More Taxes May Not Be the Answer

One of my biggest pet peeves with government, at any level, is that the moment there's a cash shortage the immediate response is to raise taxes. Cutting spending is never considered first. The latest example of ridiculous taxation ideas just popped up in Chicago.

CBS2, the local Chicago CBS affiliate, recently reported that Mayor Richard M. Daley is proposing an increase in the city tax on parking from 27 percent to 33 percent. The CBS report says, citing the local parking industry, that "...taxes have been raised six times in the past 12 years, and they have no choice but to pass that cost onto the drivers." And that's always the way it works, isn't it? Companies never actually pay these taxes. They are always passed onto consumers - always.

The local parking industry also said Chicago ranked second only to Pittsburgh when it comes to parking taxes in the United States. The tax in Pittsburgh is 45 percent, recently reduced from 50 percent. The CBS affiliate says the current monthly average for parking in Chicago is about $300 per month. That dollar figure would rise to about $315 per month if the new tax is implemented.

Complaining about parking prices in Chicago, InterPark employee Jim Doria told CBS, "A big portion of that right now is between the city and county taxes. People don't really realize that." Maybe getting hit with a 33 percent tax on parking will make them realize how much they are getting soaked by the Chicago city government.

CBS2 says some city residents are fed up. "We are getting hit from all sides, and this is another side that's getting hit," CBS2 quotes Chicagoan Randy Banks as saying. CBS2 says the latest tax hike proposal is designed to "...help close a massive budget shortfall" and that Mayor Daley "...has also proposed hiking the city's two-tiered amusement tax from 4 to 5 percent for mid-sized venues, and 8 to 9 percent for large sporting venues." Guess tickets to see the Bulls, Bears, and White Sox will be seeing an increase as well, since I doubt the owners of those franchises will suck up the new tax out of the goodness of their hearts.

Here's an idea: try trimming the fat. I bet that a thorough review of the city budget would reveal some areas that could be scaled back or even eliminated. But then that's not the nature of government, is it? The first answer always seems to be raising taxes, not cutting spending.