1985-065-RES WHEREAS, on May 29, 1985, President Reagan submitted his tax proposal to Congress; and,

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. . RESOLUTION NO. 85-065 WHEREAS, on May 29, 1985, President Reagan submitted his tax proposal to Congress; and, WHEREAS, included in the President's tax proposals are provisions which would eliminate or limit the tax-exempt status of state and local government bonds, including bonds issued by the City of Paris, Paris, Texas; and, WHEREAS, the President's proposals would deny tax- exempt status to bonds where the private sector benefits directly or indirectly from the use of more than one percent of the proceeds of the bond issue; would eliminate all advance refundings of tax-exempt bonds; would restrict the investment of bond proceeds; would require that certain earnings from the investment of bond proceeds be paid to the U. S. Treasury Department; would require that an Internal Revenue Service information report be filed for every bond issue; and would impose additional taxes on banks that purchase tax-exempt bonds; and, WHEREAS, each of the President's proposed limitations on tax-exempt municipal bonds would adversely affect the City of Paris, bond issues and the use made of facilities financed with such issues, requiring filings with the Internal Revenue Service and review by the Internal Revenue Service of each bond issue, and jeopardizing the tax- exemption on bonds where the private sector benefits directly or indirectly from the use of more than one percent of a project financed by such bonds; and, WHEREAS, the President's municipal bond proposals will result in an increase in costs which must be passed on to the citizens of Paris, Texas, to provide vital public services to such citizens and will impose added federal bureaucratic controls over the provisions of such services; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, That the City Council of the City of Paris goes on record as oppos~ng the limitations and restrictions on municipal bonds proposed by the President, which, if enacted into law would adversely affect all tax-exempt municipal bonds, including bonds issued by the City of paris, Paris Texas; and, BE IT FURTHER RESOLVED, that copies of this Resolution shall be sent to members of Congress urging them to oppose the provisions of the President's tax proposals which would impose new limitations on the issuers and purchasers of municipal bonds. Passed and adopted this 12th day of August, 1985. --tA -' , J1