you are viewing a single comment's thread
view the rest of the comments
[–] 8 points 6 days ago* (last edited 6 days ago) (1 child)

You mean, could a mayor take surplus tax revenue and lend it out to earn interest (buy bonds)? I suppose that's possible, assuming the city council approves.

Cities usually have the opposite problem, though. Voters didn't like to pay taxes, so cities operate with very little surplus cash. They often need to borrow money (issue bonds) to pay for capital projects like new school buildings.

  • source
  • hideshow 1 child comment
  • [–] [S] 1 point 6 days ago

    I meant like the sherif asking for half a cent sales tax to build or add on a bigger jail. That tax goes on and on and on. But doesn't a bond have a limit so when they reach that limit it will lower taxes for the bond?

  • source
  • parent