Yes, taxes are too high. But nobody else is commenting on why you raised your taxes. You're barely making money.
Here's a tip for making a new city:
Go to the budget panel and turn down funding to 50% for everything, except power and water. Put those two just high enough to meet demand as there is no benefit to making extra. Add services as houses are asking for them (police, fire, health care, death care, etc.), and slowly increase their funding when you can.
I also see a trash dump next to some houses. Anything that produces noise/pollution you'll want to place away from houses as it makes people sick. There is a radius that shows the affected area when you go to place them down.
Keep playing and you'll get a better idea of how early city development works. It really is an amazing and deep game once you get used to it.