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" • •C:ek:12/21/59_7 <br /> RE SOLUTI ON NO. 2 944 <br /> RESOLUTION OPPOSING FEDERAL TAXATION OF INTEREST <br /> PAID UPON MUNICIPAL OBLIGATIONS AND UPON MUNICIPAL <br /> INCOME <br /> WHEREAS, this Council has been advised that the Ways and <br /> Means Committee of the House of Representatives is giving con- <br /> sideration to extension of Federal taxation upon interest paid <br /> by municipalities upon their financial obligations; and, <br /> WHEREAS, this Council is further advised that this Committee <br /> is also giving consideration to extension of Federal taxation to <br /> include the taxing of income of municipalities; and, <br /> WHEREAS, any Federal tax on the interest paid by muni- <br /> cipalities upon their financial obligations would increase the <br /> cost of borrowing money and therefore inequitably assign a <br /> greater Federal tax burden upon local taxpayers in those communi- <br /> ties which are attempting to provide necessary public facilities <br /> through bond financing; and, <br /> WHEREAS, Federal taxation of municipal income would inequitably <br /> penalize and discourage those municipalities which are operating <br /> municipal utilities on a "pay -as- you -go" self - liquidating basis; <br /> NOW, THEREFORE; <br /> BE IT RESOLVED BY THE COUNCIL OF THE CITY OF REDWOOD CITY, <br /> AS FOLLOWS: <br /> The Council of the City of Redwood City does hereby state <br /> its opposition to any Federal legislation which would impose <br /> Federal taxation upon the interest paid by states, cities, and /or <br /> counties, upon their financial obligations, and /or upon the in- <br /> come of states, cities, and /or counties; and, <br /> BE IT FURTHER RESOLVED: <br /> The City Clerk is hereby directed to forward copies of this <br /> resolution to local Congressman Younger, to the Chairman of the <br /> Ways and Means Committee of the House of Representatives, and <br /> to the League of California Cities. <br /> * * * <br />