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<br />. <br /> <br />. <br /> <br />RESOLUTION NO. <br />86-7 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, <br />URGING THE UNITED STATES CONGRESS TO ENACT NO LEGISLATION TO TAX <br />OR RESTRICT THE CONTINUED ISSUANCE OF TAX-EXEMPT OBLIGATIONS OF <br />STATE AND LOCAL GOVERNMENT. <br /> <br />WHEREAS, the municipalities and counties of Texas <br />finance capital projects for various purposes defined as public by <br />State law through the issuance of obligations whose interest is <br /> <br />exempt from Federal income taxation; and <br /> <br />WHEREAS, the projects financed with said obligations <br />provide for the benefit of all area citizens and build roads, <br /> <br />schools, sewer lines,. public and charitable hospitals, and <br />low-income housing among other facilities; and <br /> <br />WHEREAS, the tax exemption of said obligations has <br /> <br />lowered the cost of borrowing for all states and localities the <br />cost of providing essential projects and services at the state and <br />local level; and <br /> <br />WHEREAS, the tax exemption on said obligations is not a <br /> <br />mere tax expenditure but stems from the Constitutional doctrine of <br /> <br />reciprocal immunity Which exempts from Federal income taxation <br /> <br />interest earned on state and local government obligations; and <br /> <br />WHEREAS, certain proposals considered by the United <br />States Congress would severly restrict the ability of states and <br />localities to issue such obligations for public purposes as <br />defined by duly enacted State statute and prohibit the use of <br />