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HomeMy WebLinkAboutRES 85-270 R E S O L U T I O N WHEREAS, certain proposals to be considered by the United States Congress would destroy the Federal tax deduction for state and local taxes; and, WHEREAS, the Federal deduction for State and local property, income and sales taxes is essential to the economic well-being of moderate income Americans; and, WHEREAS, the deduction for State and local taxes has been part of the tax code of the United States since 1913 when the first Federal Income Tax was enacted; and, WHEREAS, the purpose of the deduction for State and local taxes is to protect individuals from double taxation of their income; and, WHEREAS, the financial health of the City of Beaumont and other local governments would be compromised if State and local taxes were no longer deductible from Federal tax returns; and WHEREAS, many familes would not be able to afford a home without the Federal deductions for local property taxes; and, WHEREAS, businesses would flee urban metropolitan areas which have a sales tax and would thus erode the tax base of such metropolitan areas which must raise substantial revenues to support needed governmental services; and, WHEREAS, repeal of the deduction for State and local taxes would tend to depress property values, penalizing familes who purchased homes years ago based on the then current tax law; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby urges the United States Congress to enact no legislation which would limit the deductibility of State and local property income and sales taxes for Federal Income Tax purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1985. /—"�iLwj'al Mayor - 2 -