Street dining in La Jolla Shores. (File photo by Dave Schwab/Times of San Diego)
In San Diego, whenever city hall faces a challenge, the answer always seems to be the same: raise taxes, raise fees, and pass the burden onto small businesses and working families. Instead of addressing inefficiency, bureaucracy, or wasteful spending, city leaders continue to choose the easy path — taking more from those who already carry the heaviest load. The result is a city that’s more expensive, less competitive, and increasingly difficult for local employers to survive in.
The latest proposal to charge hotels and restaurants more for valet stands and on-street dining is just the newest example of this misguided approach. City officials claim they’re merely trying to recover potential parking-meter revenue. But for the small businesses that form the backbone of our tourism and hospitality industries, this proposal feels like another nail in the coffin.
“We can’t absorb any more costs. We are teetering,” one local restaurant owner told the San Diego Union-Tribune. That’s not a complaint — it’s a warning. When small businesses say they cannot take any more, policymakers should listen.
City leaders say they are trying to make up for lost revenue, but what they’re really doing is driving away the very entrepreneurs and employers who keep San Diego’s economy running. Independent restaurants, family-owned cafés, and local hotels already face some of the highest operating costs in California. Each new fee, regulation, or tax increases the risk that more businesses will shut their doors for good.
Unfortunately, the city’s appetite for new revenue doesn’t stop there. Another proposal would impose a new tax on vacation homes and short-term rentals. Supporters call it “fairness,” but in reality it punishes property owners who contribute to the local economy through investment, job creation, and tourism.
These are not faceless corporations. Many are San Diegans who have invested their savings into maintaining a second home, creating rental opportunities for visitors, and providing jobs for cleaners, landscapers, and maintenance workers. Instead of supporting that economic activity, City Hall is sending a clear message: if you invest in San Diego, prepare to pay more.
Adding to the list of cost increases, the City Council just raised the minimum wage to $25 per hour for hospitality and event workers — well above the state mandated minimum wage and soon will be targeting other industries. While that may sound appealing, it ignores basic economic realities.
When labor costs rise, small businesses can’t simply absorb the difference. They must raise prices, cut staff, or close their doors altogether. The ripple effects are severe: workers lose jobs, customers pay more, and neighborhoods lose the local establishments that give San Diego its character.
All these decisions have one thing in common: they make San Diego less affordable for everyone. From rising rents and grocery prices to costly permits and business fees, residents and employers alike are paying the price for short-sighted policies. Rather than finding creative ways to grow the economy, city hall keeps choosing to squeeze more out of those already struggling to stay afloat.
City government should focus on making San Diego more affordable — not less. True leadership means prioritizing efficiency, accountability, and smarter spending. It means cutting red tape, streamlining permits, and making it easier for small businesses to open, grow, and hire. The city should reward entrepreneurship, not penalize it.
At the Lincoln Club Business League, we believe prosperity begins with freedom and opportunity. When small businesses thrive, families succeed, and communities grow stronger. Raising taxes and fees isn’t leadership — it’s avoidance. The people who make this city work — its business owners, workers, and residents — deserve better.
If city hall truly wants to help San Diego thrive, it must stop punishing those who create jobs and opportunity and start focusing on policies that make our city affordable again. San Diego’s future depends on it.
Scott Bedingfield serves as the chairman of the Lincoln Club Business League in San Diego.
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