Chicago mayor vows to avert government shutdown as budget talks hit stalemate.
In a latest attempt to break the impasse, Mayor Brandon Johnson is open to revising his corporate head tax proposal in exchange for avoiding an unprecedented city government shutdown. The current budget stalemate has prompted concerns that Chicago may become the first major US city to go without funds, with potentially disastrous consequences for its citizens and businesses.
Johnson, who described a shutdown as "benefiting nobody," said he is willing to negotiate details of his rejected proposal in hopes of finding common ground with the City Council. The revised tax would increase from $21 to $33 per employee and target companies with 500 or more employees, raising an estimated $82 million annually.
The situation echoes a notorious power struggle between Mayor Harold Washington's administration and a group of mostly white aldermen in 1984, known as the "Vrdolyak 29." Johnson warned that history could repeat itself if the city council doesn't approve a budget by year-end.
Critics argue that raising taxes and fees for garbage collection, off-premise liquor sales, and ride-sharing services will disproportionately affect working-class residents. Former Finance Committee Chair Scott Waguespack accused Johnson of using "finger-pointing" to discredit those who oppose his proposal.
In an attempt to pressure dissenting aldermen, Johnson called their bluff by suggesting they vote on doubling garbage fees in specific neighborhoods. However, he still defends the corporate head tax, citing support from Chicago residents and its potential benefits for workers.
Historical context suggests that a corporate head tax can be beneficial, pointing to its introduction in 1973 under then-Mayor Richard J. Daley, which was later phased out but not attributed to job-killing.
In a latest attempt to break the impasse, Mayor Brandon Johnson is open to revising his corporate head tax proposal in exchange for avoiding an unprecedented city government shutdown. The current budget stalemate has prompted concerns that Chicago may become the first major US city to go without funds, with potentially disastrous consequences for its citizens and businesses.
Johnson, who described a shutdown as "benefiting nobody," said he is willing to negotiate details of his rejected proposal in hopes of finding common ground with the City Council. The revised tax would increase from $21 to $33 per employee and target companies with 500 or more employees, raising an estimated $82 million annually.
The situation echoes a notorious power struggle between Mayor Harold Washington's administration and a group of mostly white aldermen in 1984, known as the "Vrdolyak 29." Johnson warned that history could repeat itself if the city council doesn't approve a budget by year-end.
Critics argue that raising taxes and fees for garbage collection, off-premise liquor sales, and ride-sharing services will disproportionately affect working-class residents. Former Finance Committee Chair Scott Waguespack accused Johnson of using "finger-pointing" to discredit those who oppose his proposal.
In an attempt to pressure dissenting aldermen, Johnson called their bluff by suggesting they vote on doubling garbage fees in specific neighborhoods. However, he still defends the corporate head tax, citing support from Chicago residents and its potential benefits for workers.
Historical context suggests that a corporate head tax can be beneficial, pointing to its introduction in 1973 under then-Mayor Richard J. Daley, which was later phased out but not attributed to job-killing.