C
hicago Mayor Brandon Johnson has walked back his proposal for a $300 million property tax increase, claiming it was never a serious plan. Instead, he said the idea was meant to spark discussion and attention to the city's $982 million budget deficit. Johnson hopes to address this shortfall through a combination of measures, including increasing garbage collection fees, hiking other taxes, and using federal pandemic relief funds.

    The mayor abandoned his tax hike proposal after it became clear that aldermen would vote against it. Now, alternatives are being considered, such as doubling the city's $9.50 monthly garbage collection fee to generate an additional $68.5 million annually. Another option is increasing the personal property lease tax from 9% to match Chicago's sales tax rate of 10.25%, which could bring in nearly $96 million annually.

    Alderman Anthony Beale criticized Johnson's pivot, calling it a "retreat" and demanding further cost-cutting measures. However, Alderman Maria Hadden expressed "cautious optimism" about the direction of budget talks, praising both aldermen and the mayor's staff for proposing viable alternatives. Johnson aims to avoid workforce reductions, prioritizing a balanced budget that protects essential investments and avoids regressive taxes.