What happens to a city that spends hundreds of millions of dollars on illegal aliens? Inevitably, it will seek to squeeze ever more taxpayer revenue out of already beleaguered citizens and local businesses in any and every manner it can conceive. Such is the case in Chicago, where the math isn’t adding up for a defiant sanctuary city-embracing Democrat mayor and his budget-balancing schemes.
In October, the numbers were released on Mayor Brandon Johnson’s financial plans for the coming year, and they were astronomical. Johnson “unveiled his $16.6 billion budget for fiscal year 2026, covering a $1.15 billion deficit with massive tax hikes, temporary spending adjustments and one-time revenue fixes,” the conservative Illinois Policy Institute reported October 21.
‘Head-First Dive Into an Economic Death Spiral’
He's not off to a good start in reaching his benchmarks. Johnson “suffered a major budget setback [on Nov. 17], as the [City Council’s] Finance Committee voted down his revenue package that included a corporate head tax,” ABC-7 TV in the Windy City reported. “But, the mayor is standing his ground and refusing to back down from his taxing plan.”
Johnson’s proposal would present a severe burden to companies doing business in Chicago.
“The mayor’s head tax would impose a $21-per-worker monthly tax on businesses with 100 employees or more, although there have been discussions about some workers being exempted,” The Center Square reported Nov. 14. “A business with exactly 100 employees would have to pay $2,100 a month, or $25,200 annually. A business with 1,000 employees would pay $21,000 a month, or $252,000 a year, driving critics to say the head tax would be a jobs killer in the city.”
Johnson had gone to the mattresses in an all-out pressure campaign to get his controversial measure passed. “It’s clear here. We’re either going to cut services and lay people off and raise property taxes, or we’re going to make sure that those with means who can actually afford it put more skin in the game. That’s the choice that the people of Chicago have right now,” the mayor exclaimed in the days before the vote.
Aldermen were appalled. “And I can tell you this: If you want to accelerate our head-first dive into an economic death spiral, pass this head tax. That is effectively what you are doing,” 42nd Ward Ald. Brendan Reilly said as the measure was being debated.
That Johnson would use the specter of increased property taxes as a main alternative to generate the revenue his government desperately needs is certain to not go over well with a reeling citizenry.
“People gathered Saturday night for a ‘property tax bonfire’ at Harmony Community Church in Lawndale as they are trying to light the way to fairness,” ABC-7 reported Nov. 15. “Many homeowners in Chicago have received a hefty bill with the latest round of property tax increases, and they're wondering where exactly that money is going.”
“Tax increase is tied to a TIF [Tax Increment Financing] that I have no idea why,” Lawndale resident Thomas Worthy told the station. “It's collecting money from our neighbors and streets, but we're not being notified why it's in the bill.”
Where is all the money going, and why is so much more always needed? It is indeed a mystery, until one kicks over the giant rock in the mayor’s rabidly progressive garden.
“Chicago is approaching $300 million spent on the migrant crisis since the first bus arrived in 2022. Nearly two years later, more than 11,200 migrants are in the city shelters,” the Illinois Policy Institute reported in March 2024. “Chicago has spent $299 million on the migrant crisis since 2022, including $215 million since Chicago Mayor Brandon Johnson took office in May 2023.”
Draining Chicago Dry
Basic economic common sense should tell Chicago Democrats that this kind of price tag on sanctuary for foreigners unlawfully in the US is unsustainable. But that apparently isn’t going to stop them from shaking every last dollar out of citizens and businesses that they can in a futile attempt to make it work.
Hmmm, what else can we siphon to keep this runaway train on the tracks a little longer?
An IPI listing of Johnson’s budget proposal shows a determined effort to tap into all possible walks of life in Chicago:
“Increases the city’s cloud tax ($333 million). Chicago’s personal property lease transaction tax or ‘cloud tax’ would become the highest in the nation in 2026, increasing from 11% to 14%.”
“Rideshare tax hike ($65 million). Johnson’s plan for 2026 includes a tax increase on rideshare services by expanding the areas where Lyft and Uber riders must pay an additional congestion surcharge.”
“Creates social media amusement and responsibility tax ($31 million). The proposal introduces a new sin tax on social media companies dubbed the social media amusement and responsibility tax or SMART tax – a first of its kind nationwide.”
“Creates an online sports-betting tax ($26 million). Chicago would add a 10.25% tax to revenues for sports betting companies such as DraftKings and FanDuel.”
“Hemp tax ($10 million). The city will add a $2 tax on hemp products, such as delta-8 and THCA.”
“Yacht tax ($4 million). The boat mooring tax will triple from 7% to 23.25%.”
All this to continue rolling out the red carpet for non-citizens that the federal government is actively seeking to deport. It’s sheer madness, and the whole rotten edifice is bound to collapse at some point. In the meantime, another question is worth pondering. How long will Chicago residents allow themselves to be the proverbial pigeons being plucked to the bone in order to finance a clearly failing radical leftist social agenda?
