R-1985-12 - Laserfiche WebLink

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~ . . RESOLUTION NO. 85-l2 RESOLUTION IN OPPOSITION TO THE PRESIDENT'S TAX PROPOSALS FOR MUNICIPAL BONDS WHEREAS, on May 29, 1985, President Reagan submitted his tax proposal for "fairness, growth and simplicity" to Congress; and WHEREAS, included in the President's tax proposals are provisions which would eliminate or limit the tax-exemption of state and local government bonds including bonds issued by the City of La Porte; and WHEREAS, the President's proposals would deny tax-exempt status to bonds where the private sector benefits directly or indirectly from the use of more than one percent of the proceeds of the bond issue; would eliminate all advance refundings of tax-exempt bonds; would restrict the investment of bond proceeds; would require that certain earnings from the investment of bond proceeds be paid to the U. S. Treasury Department; would require that an Internal Revenue Service information report be filed for every bond issue; and would impose additional taxes on banks that purchase tax-exempt bonds; and WHEREAS, e~chlof the President's proposed limitations on tax-exempt municipal bonds would adversely affect the City of La Porte by increasing borrowing costs, requiring continuous administrative review of bond issues and the use made of facilities financed with such issues, requiring filings with the Internal Revenue Service and review by the Internal Revenue Service of each bond issue, and jeopardizing the tax-exemption on bonds where the private sector benefits directly or indirectly from the use of more than one percent of a project financed by such bonds; and