Chicago finance committee rejects Johnson’s head tax proposal

CHICAGO (Nov. 17, 2025) – The Chicago City Council’s Committee on Finance voted today to reject Mayor Brandon Johnson’s proposal to re-implement a head tax on Chicago businesses with over 100 employees, despite heavy pressure from the mayor and the Chicago Teachers Union.

This tax proposal comes after Chicago homeowners were just shown the largest property tax increase in 30 years, according to the Cook County Treasurer’s Office. Dramatic declines in commercial property values in the Loop forced homeowners to shoulder a larger share of the property tax burden.

Statement from Austin Berg, executive director of the Chicago Policy Center at the Illinois Policy Institute: 

“The committee made the right decision by rejecting Mayor Johnson’s head tax proposal. There is no environment in which this tax is a good idea for the city.

“Chicago businesses are still reeling from the pandemic and office vacancy is at a record high. The city can’t afford to make it even harder to hire or do business in the city. But that’s exactly what charging businesses a fee for each job they create would do – and it would be disastrous for Chicagoans who want to work here.

“Gov. J.B. Pritzker, Illinois House Speaker Emanuel ‘Chris’ Welch and other Illinois leaders have explicitly condemned this proposal. We are relieved that the committee agreed.

“This was the right call for working Chicagoans. The next step is for the City Council to reject this tax outright and pursue the only reforms that will actually strengthen Chicago’s finances: spending restraint, structural efficiencies and a government that lives within its means.”

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.