January 1, Chicago Mayor’s Tax Push Sparks Economic Alarm

Wyatt’s Take

• Mayor Johnson’s new taxes face tough pushback in Chicago.
• Business leaders warn the city could suffer job losses and higher bills.
• Even some legal experts say the proposals could spell trouble.

Mayor Brandon Johnson’s team is working hard to promote his budget plan, but critics fear his tax hikes could do real damage to Chicago’s economy. This week, the City Council did not vote on the budget after its finance committee shot down Johnson’s key revenue ideas.

Norma Rios Sierra from the Chicago Board of Education warned of layoffs if $1 billion in tax-increment financing isn’t sent to schools.

“If we do not get that TIF surplus, we’re going to be sending a lot of pink slips for Christmas, and we’re going to put it right back on you,” she told the council.

At the same time, a group called Black Voters Matter announced a big ad campaign to boost the mayor’s plan. They say they want to make sure regular people’s voices are heard in the budget fight.

But Alderman Brendan Reilly pushed back, arguing the mayor’s new head tax targets businesses and risks driving away jobs.

“I can tell you there’s no amount of money that’s going to convince us that a head tax is good for Chicago,” Reilly said.

He pointed to falling commercial property values and rising homeowner bills.

“If you want to accelerate our headfirst dive into an economic death spiral, pass this head tax. That is effectively what you are doing.”

A new tax on social media is also drawing concern.

Amy Bos from NetChoice says the $0.50 per user fee would hit families with more costs, maybe even causing some platforms to leave Chicago.

“Those platforms aren’t just going to eat that cost, right? As we’ve seen in other business operations, they’re going to pass that on,” Bos said.

She also raised privacy worries, since tech companies would have to track where users live.

Bos warned the Social Media Amusement Tax could break federal law and lead to expensive legal battles.

“We believe the issue is similar here. Chicago would be inviting similar costly litigation,” she said.

Other states backed away from similar taxes after court challenges, and Bos hopes Chicago will reconsider.

The mayor’s spending plan is worth $16.6 billion and adds more new taxes on things like cloud computing, sports bets, and boat mooring. Unless a deal is reached by Dec. 31, some city services could face interruptions and Chicago’s bond rating might take a hit.

Keep an eye on this battle over taxes and spending—regular folks and job creators stand to lose the most if City Hall doesn’t listen.

Wyatt Matters

Heartland families know that higher taxes and more government spending don’t fix what really matters. Jobs, take-home pay, and common sense are at stake.

Chicago’s choices now will echo far beyond the city limits.

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