Raise Taxes Or Increase Debt?

Ken O’Brien

At tonight’s meeting the Town Council took up the capital budget. This is a long needed as well as long neglected element of the town’s finances. Its very size is an indication of the extent to which the town has neglected its capital stock.

During the discussion of this matter the Council sidetracked once again into a discussion of its prior decision not to raise taxes.

That discussion centered on whether or not it was wise to incur additional debt obligations. It was estimated that doing so would increase the cost of these projects by an additional $240,000 over the ten year life of the bond. Councilor Steeves argued that it made no sense whatsoever to finance the cost of these projects through debt when it could be done through taxation within the levy limit without the associated interest cost. 

The S&P Sucker Punch

Kenneth M. O’Brien

If ever there was a situation that called for widely publicized hearings by the U. S. Senate it is the action by Standard & Poor’s to downgrade the debt of the United States.

To assume that S&P is some kind of independent, wholly objective watchdog is absolutely naïve and foolish.

Months before as well as within days of the announcement of the action by S&P to downgrade the debt of the United States from AAA to AA+, conservative media outlets began putting forward arguments that the action was not politically motivated. Forbes Magazine and Fox News’ Huckabee program were in the forefront of such arguments.