RE 10-10-78 RESOLUTION NO. 101078
WHEREAS, the primary argument against the present tax exempt-
ion on Municipal bonds is that it creates tax inequity for the wealthy
investors who avoid paying their fair share of taxes; and
WHEREAS, Municipal exempt bonds do carry an "implicit tax"
in the form of lower rates at return than paid by taxable bonds; and
WHEREAS, the implicit tax has qenerally been approximately
30% on long-term municipal bonds~ and
WHEREAS, the implicit tax has generally been approximately
50% on short-term municipal bonds; and
WHEREAS, all citizens are the real recipients of the benefits
of tax exempt bonds in the form of lower interest rates; and
WHEREAS, complete or partial removal of the tax exempt status
on municipal bonds would require additional taxes paid by citizens
whether in the form of local ad valorem or federal taxes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF COPPELL:
SECTION 1. The City of Coppell is'unalterably opposed to
either partial or complete removal of the tax exempt status on
municipal bonds.
SECTION 2. A copy of this resolution be submitted to the
Texas Municipal League at the Annual Meeting for consideration of
other cities within the League.
DULY PASSED by the City of Coppell on this the~(~-~ day of October,
1978.
John '. Burns, Mayor
AIl'EST:
Dorothy Tire'ns, Cit~ Secretary