The 2026 budget crisis has reached “a point of no return,” according to Chicago Mayor Brandon Johnson.
Severe underfunding of pensions and excessive government spending has led to this crisis. The city is facing a $1.1 billion budget deficit for 2026. That number will grow given the pension legislation signed by Gov JB Pritzker that increases retirement benefits for Chicago police and firefighters.
Mayor Brandon Johnson is considering, among other things, a corporate payroll expense tax, a head tax, grocery tax and even a congestion tax on cars coming into downtown to close the deficit. How much more can Pharaoh tax businesses and the people without driving the city into financial ruin?
These are bad ideas and would discourage employers from hiring people and harm jobs. A previous mayor called the head tax a “job killer that puts Chicago at a disadvantage.” In this time of economic uncertainty, we need more jobs, not fewer. The mayor should be cutting costs, reforming pensions and renegotiating union contracts.
A tax on businesses is a tax on consumers. Businesses pass the cost to customers by raising prices. A prime example is President Donald Trump’s tariffs. The new tariffs implemented by the Trump administration will drive costs up.
Prices rose 2.6% in June, up from an annual pace of 2.4% in May, the U.S. Department of Commerce reported last month. The consumer price index also went up in June. It is also expected that prices on food and drinks will climb due to the tariffs.
Johnson has failed to control overtime spending. The Chicago Police Department exceeded its personnel budget by $127 million in 2024 even though it has 1,000 vacancies.
Additionally, the mayor needs to get more people into the workforce. Three communities on the West Side have Great Depression levels of unemployment. According to the July 2025 Chicago Metropolitan Agency for Planning community data snapshots, North Lawndale unemployment was 13.9% in 2023 and 46.1% were not in the labor force. Austin had a 14.4% unemployment rate and 41.6% of people were not in the labor force. In West Garfield Park, the unemployment rate was 22.5% and 45.6% were not in the labor force. These communities underscore what is wrong with Chicago. The national unemployment rate is 4.2%.
Johnson should not rely on budgetary gimmicks to balance the budget. Casino revenue is not consistent — it is a volatile source. Red-light and speed camera traffic enforcement tools have had a disproportionate impact on Black and Latino communities. Several studies have revealed that households in majority-Black and Latino ZIP codes receive tickets from red-light and speed cameras at a rate roughly twice that of households in white areas. Regressive revenue penalizes hardworking citizens. Why would citizens vote for someone who burdens them with regressive taxes and prioritizes labor unions and migrants over them?
The mayor has been doing the bidding for his labor union buddies while costs are being borne by taxpayers. We need to create opportunities for people who are not a part of the union. Johnson should represent all the citizens of Chicago.
The following are suggestions to address the impending budget crisis:
- Mayor Johnson should demand labor union leaders offer concessions to keep the city moving forward. Johnson should ask union leaders to defer pay increases and renegotiate contract terms. Also, the mayor should consider furlough days if terms cannot be renegotiated. Personnel costs account for the largest budget item.
- Johnson, aldermen, the city treasurer and other government leaders should donate their pay raises back to the city and create a fund to help our struggling senior citizens.
- Johnson and aldermen should find operational efficiencies within government for the taxpayers. Examine every department and cut out duplication and waste.
- Johnson and Pritzker should fix the pension crisis in Chicago. The pension obligations are costing $2.9 billion this year and account for 17% of the total Chicago budget.
- Pritzker, Johnson, Illinois House Speaker Emanuel “Chris” Welch and Senate President Don Harmon should address the unemployment crisis on the South and West sides of Chicago. Citizens living on the South and West sides should be given priority through procurement contracts to maintain the fleet of CPD vehicles, Fire Department trucks and CTA buses. They should be trained how to fix police cars, fire trucks and CTA buses. The residents should be trained on how to remove lead service lines from Chicago homes. Those lead service lines are causing lead poisoning in children and families.
- Johnson should provide contract opportunities for residents of Chicago Housing Authority to do landscaping and other jobs to maintain their buildings.
- All contracts should be competitively bid so as to seek competition and cost reductions.
We must get individuals in communities working. More people with W-2’s increases tax revenue to the city and stabilizes families.
The city of Chicago has spent $638.7 million on migrant aid since August 2022, Fox 32 reports. These are resources that were spent because of the city’s sanctuary status. The people of Chicago deserve to have a say on how their tax dollars are spent.
The mayor and his administration should be looking at ways to lower taxes and regulations on businesses and residents. This will lead to increased business receipts, jobs, and bring us back from the point of no return.
I write this commentary to make those comfortable with raising taxes on businesses and residents uncomfortable.
Willie Wilson is a business owner, philanthropist and former mayoral candidate.
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