Quote:
Originally posted by XOMichelle
Issuing bonds can raise your taxes indirectly because at some point in time that debt needs to be paid back from the general fund (both 61 and 71 had provisions for bonds to be re-paid fom the general fund). I actually think bonds are less fiscally responsible than straight up taxes. Why pay twice the amount to get half the money if you don't need to?
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I just saw this but this is an example of how confused I get knowing you went to Stanford.
Bonds and Equity/Stock are the simplest financing techniques out there. Bonds=Debt and Equity/Stock is part ownership in a company. Public finance is conducted without equity financing.
As for how a municipal entity pays for something, it is done through issuing debt. It can issue bonds to create capital in a fund, it can issue bonds specifically for a project like building an airport, etc. The bonds can be paid for through many different ways including taxes and often through revenue streams like parking meter revenues. In fact you can securitize a revenue stream much like David Bowie sold bonds on his songs.
I have absolutely no idea where you came up with this awful understanding of what a bond is and how taxes are raised but you may want to study the things you vote for in the future.
-Rudey
--Oh and don't use phrases like fiscally responsible