* Fran Spielman repeatedly tried to pin down House Speaker Chris Welch on progressive revenue ideas for the spring legislative session. He batted them all away last Friday…
Spielman: Mayor Brandon Johnson has been beating the drum for progressive revenue like a billionaires tax, a statewide digital advertising tax an increase in the corporate income tax rate, a service tax to help the city and the public schools. But once again, there was all talk and no action, even though the public schools claim the state owes them one and a half billion dollars. Nothing has happened on these progressive revenue fronts for the mayor of Chicago. Why has Brandon Johnson been so ineffective in Springfield?
Welch: Well, let me say this, I think the mayor has getting a better footing here in Springfield. There’s been a lot more presence than at the start of his administration. A number of Aldermen in Chicago were here this week along with the mayor’s IGA team. Two weeks ago, when we were here for the first week of veto session, the mayor’s folks from the CPS were here. They’re here doing the things that you would expect the city to be doing, and they weren’t looking for something to be done in veto session. They were setting the stage and the groundwork for things that could come possibly in the spring session. I think that was the right approach.
Spielman: What are the prospects, though, Speaker? What might get done in the spring? Is there any hope for it?
Welch: Can we enjoy what we just got done this week? we got some big things done this week. We’re all going to look forward to the spring. And there’s a lot of things that we gotta do for the city of Chicago and the state of Illinois. And as I said to the group of aldermen that were here this week, Chicago is the economic engine of this state. We have to look to try to help Chicago be successful. Because when Chicago’s successful, Illinois is successful.
Spielman: Which of these ideas stands a chance? Does the statewide digital advertising tax or the service tax? Or might you just expand the city’s Home Rule powers and let them do it if they’re willing to jump first?
Welch: [Chuckles] I’m not going to speculate. I don’t know what stands a chance today. I’m going to enjoy what we just got done this week in Springfield, because we helped a lot of people on some affordability issues, and we’re going to try to continue that progress when we return in the spring. And I’m hoping that there are some things that we can get done that will help the city of Chicago, but not just the city of Chicago, the entire state.
Spielman: Do you like any of these ideas, the service tax, that’s been talked about for literally years and years and years. Nothing has gotten done. Do you like the idea of a digital sales tax on advertising? What ideas of his do you like?
Welch: Well, there’s a lot of ideas that the mayor has that I like. There’s a lot of ideas the mayor has that I don’t like.
Spielman [interrupting]: Which ones don’t you like?
Welch: What can get 60 votes in the House and 30 votes in the Senate and the Governor to sign is what’s important here in Springfield, and those ideas are going to be put to that test in the coming months. And hopefully we can do something that’ll help both Chicago and the state of Illinois.
Spielman: Should he drop his proposed online sports betting tax, which conflicts with what you’re trying to do in the state, right? And also his taxes on hemp? Should he drop those ideas to avoid conflicting with the state?
Welch: Oh, listen, similar to how a governor comes before us and gives a budget address, and that addresses a bunch of proposals, the mayor gave a budget speech. It was full of proposals. Now that stuff has to go through the process. I can’t say what should or shouldn’t be in there, because the process hasn’t started. I don’t want to say what he should drop or keep at this stage. The mayor gave a budget speech, as he’s required to do, and now we should put that budget speech through the process.
Spielman: But the governor is not waiting. He has declared his total opposition to the head tax, $21 a month per employee. Do you support that?
Welch: Chris Welch does not support a head tax. I don’t think that’s good policy for the city of Chicago.
Spielman: Why not?
Welch: We’re doing a good job, you know, attracting businesses to our state, and we’re being very mindful of things that could possibly drive business away. And I do think a head tax, and I agree with the governor on that one, is probably not one of the best ideas. But the mayor has a lot of good ideas as well, and you have to consider them all. And let’s be clear about that. He’s the mayor of Chicago. He’s got a tough job to do, and it’s his job to put things out there for us to to consider.
“Chris Welch does not support a head tax” effectively ended that line of inquiry. It was news.
Please pardon all transcription errors.
- City Zen - Monday, Nov 3, 25 @ 11:08 am:
Proponents of the head tax underestimate the negative perception associated with the tax. They like to focus on how small a cost it is to the employer and it won’t change corporate behaviors but the cost is secondary to the reputation. Once you wear the brand of taxing growth or simply hiring employees, employers at all levels - even the ones not impacted - get a negative perception of whether their wanted.
- Steve - Monday, Nov 3, 25 @ 11:18 am:
The head tax would be not easy to collect in 2025. How many firms downtown would list many employees in surrounding areas just to avoid the tax? A lawyer could be working in the Loop a majority of the time and be listed as a suburban employee.
- RNUG - Monday, Nov 3, 25 @ 11:24 am:
Chris Welch: right now I’m not going to go on record about any possible new taxes … except to oppose the head tax we know won’t fly. Maybe I’ll have a different opinion in the Spring …
- Annonin' - Monday, Nov 3, 25 @ 11:41 am:
The Speaker did a pretty good job with the questions. Might think about expressing the long sought goal of bipartisan support. Some a traditional “no” votes without offering their list of existing programs to repeal.
- The Farm Grad - Monday, Nov 3, 25 @ 3:44 pm:
Regarding the head tax.
Interesting to see Alderman Villegas opposing the head tax, after he co-sponsored a bill that supported it in 2017.
In any case, if they rule out progressive options like the head tax, are they going to override the Mayor’s veto and support a regressive garbage tax hike, which polls at 20%?
- City Zen - Monday, Nov 3, 25 @ 4:44 pm:
==a regressive garbage tax hike==
Much like CTA fares, Chicago’s garbage fees aren’t indexed to inflation, so they’re still charging Obama-era rates ona service that’s much more expensive now.
- The Farm Grad - Monday, Nov 3, 25 @ 5:04 pm:
“garbage fees aren’t indexed to inflation”
Regressive garbage taxes shouldn’t even exist. They are historically a component of property taxes.
But hey, if an alderman wants to support a regressive garbage tax hike that polls at 20%…..