The Illinois Senate attempted to pass a “rescue package” for Chicago area mass transit that would punish suburban homeowners with a new real estate transfer tax. State leaders must instead focus on reforms to boost housing and economic growth.

Chicago Mayor Brandon Johnson likes to parrot platitudes about taxing the rich to fix the city, CTA and Chicago Public Schools finances. But all three made bad decisions and did not adjust to post-pandemic realities. And the rich can move away.

Adding sales taxes to services is limited in the U.S., with 46 states not generally taxing services. Illinois may break from the pack and start adding sales taxes to haircuts, lawn care, car repair and a long list of other service expected to cost $2.7 billion.

Illinois lawmakers are looking to expand sales taxes to include things such as streaming services, gym memberships, vehicle repairs, hair care and other services to bail out Chicago’s failing transit systems and put more money in government budgets.

Chicago might have just avoided a property tax hike, but city leaders couldn’t figure out how to pass the 2025 budget without other tax and fee increases. Here’s what the city should do to avoid repeating the same budgeting mistakes next year.