They derive their right to tax as recognized entities from the states wherein they are incorporated. There is no limit to what they can tax according to their charter, as long as no higher jurisdiction forbids it.
THIS is why you see rich cities like San Francisco and Chicago preaching ever higher taxes, while simultaneously providing worse services for it's citizens.
There's a feedback loop missing where there are actual consequences to the city council when quality of service isn't delivered, but instead, city politicians indulge in emotionally appealing
demagoguery, further increase taxes, line their pockets and continue to not deliver
So in other words, voters continually vote against their own long-term interests? I don't see how this is going to be solved by getting the democratically-elected state legislature to pass laws restricting the cities' taxing powers.
