One of the hardest things to understand is why elected officials continue to raise taxes.

If elected leaders don’t make the tough economic and political decisions to cut expenses and eliminate waste, corruption and fraud, we very well could meet the same financial fate as Detroit.

Detroit witnessed home abandonment and an exodus of residents after leaders failed to cut expenses, continued to raise taxes, and gifted retirees and workers with generous bonuses. As negotiations for Chicago’s fiscal year 2024 budget heat up, Mayor Brandon Johnson has not stated his position on a city income tax, although a plan by his progressive allies would levy a 3.5% tax on all household income above $100,000 and a host of other new taxes.

As a business owner, I know from experience: When elected officials raise taxes, it drives people out of the state. The state’s gas tax last month increased by 6.2 cents for a total of 45.4 cents per gallon, and the grocery tax has been restored. Many Illinois residents travel to Indiana to buy gas and groceries. Higher fees hurt Illinois residents who already pay some of the highest property taxes.

Additionally, Illinois restaurants raise their prices or find ways to offset increased costs. For example, several restaurants have kept COVID-19 surcharges or implemented new surcharges to offset rising food, beverage, labor, benefits and supplies costs. The surcharges normally range from 3% to 20%, excluding taxes and gratuity. In New York City, restaurant surcharges had to end once COVID-19 restrictions were lifted. That is not the case in Chicago. COVID-19 surcharges are a hidden tax to cover restaurant costs. Working-class families experience the same pressures from rising inflation, property taxes, gas prices, food costs and utility bills that restaurants do.

Another surcharge consumers face is convenience fees for paying by credit card. The average credit card processing fee ranges between 1.5% and 3.5%. Business owners say they must offset the cost of fees charged by credit card companies. Currently, Visa and Mastercard control nearly 80% of the market, and businesses have lost their ability to negotiate costs down. During COVID-19, many businesses moved away from cash transactions because of safety concerns handling currency. Additionally, rising crime associated with cash has caused businesses to move to electronic transactions only. A proposal in Evanston to require all restaurants to accept cash was voted down 8-1. When businesses don’t accept cash, those who are unbanked and don’t own credit cards are harmed.

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We must ask this question regarding all the taxes and fees we pay: What are we getting for our tax dollars? A 2021 report by Truth in Accounting, a government finance watchdog group, ranked Illinois 48th in the country in terms of fiscal health; only New Jersey and Connecticut were worse. The report concluded that Illinois had about $39 billion available to pay nearly $250 billion worth of bills. The group gave Illinois an “F” in terms of the state’s finances. The city of Chicago also received an “F” for its fiscal health. According to the report, Chicago had $48.6 billion in bills and only $9.9 billion in available assets to pay those bills after capital and restricted assets were excluded.

In Chicago, we have an undeclared state of emergency with respect to crime. Retail stores are locking up products behind glass cases to prevent theft. Our students are falling behind their peers around the world in education because of a curriculum that does not challenge them, absent parents, lack of teacher accountability, inadequate infrastructure and a union that uses children as political pawns in their pursuit of power. Government leaders have failed to address the homeless crisis in our city. Our citizens are sleeping at airports, in parks and under bridges. This is unacceptable.

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I recommend the following solutions to get our fiscal house in order:

1. Gov. J.B. Pritzker, House Speaker Emanuel “Chris” Welch, Senate President Don Harmon and Mayor Brandon Johnson, all Democrats, should immediately lower taxes on residents and businesses. Lowering taxes will make Illinois and Chicago competitive with surrounding states, cities and counties.

2. Johnson should expand casino gaming, particularly slot machines at O’Hare and Midway airports. Recent studies suggest this could add $37 million per year in revenue to the city.

3. Pritzker and the legislature should end COVID-19 surcharge fees.

4. Pritzker and the legislature should enact reforms to its retirement systems and cut wasteful spending.

5. Pritzker and the legislature should consolidate and streamline government in Illinois.

6. Pritzker and the legislature should suspend the tax on gas and groceries to offer relief to families. Illinois is one of 13 states that tax groceries.

Chicago lost more than 81,000 residents from 2020 to 2022. The state lost 104,000 residents last year, according to census data. If we continue on the current trajectory, there will not be enough residents and businesses to tax.

I’m writing this to make those comfortable with raising taxes and fees uncomfortable. Raising taxes hurts all of us, and it should be done only after politicians begin to make shared sacrifices by cutting their pay.

We taxpayers are not ATMs dispensing limitless funds for politicians’ reckless spending.

Willie Wilson is a business owner, philanthropist and former mayoral candidate.

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