2012年10月31日星期三

The tax wolf in bond clothing

When people hear "bond" it's likely to conjure up positive sentiments such as James or savings.These 85% OFF! Achat Lacoste pas cher are most likely the most popular footwear ever manufactured on the planet. They're for everyone, kids, the middle aged as well as the elderly as they have grip to prevent falls. Few people think "tax,They are a traditional type of Polo Couche Homme, generally related to an old generation." but that's the decision confronting Californians like never before. Come Nov. 6, $14.4 billion in bond measures will be on the ballot. (It's actually closer to $40 billion as you'll see below.) Over the last decade statewide straight tax initiatives don't have a good passing rate, but 80 percent of school bonds have been approved since 2001 when laws changed requiring only 55 percent approval instead of the super majority 2/3rds. School officials have spotted this easy money and are drowning citizens with a whopping 600 percent increase in the amount of bonds compared to the last election.

Bonds are loans government entities takes out with a promise to repay using future collected taxes.Now, you do not need to contend yourself with just pair of jeans and Polo Veste Homme. These loans typically have a payback period of 20-40 years. Repayment plans can vary much like house or auto loans. There can be introductory teaser rates, interest only or even periods of no payments like Poway, Santee and dozens of other school districts have entered into which will see them paying back 10-20 times what they initially borrowed.Why are school bonds so easily approved while traditional tax initiatives are voted down?

Many citizens don't have the economic sophistication to understand bonds are a form of taxation. The ballot language for bond measures talks about "issuing" and "selling" bonds.Usually when products are sold there's a profit made which is a positive step for finances. Deeper in the ballot text it mention a tax will be required, but that's surrounded by dense financial language that most gloss over. If the ballot language used the more understandable borrow and loan terms voters would better appreciate the implications of bonds.

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