HomeMy WebLinkAboutR-1985-16
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RESOLUTION NO. 85-16
OPPOSING THE ADMINISTRATION'S PROPOSAL ELIMINATING THE
DEDUCTIBILITY OF STATE AND LOCAL TAXES FROM FEDERAL INCOME TAX
WHEREAS, on May 29, 1985, President Reagan submitted his tax
proposal for "fairness, growth and simplicity" to Congress; and
WHEREAS, the Administration's tax reform proposes to
eliminate the deductibility of state and local taxes from Federal
income tax; and
WHEREAS, state and local taxes have been deductible from
Federal income tax since its inception in 1913; and
WHEREAS, in our oplnlon, this provision would have highly
adverse effects upon the City of La Porte, Texas; and
WHEREAS, repeal of the deductibility of local taxes would
likely limit the City of La Porte, Texas, and other cities'
abilities to raise taxes; and
WHEREAS, the repeal of the deductibility of local taxes may
generate pressure for tax reductions, and the predictable result
of such a constraint on the fiscal capacity of the City of La
Porte, Texas, would be a significant reduction in the availability
of municipal services; and
WHEREAS, pressure to decrease taxes, in combination with
declining Federal assistance to the City of La Porte and other
cities, may lead to short-term budget crises which could adversely
affect the City of La Porte, Texas, as well as other local and
state governments' credit quality.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF LA PORTE, TEXAS:
THAT, the City Council of La Porte, Texas, goes on record as
opposing eliminating the deductibility of state and local taxes
(except state and local income taxes) from the Federal income tax,
which, if enacted into law would adversely affect the fiscal
capacity of the City of La Porte, Texas; and
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Resolution No. 85-16, Page 2
BE IT FURTHER RESOLVED THAT, copies of this Resolution shall
be sent to members of Congress urging them to oppose the provision
of the President's tax proposal which would eliminate the
deductibility of state and local taxes from Federal income tax.
PASSED AND APPROVED this the 14th day of October, 1985.
CITY OF LA PORTE
By (i&?rL~ llL~
Nor an Malone, Mayor
ATTEST:
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City Secretary
APPROVED:
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City Attorney ,