Suck it Up, or Tax

Sacramento Bee Columnist Daniel Weintraub, who writes California Insider explains...

A bond is not a tax A number of readers have written me suggesting that the Schwarzenegger deficit bond amounts to a tax increase. Aside from whether the bond is a good idea or a bad idea, it is simply not accurate to call it a tax increase. The bond represents a spending commitment locked in over the term of repayment. If the debt service is $1 billion a year for 30 years, that's $1 billion each year that won't be available to spend on current programs and services. Taxpayers wouldn't be paying more. They just wouldn't be getting as much in return for what they are paying. Some of the confusion may stem from the fact that local school bonds do come with tax increases attached. When you vote for a local school bond, you are voting to raise your property taxes by the amount needed to retire the bond over time. The same does not apply to state general obligation bonds. They are spending commitments, not tax increases.

Wel, now, that's so comforting to know. When the bond payments come due, Californians can either suck it up and accept fewer government services, or.... RAISE TAXES. Six of one....