Chicago’s progressive Democratic Mayor Brandon Johnson has sounded the alarm on the city’s dire financial state, warning that without massive tax hikes, its finances are “at the point of no return.” Speaking at a Tuesday press session, Johnson highlighted a looming $1.1 billion budget deficit for 2026, driven by dwindling revenue and rising costs. He pointed to underfunded systems like education, healthcare, housing, and transportation, exacerbated by a new state pension law adding $11 billion to Chicago’s long-term liabilities for police and firefighter retirement benefits.
Johnson, who has ruled out property tax increases after a unanimous city council rejection of a $300 million hike last year, is exploring “progressive” revenue options. These include reinstating a per-employee corporate head tax, a millionaire tax, and a novel social media advertising tax. Critics, including the Chicagoland Chamber of Commerce, argue these measures could stifle economic growth, with businesses like Citadel already slashing their Chicago workforce from 1,100 to 250 amid rising crime and taxes. The city’s population growth, driven solely by 96,000 migrants, masks a broader exodus of residents and businesses.
As Johnson prepares his October budget address, the stakes are high. His proposals face resistance from a city council wary of further taxing a struggling populace. With Illinois Democrats rejecting state aid for Chicago’s transit system, Johnson’s plea for the wealthy to “put more skin in the game” may spark a contentious debate over fairness versus economic viability.
