Chicago Mayor Brandon Johnson revealed his 2026 budget plan Thursday and in it was a mention of a social media-based tax.
But what exactly is that and what would it mean if the budget is passed?
The tax is not specifically on social media users, but rather on large social media companies like Meta, which owns Facebook and Instagram. Other companies like YouTube and TikTok would also be included.
According to the mayor’s office, the tax would be an extension of the city’s amusement tax and would include “large tech companies that profit from data monetization and users’ attention.”
The proposed Social Media Amusement & Responsibility Tax, or SMART, would charge big social media companies $0.50 per month per active user, exempting the first 100,000 users.
The tax would generate an estimated $31 million to fund expanded mental health services. Citing growing research about the negative affects of social media on mental health, the mayor’s office said it would be the nation’s first social media amusement tax, and city lawyers are prepared to defend against any potential legal challenges.
It’s not the only new tax proposed by the mayor for the budget.
The Johnson administration also wants to revive the corporate head tax on big companies and increase other taxes to plug the city’s projected budget gap of more than a billion dollars next year.
The mayor unveiled his so-called Protecting Chicago Budget plan to the Chicago City Council Thursday morning. It is now subject to council approval.
Here’s what else it include:
-a corporate head tax for the top 3 percent of businesses in Chicago.
-increased taxes on big tech companies.
-a tenfold increase in the vacant buildings fee.
-a new hemp tax.
-an increase in the boat-mooring rate at city harbors.
-a new online sports wagering tax.
-a restructuring of the ground transportation tax, or congestion surcharge.
The city is facing a projected gap of $1.12 billion next year and an even larger gap in 2027. Johnson, citing large cuts made by the Trump administration, is making good on his repeated promise to tax the “ultra-rich.”
“This budget is really designed to challenge our larger corporations and those with means to put more skin in the game,” Johnson told reporters. “It was increasingly clear that after the Trump cuts, that we have to push those with means to put more skin in the game.”
Noticeably absent from his budget proposal is a property tax increase, likely given his failed attempt to raise property taxes the previous fiscal year — after his original plan was unanimously rejected by Chicago City Council. The budget does not include an increase in the garbage collection fee as previously expected, and it removes the local grocery tax.
“There are a number of families who are reeling from Trump’s cuts to everything, but in particular … cuts to the SNAP program,” Johnson said. “Even though 600 municipalities around the state have decided to collect (the local grocery tax), because the state of Illinois decided not to collect it, we didn’t think at this time it was appropriate.”
from NBC Chicago https://ift.tt/HKuo0bn
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