For example the local jail wants to expand. and says 500k is enough. But the council city puts it as a tax which keeps getting chared afted that 500k we keep giving money instead of taking it off the books.
In some municipalities, I think they have a different word for temporary tax increases (though I don’t think I’ve heard it as Bond anywhere yet?). Bond usually means a government selling ‘IOU’ slips to people, and the government has to pay them back with interest. (Only paying back with more bonds would be a ponzi scheme. Hard to maintain.)
But for taxes, plenty of changes and institutions are going to cost money for the foreseeable future. So a permanent tax is used to fund, say, schools.
Also, passing a permanent tax gives you the opportunity to use the future tax revenue without having another law passed. You can also get the predicted amount wrong.
Another benefit, someday you can cancel the tax and look productive/important.
For example the local jail wants to expand. and says 500k is enough. But the council city puts it as a tax which keeps getting chared afted that 500k we keep giving money instead of taking it off the books.
I find this clarifying.
In some municipalities, I think they have a different word for temporary tax increases (though I don’t think I’ve heard it as Bond anywhere yet?). Bond usually means a government selling ‘IOU’ slips to people, and the government has to pay them back with interest. (Only paying back with more bonds would be a ponzi scheme. Hard to maintain.)
But for taxes, plenty of changes and institutions are going to cost money for the foreseeable future. So a permanent tax is used to fund, say, schools.
Also, passing a permanent tax gives you the opportunity to use the future tax revenue without having another law passed. You can also get the predicted amount wrong.
Another benefit, someday you can cancel the tax and look productive/important.