Chicago’s financial stability is under intense scrutiny as the Washington Post editorial board warned that the city has “lost its mind” fiscally under Mayor Brandon Johnson, highlighting budget gimmicks and risky tax hikes that could cripple economic growth. Critics say persistent pandemic-era spending, growing operating budgets, and controversial tax proposals threaten Chicago’s long-term economic future and competitiveness. The warning signals deep concern about leadership decisions and the direction of the city’s finances.
The Washington Post editorial board criticized Chicago’s reliance on short-term financial maneuvers dating back years and said the current administration has continued that trend. Between 2019 and 2025, the city’s net operating budget grew by almost 40 percent, fueled in large part by temporary federal pandemic funds that are no longer available. With those funds expiring, ongoing programs and city personnel commitments remain, placing strain on the budget.
Mayor Johnson has proposed a series of tax and revenue measures as part of efforts to close a $1.15 billion budget gap, including increased taxes on the lease of personal property like equipment and software, and reinstating a controversial “head tax” on employers. Critics argue these moves will make it more expensive to do business in Chicago, potentially driving jobs and investment out of the city.
Local opposition to Johnson’s financial strategy has grown. Aldermen have pushed back against his head tax plan, with several city council members calling it a “nonstarter” that could worsen unemployment and trigger a government shutdown if a budget is not agreed upon by year’s end.
The fiscal challenges go beyond tax proposals. Chicago faces structural budget issues, including underfunded pensions and long-term liabilities, prompting credit rating agencies to downgrade the city’s outlook. Opponents of the mayor’s approach say that without clear, sustainable fiscal planning, Chicago risks long-term economic stagnation.
Business leaders have also voiced strong concerns. Many argue that additional taxes on employers could discourage corporate investment and job creation in a city already struggling with population loss and economic headwinds. These critics claim that punitive tax policies won’t address core budget problems but will instead undermine growth.
Meanwhile, some city officials defend the mayor’s proposals, saying tough choices are necessary to maintain essential services and avoid layoffs. Johnson’s office argues that without revenue enhancements, budget cuts could impact public safety, infrastructure, and other city services residents depend on.
The debate over Chicago’s finances under Johnson reflects broader national tensions between progressive fiscal policies and free-market economic principles. Conservative observers warn that heavy taxation and expansive government spending risk hurting American cities long-term, especially when private sector growth is discouraged.
