HomeMy WebLinkAboutRESOLUTION 08-90C
RESOLUTION 8-90
WHEREAS,the productive capacity of the American economy and
the health,safety,and welfare of the nation depend upon the
quality of a reliable infrastructure and the availability of
adequate basic public facilities and services;and
WHEREAS,the principles of federalism,which have served
this nation for more than 200 years,include the immunity of
states and local governments from federal taxation of interest
for public functions in order to maintain the balance of power
between states and the federal government;and
WHEREAS,the federal government has steadily reduced its
responsibility for infrastructure requirements,and has shifted
more and more financial responsibility to states and units of
local government;and
WHEREAS,financing state and local government projects
through the issuance of bonds,the interest on which is not taxed
by the federal government,is critical to allow states and local
governments to exercise the responsibilities entrusted to and
expected of them;and
WHEREAS,in recent years,the U.S.Congress has both
limited the use of tax—exempt bonds by states and local govern
ments,and made municipal bonds less attractive to significant
groups of purchasers,thereby driving up the cost of financing
public service projects;and
WHEREAS,the U.S.Supreme Court overturned a 100 year-old
precedent,ruling for the first time that the Constitution does
not prohibit the federal government from taxing the interest on
state and local government bonds;and
WHEREAS,state and local borrowing costs will increase by an
estimated 20 —30 percent if the interest on tax-exempt bonds is
subject to federal income tax,and this added burden will be
reflected in reductions in public services or by increased state
and local taxes;and
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WHEREAS,shifting the tax burden from the national level to
state and local governments is an illusory savings for taxpayers
and provides no net tax relief;and
WHEREAS,further restrictions on the use of tax-exempt bonds
would seriously impair the ability of state and local governments
to finance essential services and facilities,including schools,
hospitals,prisons,roads,water,gas,electric,sewer,transpor
tation,and other basic functions,to the detriment of all
citizens.
NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF TRUSTEES OF
THE TOWN OF ESTES PARK,COLORADO:
1.That Congress and the President recognize that the
state and local burden of maintaining and expanding the national
infrastructure and providing citizens with needed basic
governmental services cannot be met without tax—exempt bonds.
2.That Congress and the President resist all further
efforts to reduce the use of such bonds to finance governmental
proj ects.
DATED this /3 day of
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TOWN OF ESTES PARK
Mayor
ATTEST:
Town Clerk
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