Laserfiche WebLink
~ • <br />RESOLUTION N0. 85-16 <br />OPPOSING THE ADMINISTRATION'S PROPOSAL ELIMINATING THE <br />DEDUCTIBILITY OF STATE AND LOCAL TAXES FROM FEDERAL INCOME TAX <br />WHEREAS, on May 29, 1985, President- Reagan submitted his tax <br />proposal for "fairness, growth and simplicity" to Congress; and <br />WHEREAS, the Administration's tax reform proposes to <br />eliminate the deductibility of state and local taxes from Federal <br />income tax; and <br />WHEREAS, state and local taxes have been deductible from <br />Federal income tax since its inception in 19?3; and <br />WHEREAS, in our opinion, this provision would have highly <br />adverse effects upon the City of La Porte, Texas; and <br />WHEREAS, repeal of the deductibility of local taxes would <br />likely limit the City of La Porte, Texas, and other cities' <br />abilities to raise taxes; and <br />WHEREAS, the repeal of the deductibility of local taxes may <br />generate pressure for tax reductions, and the predictable result <br />of such a constraint on the fiscal capacity of the City of La <br />Porte, Texas, would be a significant reduction in the availability <br />of municipal services; and <br />WHEREAS, pressure to decrease taxes, in combination with <br />declining Federal assistance to the City of La Porte and other <br />cities, may lead to short-term budget crises which could adversely <br />affect the City of La Porte, Texas, as well as other local and <br />state governments' credit quality. <br />THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL <br />OF THE CITY OF LA PORTE, TEXAS: <br />THAT, the City Council of La Porte, Texas, goes on record as <br />opposing eliminating the deductibility of state and local taxes <br />from the Federal income tax, which, if enacted into law would <br />adversely affect the fiscal capacity of the City of La Porte, <br />Texas; and <br />BE IT FURTHER RESOLVED THAT, copies of this Resolution shall <br />be sent to members of Congress urging them to oppose the provision <br />~~ <br />