Chicago City Wire

Cook County GOP Chairman Aaron Del Mar says Mayor Brandon Johnson’s newly unveiled tax proposals—including a corporate head tax, payroll excise tax and various fee increases—are "antibusiness," "reckless," and threaten Chicago’s "economic foundation."

“Major corporations like Boeing, Caterpillar, and Citadel didn’t just walk away—they fled a city crippled by decades of Democratic mismanagement and hostile, anti-business policies that Johnson is now doubling down on,” Del Mar told Chicago City Wire. “Since 2000, Chicago has lost over 200,000 manufacturing jobs, a direct consequence of tax hikes, overregulation, and political favoritism that stifle entrepreneurship and investment.” 

Johnson says the new taxes are needed to help close a projected $1.12 billion budget gap, including a $4 per employee head tax expected to raise $25 million annually, a payroll tax modeled after Seattle’s JumpStart, and higher fees on cloud services, rideshare apps and streaming.  

But critics have questioned the reliability of the data underpinning Johnson’s proposal and warned of potential legal battles, with business leaders arguing the tax measures would deter investment and mobility.

“If I’m a business and I’m more mobile or making a decision on whether to come to Chicago, I’m considering what’s going on the local level,” Jack Lavin, the president of the Chicagoland Chamber of Commerce, told the Chicago Tribune. 

Del Mar echoed those concerns. 

“Johnson’s insistence on hiking corporate taxes, maintaining an oversized and inefficient city government, and refusing to address the root causes of economic decline shows a stunning disregard for the reality businesses face,” he said.  

According to Illinois Policy, between 2018 and 2023, Illinois was the only state among its neighbors to drop in the Tax Foundation’s State Business Tax Climate rankings. Illinois fell seven places in the rankings while surrounding states either improved or maintained their positions, indicative of the declining business tax environment.    

The latest proposal is part of a series of tax increases pushed by Johnson, under whose administration the city is projected to spend $2.5 billion on assistance for illegal immigrants by the end of 2025. 

In 2024 Johnson proposed 11 tax and fee increases totaling $233.9 million, including hikes in property taxes, personal property lease taxes, amusement taxes and fees on bags, parking and rideshares as part of his $17.3 billion budget plan.

Johnson ultimately passed a $17.1 billion budget without the property tax hikes he sought, relying instead on taxes hikes and fees critics argue disproportionately impact lower-income residents. 

“Chicago is in economic freefall because of decades of Democratic corruption, waste, and incompetence—and Mayor Johnson’s administration is the latest symptom of this failure,” Del Mar said. “Democrats have run this city into the ground, driving businesses and families away with sky-high taxes, bloated government, and an unchecked rise in violent crime. Chicago’s homicide rate has skyrocketed by more than 40% in just three years, creating an unsafe environment that scares away both residents and investors.”

Del Mar insists Johnson's tax strategy—having previously dropped proposals for $300 million, $150 million, and $68.5 million property tax hikes after intense opposition—is terminally flawed. 

“If this agenda continues, the hemorrhaging of jobs and businesses will accelerate, devastating the city’s economy for years to come,” Del Mar said.  

Del Mar emphasized the disconnect between Chicago’s high tax rates and the persistent problems facing its residents. 

“Despite Chicago’s massive tax burden—more than $4,500 spent per resident annually—residents endure unsafe streets, crumbling infrastructure, and failing schools,” he said. “Johnson’s solution? Raise taxes again, doubling down on the failed tax-and-spend policies that have plagued the city for decades.” 

In contrast, he said the root cause of the city’s fiscal woes are clear. 

“The problem is not a lack of revenue; it is waste, inefficiency, and mismanagement under Democrat leadership,” he said. “Before demanding more from taxpayers, Johnson must clean house, cut wasteful spending, and foster economic growth that broadens the tax base sustainably. 

Otherwise, Chicago’s residents will continue paying more for less.

A poll released earlier this year revealed that nearly 80% of Chicagoans disapprove of Johnson’s performance, with only 6.6% expressing approval, resulting in a net favorability rating of -73.3%. Crime was the top concern for about two-thirds of respondents, followed by high taxes and inflation. 

“Johnson’s approval rating sits at an abysmal 30% or less, reflecting the public’s deep frustration with his failed agenda,” Del Mar said. “Rising crime, tax hikes, and unchecked government waste have Chicagoans demanding real change—not political experiments or ideology-driven policies.”  

Highlighting the urgent need for change, Del Mar is calling for a complete overhaul of city leadership. 

“Chicago needs leadership that understands how to grow the economy—not drive it into the ground,” he said. “We need safer streets, leaner government, and policies that attract opportunity. What Mayor Johnson is offering is a roadmap to economic ruin.”