Chicago mayor refuses to stop pushing $300M in tax hikes

Chicago Mayor Brandon Johnson wanted a $300 million property tax hike for his big budget. All 50 aldermen said “no.” So then he asked for $150 million and a 35% tax on liquor. Johnson fails to admit it’s not about taxes, it’s about making changes.

All 50 Chicago aldermen told Mayor Brandon Johnson he couldn’t have his $300 million property tax hike, so he asked for $150 million in property taxes, $128 million in cloud computing taxes, $10 million in streaming service taxes and $10.6 million from a 35% hike in liquor taxes.

Maybe Johnson should recognize “no” to $300 million in new taxes means “no” to $300 million in new taxes. Instead of asking for it a different way, he needs to stabilize Chicago’s finances by backing pension reform, cutting non-essential spending from his $17.3 billion budget and auditing departments for cuts. He needs to safeguard public safety and stop the financial games that deny Chicago long-lasting fiscal stability.

Johnson is unlikely to see his creative tax schemes pass. Ald. Brendan Reilly, Ward 42, told Crain’s, “Not only does the Johnson administration seem hell-bent on raising taxes, but they’ve shown very little to no interest in containing costs.” Ald. Lamont Robinson, Ward 4, told the Hyde Park Herald, “I want to make sure that we exhaust every opportunity that we have in order to not have a property tax increase.”

Similarly, Ald. Scott Waguespack, Ward 32, criticized the approach on ABC 7: “We can’t allow this mayor and his team to drive this city into the ground financially or by reputation, and that’s what’s happening right now.”

Of special concern is his 35% hike in liquor taxes. Business owners warn of severe consequences, including driving both businesses and customers out of the city, if the liquor tax passes. Declan Morgan, owner of the Irish Nobleman pub, told CBS, “We’re definitely looking at leaving the city, so Chicago is doing us no favors.” The city has already lost over 128,000 residents since 2015, leaving the population at its lowest since 1920.

While Mayor Brandon Johnson brushes off critics, urging them to “grow up” and accept his tax hikes, Chicagoans face soaring property taxes – up 145% in a decade – and the third-highest state and local sales taxes in the U.S.

By ignoring Chicago’s heavy tax burden and failing to deliver long-term solutions for financial stability, Johnson’s behavior prompted Standard & Poor’s to warn of a potential credit downgrade. This could increase borrowing costs, deter investments, hinder growth and spur more people to move away, weakening Chicago’s financial stability and ability to fund essential services.

Standard & Poor’s described the budget as a “critical juncture,” cautioning “failure to implement structural solutions to contain the deficit will only defer action on hard choices that are likely necessary to place the city’s finances on a sustainable footing.”

City Council members are stepping up on budget alternatives, with 14 signing a letter calling for spending cuts and urging Johnson to collaborate. Ald. Lamont Robinson,Ward 4, invited constituents to share their budget negotiation ideas at ward04@cityofchicago.org, stating, “It’s important for me [to not] go at this alone.”

Here are some alternative measures the city should consider to prepare a balanced budget in 2025:

• Advocating for pension reforms, potentially requiring a state constitutional amendment to control costs long-term. This includes reducing cost-of-living adjustments and implementing appropriate salary caps.
• Implementing cost-conscious budgeting and efficiency strategies, such as consolidating pension funds, finding stable pension funding and cutting spending on non-essential projects. The cuts should not hit public safety.
• Conducting departmental performance audits and reducing personnel costs by trimming non-essential positions in bloated departments.
• Avoiding one-time funding tactics, such as using COVID-19 relief and tax increment financing surpluses, which worsen future deficits.

A City Council meeting is scheduled for Dec. 2. Chicago residents will be watching closely to see how their representatives shape the city’s future through the 2025 budget.