Progressive Chicago mayor advocates for new 1% grocery tax to help billion-dollar deficit

Chicago Mayor Brandon Johnson called for a 1% taxation connected groceries connected Tuesday retired of concerns astir the city's monolithic deficit.

Johnson's fund squad met with the Committee connected Finance: Subcommittee connected Revenue to sermon the impending extremity to Illinois’ market tax, which volition expire connected January 1, 2026. The metropolis presently has until October 1 to walk a caller taxation to regenerate the expired 1 to support gross continuity.

During the meeting, Budget Director Annette Guzman argued successful favour of the caller tax, informing that the metropolis could spot an summation successful its shortage and services chopped without it.

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Chicago Mayor Brandon Johnson argued that the market taxation volition regenerate a authorities taxation acceptable to expire adjacent year. (REUTERS/Lucy Nicholson)

"Allowing that taxation to lapse successful 2026 would outgo the firm money an estimated $80 cardinal adjacent twelvemonth alone, further exacerbating our $1 billion-plus gap," Guzman said. "Nearly 200 different municipalities successful Illinois — from Berwyn to Wheaton and beyond — person already voted to widen this market tax... If we neglect to bash the same, we volition permission captious services connected the chopping block."

She pointed to the city's constabulary section arsenic a imaginable unfortunate of fund cuts if taxes similar this were not passed.

"Roughly one-third of our firm money supports the constabulary section and its related pension obligations. Without caller revenue, staffing, grooming and community-based programs could look cuts," Guzman said.

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The metropolis has until Oct. 1 to present a caller market tax. (Jamie Kelter Davis/Bloomberg via Getty Images)

In a press briefing, Johnson advocated for the 1% summation by pointing retired that the caller taxation would lone regenerate the 1 presently successful effect without adding further taxes.

"The City of Chicago volition not enact its ain market tax. The market taxation already exists. There is simply a process successful which the postulation of the market taxation is present being placed successful the work of municipalities," Johnson said connected Tuesday. "We’re not creating a market tax. We’re conscionable creating a process by which we tin cod it."

The metropolis assembly has not yet voted connected a replacement tax. Alderman Andre Vasquez pointed retired during the gathering that a section taxation was not included successful Johnson’s 2025 budget, which present puts the assembly successful an awkward position.

Chicago Budget Director Annette Guzman warned the city's shortage could pb to cuts successful services, including instrumentality enforcement.  (Mitchell Layton/Getty Images)

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"Had it been included successful the budget, it mightiness person gotten done successful a mode that’s going to consciousness a batch easier than this year," Vasquez said. "Hearing that 200 municipalities that already did it — it’s a spot frustrating. It was a missed opportunity."

Fox News Digital reached retired to members of the committee for further remark but did not instantly person a response.

Though the metropolis assembly tin walk a caller taxation summation aft the October deadline, the City Council Office of Financial Analysis reported successful May that collections connected immoderate caller ordinances would not spell into effect until mid-2026.