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File Number: 13-315 <br />Whereas, Congress and the President have proposed legislation to reduce or repeal <br />the tax exemption on municipal bonds; and <br />WHEREAS, these proposals to reduce or repeal the tax exemption would have <br />severely detrimental impacts on national infrastructure development and the municipal <br />market, raising costs for state and local borrowers and creating uncertainty for investors; and <br />WHEREAS, if the proposal to cap the exemption on municipal bonds at 28 percent had <br />been in place over the last 10 years it would have cost state and local governments an <br />additional $173 billion in interest costs; and <br />WHEREAS, total repeal of the exemption over the last decade would have cost state <br />and local governments over $495 billion in additional interest costs; and <br />WHEREAS, the municipal tax exemption has a long history of success, and it <br />continues to finance the majority of our nation’s infrastructure needs for state and local <br />governments of all sizes when no other source exists to do so. <br />Now, Therefore, Be It Resolved that the City Council of the City of San Leandro <br />opposes any efforts by Congress and the White House to reduce or repeal the federal tax <br />exemption on interest earned from municipal bonds; and <br />BE IT FURTHER RESOLVED that we oppose any action that would reduce or repeal <br />the exemption on tax-exempt bond interest, and affirm that there should be no legislative <br />action to apply any changes retroactively to current outstanding bonds; and <br />BE IT FURTHER RESOLVED that a copy of this resolution shall be sent to our <br />Congressional Representatives and key members of the Administration . <br />Page 2 City of San Leandro Printed on 6/11/2013