May 2, 2014 5:38PM 

# More Spending without New Taxes? 

By [Jeffrey Miron](https://www.cato.org/people/jeffrey-miron) 

---

<a class="js-popover-trigger cursor-pointer popover-trigger" data-bs-placement="bottom" data-bs-trigger="click" id="popover-trigger"> 

SHARE 

</a> 

Wellesley, Mass., the town I live in, sent residents this message earlier today:

> In April 2014, the Wellesley Annual Town Meeting approved … the acquisition of property at 494 Washington Street… A few citizens, determined to derail the acquisition, obtained sufficient signatures to put a referendum on the ballot requiring voters to confirm the Town Meeting vote.
> 
> 
> A YES vote on Question 1 … confirms the action taken by Town Meeting…
> 
> 
> There is **NO tax increase** associated with this vote; the acquisition will be financed using short-term debt under the levy.

Sentences like that last one are enough to make an economist’s head explode. Why? Because more debt-financed expenditure now means higher taxes later. It’s that simple.

##### Related Tags 

[Tax and Budget Policy](https://www.cato.org/tax-budget-policy) 

[![Creative Commons License](/build/cato_2020/images/creative-commons.svg)](http://creativecommons.org/licenses/by-nc-sa/4.0/) 
This work is licensed under a [Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License](https://creativecommons.org/licenses/by-nc-sa/4.0/).