the IL General Assembly do their part.
Our mayor inherited generations of divestment – including school and mental health clinic closures in Black and brown communities – and is rebuilding broken systems while federal dollars are being withheld. He is showing us, to maintain vital services without burdening already overburdened working families, we must tax the wealthiest corporations and individuals – the entities that have profited from Trump’s tax breaks for billionaires.
Neither Chicago nor Illinois needs austerity or cuts; we need political leadership willing to stand up to Trump by delivering on the promise that brought generations here in search of freedom and opportunity: good jobs, safe communities, and fully funded schools. Today, we are one step closer.
Discuss.
…Adding… Illinois Hotel & Lodging Association…
CHICAGO – The Illinois Hotel & Lodging Association issued the following statement in response to Mayor Brandon Johnson’s proposed 2026 budget.
“While we appreciate that Mayor Johnson did not propose raising Chicago’s already high property and hotel taxes, we are disappointed that his proposed 2026 budget includes implementing a job-killing head tax. Businesses, especially hotels, continue to face a host of challenges caused by rising costs and ongoing economic uncertainty. This additional tax will only make it harder for them to grow, create jobs, invest in their employees and remain competitive. Rather than continuing to add to the existing burden, the city should prioritize policies that will allow long-term growth, create new opportunities for our workforce, and drive investment across the city. The hospitality industry stands ready to collaborate on creative ways to increase revenue and keep Chicago a world-class destination and a place where businesses and workers alike can thrive,” said Michael Jacobson, President and CEO of the Illinois Hotel & Lodging Association.
* Chicagoland Chamber…
CHICAGO – The Chicagoland Chamber of Commerce issued the following statement in response to Mayor Brandon Johnson’s proposed 2026 budget:
“Mayor Johnson’s proposed 2026 budget relies on placing a tariff on jobs in Chicago and implementing policies that will further inflationary burdens on Chicago businesses and residents. If we want to be serious about fixing Chicago’s fiscal challenges, we need to focus on long-term strategies to grow and create jobs, not quick fixes and job-killing taxes like the head tax and cloud tax that hurt businesses of all sizes and sectors. The 2026 budget proposal includes about $200 million in cost reductions, when the budget has increased by more than $6 billion in recent years. Rather than embracing shared sacrifice, this budget seeks to tax and borrow its way out of a deficit and, in the process, disincentivize job creation and hiring, deter relocation and expansion, and make Chicago less attractive at a time when national and global competition for jobs and investment is at an all-time high.
“The best way to address our fiscal challenges and strengthen essential city services is through growth. We stand ready to work with the mayor and members City Council to find serious solutions that will attract and support new employers, expand growing industries, and strengthen our tax base through opportunity and investment in every neighborhood,” said Jack Lavin, President and CEO of Chicagoland Chamber of Commerce.
* Chicago Federation of Labor…
(Chicago, Ill.) – Today, Chicago Federation of Labor President Bob Reiter issued the following statement on Mayor Brandon Johnson’s 2026 budget address:
“Chicago needs a responsible budget with realistic revenue that protects the workers and services city residents rely on every day. Chicagoans recognize how dedicated city workers pick up trash, fill potholes, and help keep residents safe and healthy, even as the city’s workforce has shrunk over the past decade. They already do more with less.
“We are glad that the mayor’s budget proposal appears to avoid new layoffs beyond those previously announced. But we are concerned that shorting the advanced pension payment and filling long-term operational shortfalls with one-time maneuvers does not address the structural problems that put us in this $1.2 billion hole to begin with. These tactics impede public infrastructure projects across the city while continuing to kick the can down the road.
“This proposal will be the first draft of many. The CFL is ready to partner with those interested in exploring pragmatic revenue options, identifying operational efficiencies, and ultimately passing a budget that protects the high level of service Chicagoans expect and deserve.”
* Institute for Public Good…
“We applaud Mayor Johnson’s 2026 budget released today as it represents a major shift in how the city solves its budget problems. For decades, the city has relied on regressive taxation on working class Chicagoans, privatization, and cuts in city employment and services – and in this moment when the infrastructure working families rely on is being attacked by Trump, we need leadership that is willing to fight back. This budget turns the page on those decisions of the past and decades of corporate welfare. It taxes large corporations that will receive almost a trillion dollars in tax breaks from Trump’s tax policies over the next decade, and asks a portion of them – less than 3% of Chicago businesses – to give just a drop of those tax breaks back to the city. Mayor Johnson has opened the door to progressive revenue in this city, and we need to continue to push those largest corporations to increase their contribution to the city services we all rely on that make Chicago the cultural, economic, and talent hub that it is.
We are also heartened to see that this city is taking serious the responsibility to ensure we have consistent funding within the Department of Public Health. While Donald Trump has slashed federal funding for CDPH, we need to find every available pathway to protect our public health services – it’s the highest ROI we can have on every dollar that goes into the budget.
The choice is clear: To further Trump’s agenda to take money from working families and give it to corporations or to ask corporations to pay their fair share in order to invest in our people and our neighborhoods. This budget has made a clear choice, and we hope that City Council does the same.”
posted by Rich Miller
Thursday, Oct 16, 25 @ 12:21 pm
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The administration has 6 loyal reactionaries sitting atop the federal judiciary. They know they don’t really need to obey district courts.
We’ve blown past a lot of prior restraints in a very short time so I understand people aren’t ready to grapple with the on the ground reality yet, but I have to agree with JS Mill. I no longer see any meaningful law at all, just the exercise of power with occasional temporary hindrances thrown up and quickly blown past by the people with actual power.
Comment by Larry Bowa Jr. Thursday, Oct 16, 25 @ 12:40 pm
It was an o.k. speech, although the audience in chambers was filled with clapping seals. The reality of this budget give me so much dread. $1 billion in TIF surplus, and he still needs to utilize a bunch of taxes that are not likely to pass City Council and are pretty harmful. What is so progressive about the corporate head tax and cloud computing tax anyway? There are lots of companies that would be impacted that aren’t the big businesses you think of. The Chief Financial Officer cannot even say publicly who much interest we are going to pay on debt to cover new CBA and settlements. That number must be super high, and it is very condescending to the public to not say, on top of years of condescending behavior from this administration. Just leave if you are going to put such little effort into running the City.
Comment by Three Dimensional Checkers Thursday, Oct 16, 25 @ 12:50 pm
I am utterly shocked that the CTU is supporting the Mayor’s budget. I thought they would want more /S
Comment by DuPage Saint Thursday, Oct 16, 25 @ 12:53 pm
Will Chicago’s pension funds be divesting from all those large corporations receiving massive tax cuts? Wouldn’t want to send mixed signals now.
Comment by City Zen Thursday, Oct 16, 25 @ 12:57 pm
If Chicago isn’t going to cut spending and control costs: tax hikes are inevitable. Will it affect job growth? Stay tuned. A head tax really is a tax on employing someone. IMA and Illinois Chamber really don’t have a seat at the table. It’s nice to publish a reaction but you aren’t CTU/ DSA.
Comment by Steve Thursday, Oct 16, 25 @ 1:15 pm
=interest we are going to pay on debt to cover new CBA and settlements.=
Borrowing to make payroll is a very very bad budget practice. Malpractice even.
Johnson and ctu will look anywhere but in the mirror for blame and to fix their problems that they created.
Comment by JS Mill Thursday, Oct 16, 25 @ 1:19 pm
Another budgeting failure. The City needs to be raising property taxes each year to get on steady long term financial footing. Only Rahm was willing to do the hard thing. He deserves more credit for that. Our last two mayors tho…. fiscal failures.
Comment by Ducky Thursday, Oct 16, 25 @ 1:22 pm
=The City needs to be raising property taxes each year to get on steady long term financial footing.=
The city needs to raise taxes. Those could be property taxes, corporate taxes, both, and or others. Any tax increase carries pros, cons, and risks. We’ll see how the city council views this attempt at increasing revenue. My hunch is that it fairs about the same as the attempted property tax increase. We’ll see.
Comment by Pundent Thursday, Oct 16, 25 @ 1:35 pm
==Only Rahm was willing to do the hard thing. He deserves more credit for that. Our last two mayors tho…. fiscal failures.==
Lori Lightfoot instituted the automatic escalator for property taxes. . . . which BJ in all his wisdom decided to remove.
Comment by ElTacoBandito Thursday, Oct 16, 25 @ 2:00 pm
Magic beans to balance the city budget.
Comment by RNUG Thursday, Oct 16, 25 @ 3:19 pm
Same old soak the rich who have not left
Comment by Hank sauer Thursday, Oct 16, 25 @ 3:42 pm
History going to repeat itself re the head tax. Why do we never learn from history.
MBJ should just bump every tax and fee the city has by a minimal percent to get the balanced budget and run with that. No winners, no big losers, and everyone feels the pinch equally.
Comment by Original Rambler Thursday, Oct 16, 25 @ 3:45 pm
No one has done more to reelect Donald Trump, than Brandon Johnson. A job tax? are we sure Trump isn’t funding his candidacy?
Comment by Merica Thursday, Oct 16, 25 @ 4:13 pm
Of Course CTU is supportive- it is likely the budget proposal was crafted by Mayor Gates’ staffers
Comment by Sue Thursday, Oct 16, 25 @ 4:30 pm
Of what relevance does Institute for Public Good hold in this conversation? It’s a handful of people from various failed CTU campaigns.
Comment by City Zen Thursday, Oct 16, 25 @ 4:37 pm
I love this budget. It doesnt raise taxes or fees on any regressive measure it simply asks the rich to pay up. Lets call their bluff for once and see what happens. All around chicago other cities are putting the grocery tax back in. Our garbage fee remains the lowest in the country.
The Mayor should respond to this asking a yes or no question to each group speaking out. “Would you prefer we raise property taces on everyone, as well as a grocery tax on the middle class and poor, and raise the garbage fee on the middle class and poor, rather than ask billionaires to pay a bit more?” Only accept a yes or no answer.
Massachusettes added a wealth tax and everyone said the wealthy would flee, instead, they raised even more than projected.
The rich will not leave en masse because it turns out they love to live in high QOL areas too and love places with large profits, aka large urban wealthy cities.
Im also happy to get rid of TIF handouts to the rich as well as that money is rightfully owed to city agencies instead.
Great budget!
Comment by Brandon Thursday, Oct 16, 25 @ 4:38 pm
-Im also happy to get rid of TIF handouts to the rich as well-
This statement puzzles me. TIF money across the city are used for various public good projects. Every Ward has at least 1 TIF district and the downtown TIFs were already raided/allocated for projects, so not sure what is even meant by this comment. Or maybe I’m missing the sarcasm…
Comment by LastModDemStanding Thursday, Oct 16, 25 @ 4:47 pm
—-I love this budget. It doesnt raise taxes or fees on any regressive measure it simply asks the rich to pay up. —-
Lol. Good to know taxing jobs is not something that impacts the poor or middle class in the CTU-wonderland that is Chicago.
Comment by Ducky Thursday, Oct 16, 25 @ 4:58 pm
Ducky,
Is this like how a wealth tax would scare all the wealthy away and they would pack up and leave immediately? Because when it actually was put into practice in Massachusettes, that lie was debunked. Weird, when we had a head tax years ago, Chicago still had the 2nd most fortune 400 companies in the country just as we do now. How is that possible?
Comment by Brandon Thursday, Oct 16, 25 @ 5:00 pm
Lastmodemstanding,
It isnt sarcasm in the slightest. TIFs are tax payer money held away from the city agency budgets. I would rather use them to stabalize things than wait on some future subsidy to a private developer. You know, socialism foe the rich? No thanks. Our money to fix our issues first.
Comment by Brandon Thursday, Oct 16, 25 @ 5:02 pm
===How is that possible? ===
Because big companies didn’t care as much back then as small to mid-size companies do today?
Comment by Rich Miller Thursday, Oct 16, 25 @ 5:04 pm
…And, by the way, your general attitude is one reason why the majority of Illinoisans voted against the progressive income tax. Too many of y’all just assume that all business owners are filthy rich.
Comment by Rich Miller Thursday, Oct 16, 25 @ 5:08 pm
Also, maybe read the CFL’s statement posted above: “But we are concerned that shorting the advanced pension payment and filling long-term operational shortfalls with one-time maneuvers does not address the structural problems that put us in this $1.2 billion hole to begin with. These tactics impede public infrastructure projects across the city while continuing to kick the can down the road.”
Comment by Rich Miller Thursday, Oct 16, 25 @ 5:08 pm
why did they pay all that money to EY if they were just going to ignore all the recommendations?
Comment by cube Thursday, Oct 16, 25 @ 5:46 pm
The next 10 weeks at City Hall are going to be so much fun.
Comment by ChicagoBars Thursday, Oct 16, 25 @ 6:35 pm
None of the tax the rich fans can read financial news-Both Chicago and Illinois vastly lag the growth of nearly every other state and especially our neighbors- imposing costs on employers reduces employment- for all of JB’s BS-truth is we are losing jobs- anyone read Wags statement yesterday? The City- and especially CPS need to cut costs to live within current revenues- enough with one time injections- we did that with Covid $$-at least the Governor is facing reality seeking across the board 4 percent cost reductions
Comment by Sue Thursday, Oct 16, 25 @ 6:55 pm