Johnson presented a $17.6 billion budget proposal Wednesday to address an $882 million gap. It includes a monthly $25-per-worker tax on companies with at least 125 full-time employees. Businesses would be eligible for credits for employees working in areas the city designates as socioeconomically disadvantaged.

The mayor says the head tax could raise $101 million and argues that large corporations should contribute more to city services. Opponents contend it could deter businesses and hinder job growth. Twenty-nine aldermen previously signed a letter opposing the measure.

Ald. Bill Conway, 34th, said after the budget address that the proposal had little chance of passing, calling its inclusion in the plan disingenuous. Ald. William Hall, 6th, defended the approach, saying the tax credits could encourage companies to locate closer to workers in underserved neighborhoods.

The proposal also includes a 15-cent tax on packaging used for carry-out and delivery, extending the city’s existing retail bag tax. The city estimates it would generate $9 million.

Johnson is seeking to raise the tax on sports betting companies to 20% from 10.25%, which his office estimates would bring in $37 million. The city’s authority to impose the tax is being challenged in court, with opponents arguing that only Illinois can levy it.

Another proposal would increase the personal property lease tax from 15% to 20%. Car leases would remain taxed at 15%, while the rate for film production equipment leases would fall to 11%. The mayor’s office estimates the changes would generate $234 million.

Residents can ask Johnson questions during Thursday’s virtual town hall. The City Council has until Dec. 31 to approve a budget.