Cloud Computing Tax Threatens Chicago’s Silicon Valley Dream (1)

Chicago’s bid to become the Silicon Valley of the Midwest has registered some major wins in recent years: Google bought a huge downtown building, PsiQuantum Corp. announced a $1 billion investment in the city, and local startups raised a record $19 billion in 2022.

Now a move to increase an unusual tax on cloud computing risks adding to a broader technology industry downturn to derail progress in the third-largest US city.

Faced with a nearly $1 billion deficit for next year, Mayor Brandon Johnson has proposed an additional $128 million in revenue by increasing the levy, first implemented in ...