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* Bloomberg…
Illinois Governor JB Pritzker assailed a plan by Chicago Mayor Brandon Johnson to bring back a tax on large corporate payrolls, saying the proposed levy would repel major employers.
“I am absolutely, four-square opposed to a head tax for the city of Chicago,” Pritzker said Tuesday at the Economic Club of Chicago. “It penalizes the very thing that we want, which is we want more employment.”
The governor’s opposition adds to the pressure on Johnson as the mayor tries to close next year’s $1.19 billion budget deficit with new or higher taxes on big corporations, tech companies and wealthy residents. Johnson’s so-called head tax, which would levy $21 per employee per month on companies with at least 100 workers, is designed to raise $100 million for community-safety programs.
Pritzker called on Johnson to cut costs as a way to balance the city’s budget. The governor himself ordered state agencies to identify ways to put 4% of their budgets into reserves, limit spending and prioritize only essential hires as he braces for the economic fallout from President Donald Trump’s policies.
* Tribune…
“It penalizes the very thing that we want, which is we want more employment in the city of Chicago, and it makes it very hard to attract companies from outside of Chicago to come into Chicago and harder for companies that are in Chicago to stay,” [Pritzker] said.
Pritzker said Johnson and the City Council should focus instead on fostering economic growth and finding “efficiencies,” a byword for budget cuts.
“I haven’t seen any of that in this budget so far,” Pritzker said. “I think that’s going to have to happen because there are going to be changes people are not going to like, certain kinds of revenue enhancements that he’s got in his budget.”
* Crain’s…
Pritzker also said he’s hopeful state lawmakers will pass legislation to shore up the finances of public transit districts in the Chicago area and elsewhere in the state. Legislators got some breathing room on the so-called fiscal cliff created by the end of pandemic-era federal subsidies facing Metra, the Chicago Transit Authority and Pace.
The Regional Transportation Authority, which oversees the finances of the three systems, said the shortfall next year is expected to be $230 million, rather than the $771 million previously predicted — and updated from a more recent $202 million gap — leading some to question whether legislators will punt the thorny issue to the next regular session in the spring.
“I think we’re going to have to make it happen soon. I’m asking the Legislature they do it during the veto session,” the governor said. […]
“The transportation systems themselves need to find efficiencies,” Pritzker added. “We need reform in the way that it’s governed, and that is going to be part of a bill. I want a world-class transportation and transit system for the city of Chicago. We can’t thrive without it.
A major challenge for the city’s budget this year revolves around a bill, HB 3657, that Pritzker signed into law earlier this year. The legislation was designed to ensure that Chicago firefighters and police officers receive pension benefits at the same level as first responders in the rest of the state.
The legislation, which critics have called a “pension sweetener,” is expected to cost the city more than $11 billion.
Pritzker refused to accept blame, saying that the bipartisan legislation which received a veto-proof majority was debated openly for months, and that the state heard “not a peep” from the city in opposition. He also stood by the premise of the bill.
“These are people I think all of us believe deserve to be paid what they’ve been promised,” Pritzker said. “They do an unbelievably hard job, and they deserve it. It was not a sweetener. It was something that they were owed.”
* Daily Herald…
Pritzker noted the Bears are a successful franchise valued at $9 billion. “Building a couple billion-dollar stadium for them, promising that they won’t pay any property taxes, we shouldn’t do that. That’s not good for the taxpayers,” he said.
“When companies come to the state of Illinois … and they want help to grow, or build something new and big — we help. We help them with infrastructure, we help them in a lot of different ways,” Pritzker said.
“What I’m not for — is that we’re responsible for building your factory. Or we’re responsible for building your new headquarters. We’re not. We can help you. We’ll build roads. We’ll help you with incentives.”
And, “taxpayers should not be left on the hook” for millions in debt from 2003 Soldier Field renovations, Pritzker said.
Thoughts?
* More…
* NBC Chicago | Pritzker strongly opposes corporate head tax, key part of Johnson’s budget plan: Johnson’s proposal to reinstate the head tax, which former Mayor Rahm Emanuel got rid of in 2014, appeared to be on life support the day the mayor first proposed it. The governor’s opposition certainly won’t help. Johnson said his budget proposal avoids having to increase taxes for “working people” and instead would charge the “ultra-rich.” However, Pritzker sees it as antithetical to his economic goals for the city. “(The tax) penalizes the very thing that we want, which is we want more employment in the city of Chicago. And it makes it very hard to attract companies from outside of Chicago to come in to Chicago and harder for companies that are in Chicago to stay,” Pritzker said.
* ABC Chicago | Gov. Pritzker says he opposes Mayor Johnson’s proposed Chicago corporate head tax: Former commerce secretary Bill Daley said he was surprised to hear Pritzker’s direct opinion. Mayor Johnson championed the head tax as a way to raise $100 million for anti-violence programs and youth summer jobs. Business groups are hoping the mayor heeds the governor’s concerns.
posted by Isabel Miller
Wednesday, Oct 22, 25 @ 9:05 am
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The Governor just did the equivalent of telling your wife that her outfit looks ugly. Something can both be true, and not your place to say.
Comment by Garfield Ridge Guy Wednesday, Oct 22, 25 @ 9:11 am
It’s easy for JB to be an armchair quarterback : he doesn’t have to vote on the Chicago budget . Where is the money supposed to come from? They don’t want to cut spending. They don’t want to find “efficiencies” . Finding efficiencies could be in conflict with union contracts. Bills have to be paid. There’s no call for pension reforms. Anyway, other major cities have city income taxes. Who’s asking JB if he was support and allow Chicago to have one? NYC, Baltimore, Newark, Portland and many others have one. Sure, it might hurt Chicago somewhat but that’s the way the cookie crumbles.
Comment by Steve Wednesday, Oct 22, 25 @ 9:17 am
This is pure payback for Brandon Johnson and his allies’ constant verbal shots at the state. Had there not been all that chatter about the state “owing” Chicago billions, JB would have answered that question about the head tax with a diplomatic sidestep.
I’m not sure Brandon could have muscled it through the City Council under any circumstances, but JB’s opposition gives cover to any on-the-fence aldermen to vote no. It’s effectively dead.
Comment by Telly Wednesday, Oct 22, 25 @ 9:27 am
What is wrong with the MBJ administration that they continue to propose revenue streams without meeting with necessary stakeholders first?
Comment by Original Rambler Wednesday, Oct 22, 25 @ 9:29 am
JB has an amazing ability to speak out of both sides of his mouth.
Tax increases are bad for Chicago and stifle job growth and the expansion of our economy but great for the state of Illinois
Comment by Kenny Steele Wednesday, Oct 22, 25 @ 9:39 am
—They don’t want to cut spending—
Who is “they”? The city counsel? The voters? Have they been given a choice?
Comment by lake county democrat Wednesday, Oct 22, 25 @ 9:40 am
The corporate head tax was part of Chicago’s home rule authority. Gov. Pritzker’s opinion, which I mostly agree with, is just persuasive. The City does not need Springfield’s approval to institute the tax if 26 City Council members vote for it.
Comment by Three Dimensional Checkers Wednesday, Oct 22, 25 @ 9:44 am
Please read the Task force’s budget reccomendation.
https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf
Page 59. The repealed tax was at $4 a head. In today’s dollars, that is around $5.50. The reccomendation was for the city to investigate whether repealing the head tax resulted in an increase in business registrations. $21 is a short sighted attempt at fixing this city’s financial crisis. This type of tax, tax, tax, democrat makes me embarrassed to be a liberal
Comment by localgovhero Wednesday, Oct 22, 25 @ 9:47 am
=Something can both be true, and not your place to say.=
He’s a city and state resident as well as the governor. How can it not be his place to say this? I would expect any governor to speak out if they thought a city was acting in a way that’s not in the state’s best interest.
Comment by Pundent Wednesday, Oct 22, 25 @ 10:05 am
“taxpayers should not be left on the hook” for millions in debt from 2003 Soldier Field renovations.
This seems like the very basic, fundamental element of government involvement in McCaskeyVille. Some might also insist they make some $$$ attonement for destruction of horseracing
but we are a small slice of the population.
Whatever part of the McCaskey brain trust thought it was smart to roll out the $9+ billion valuation while this little waltz was on-going should be sent away quickly.
Comment by Annonin' Wednesday, Oct 22, 25 @ 10:55 am
==JB has an amazing ability to speak out of both sides of his mouth.==
He was talking about this specific tax. Some of you are funny. You gripe about taxes in the state and then you gripe when he opposes a tax. You all can’t be satisfied.
Comment by Demoralized Wednesday, Oct 22, 25 @ 11:02 am
== they won’t pay any property taxes ==
I hate to find myself defending the Bears, because they’ve been so pathetic on this, but their proposal does not call for them to pay zero property taxes. Substantially reduced property taxes? Yes. But not zero. And just as the state routinely provides infrastructure support to new corporate projects, as the Gov points out, the state also routinely provides tax relief — usually related to payroll taxes.
This might be nitpicking, but the Gov should probably use more precise language because he’s indicated he wants to apply the same property tax breaks to mega projects other than the Bears stadium. I don’t think he’s going to like opponents of that saying that the governor wants big corporations to pay zero property taxes.
Comment by TNR Wednesday, Oct 22, 25 @ 11:13 am
== “Building a couple billion-dollar stadium for them, promising that they won’t pay any property taxes, we shouldn’t do that. That’s not good for the taxpayers,” he said. ==
Is anyone lobbying for the Bears to pay zero property taxes? Or are they just negotiating how much they are going to pay over the next X years?
I’m very surprised at “won’t pay any property taxes”
Comment by Stosh Wednesday, Oct 22, 25 @ 11:17 am
Please tell us how the Bears destroyed the horse racing industry in Illinois and how they should atone for that.
Arlington Park closed in 2021 and the Bears bought it in 2023.
I loved JB’s message to business leaders. Time to practice what you preach.
Real GDP growth in Illinois from 2018-2023 was only .98%
The average in the US was 2.39%
Comment by Kenny Steele Wednesday, Oct 22, 25 @ 11:22 am
==promising that they won’t pay any property taxes==
This is the same Bears organization that paid $200 million for a racetrack, then successfully argued that the property is only worth $125 million.
Comment by Jocko Wednesday, Oct 22, 25 @ 11:43 am
=== but their proposal does not call for them to pay zero property taxes.===
The program is literally called Payment In Lieu Of Taxes
Comment by Rich Miller Wednesday, Oct 22, 25 @ 11:51 am
==JB has an amazing ability to speak out of both sides of his mouth.==
One wonders how many employees Hyatt has in Chicago.
Comment by Stosh Wednesday, Oct 22, 25 @ 12:11 pm
Thank you Rich, was going to say the exact same thing.
The bill would exempt them from paying property taxes (which under the Illinois constitution, is questionable to begin with based on the plain language of Article IX Section 6).
They are agreeing to make payments to the government, but it would be specifically instead of them paying a property tax.
Comment by Juice Wednesday, Oct 22, 25 @ 12:11 pm
== The program is literally called Payment In Lieu Of Taxes ==
Perhaps their proposal has changed or my understanding of it is off, but the original PILOT language called for the assessed value of the former Arlington Park property to be frozen (not eliminated) at its current level for 40 years, which means it would be taxed like it’s a big empty lot even after it’s improved with a stadium and all the other surrounding development. In exchange for that break, the Bears would have to make a payment to the local property taxing bodies in lieu of what the normal property tax payment would be.
Comment by TNR Wednesday, Oct 22, 25 @ 12:21 pm