Oppose Chicago's Proposed Social Media Tax in 2026 Budget

I am writing to express my strong opposition to the proposed Social Media Amusement & Responsibility Tax (SMART) included in Mayor Brandon Johnson's 2026 budget proposal. While I appreciate the city's efforts to address the projected $1.15 billion deficit without burdening residents with new taxes, the SMART tax is a misguided approach that could have unintended negative consequences for our city. The proposed tax of 50 cents per active user over 100,000 in Chicago is problematic on multiple fronts. First, it would be extremely challenging to administer fairly. Determining accurate user counts and enforcing compliance would likely lead to disputes and potential legal challenges, creating unnecessary administrative burdens for the city. Moreover, this tax could stifle business growth and innovation in Chicago's tech sector. As our city strives to become a hub for technology companies, imposing such a tax sends the wrong message to potential investors and entrepreneurs. It could discourage social media companies from maintaining a significant presence in Chicago or lead them to artificially limit their user base to avoid the tax threshold. Perhaps most concerning is the likelihood that this tax would ultimately be passed on to consumers. Social media companies may increase advertising costs or introduce user fees to offset the tax, effectively negating the mayor's promise of no new taxes for Chicago residents. While I understand the city's intention to generate $31 million for mental health programs, I believe there are more effective and less problematic ways to achieve this goal. If the city believes it is incurring costs due to social media-related harm, the appropriate course of action would be to seek recompense through the legal system, not through a potentially harmful and difficult-to-implement tax. I urge you to oppose the SMART tax and work with your colleagues to find alternative funding sources for mental health initiatives. The Community Safety Fund and the record $1 billion Tax Increment Financing surplus present opportunities to allocate resources more effectively without resorting to this ill-conceived tax on social media companies. As the City Council negotiates changes to the budget proposal, I implore you to prioritize solutions that foster economic growth, support local businesses, and address mental health concerns without compromising Chicago's potential as a technology leader. The deadline for finalizing the budget is approaching at the end of the year, making it crucial to address this issue promptly. Thank you for your attention to this matter. I look forward to seeing a revised budget proposal that excludes the SMART tax and better serves the interests of all Chicagoans.