HomeMy Public PortalAboutr 03:043No 03-43 Date of Adoption Jaramry 16, 2003
OPPOSING PRESIDENT BUSH'S PROPOSAL TO ELIMINATE THE
TAX ON CORPORATE DIVIDENDS
WHEREAS, President Bush has proposed a new economic plan that includes the
elimination of the tax on corporate dividends; and
WHEREAS, this aspect of President Bush's economic plan could have a negative
effect on municipal finances and these concerns have been confirmed by the
National League of Cities; and
WHEREAS, if implemented, this proposal to eliminate the tax on corporate
dividends could have a significant impact on local government finances by
making municipal bonds less attractive to investors; and
WHEREAS, those individuals seeking to minimize taxes have long purchased
municipal bonds because the interest paid on these bonds is tax free; and
WHEREAS, if dividends paid to shareholders are no longer taxable, stock
ownership may become a more attractive investment for those individuals who
may otherwise have purchased municipal bonds; and
WHEREAS, to the extent this proposal encourages people to invest in stocks
rather than municipal bonds, it may be more difficult and expensive for
municipalities to borrow necessary funds for public projects at a time when state
and federal funding for local governments is being cut back or eliminated;, and
WHEREAS, if it becomes more expensive for municipalities to borrow funds for
necessary governmental projects, local property taxes will likely increase as a
result; and
WHEREAS, it is well recognized that local real estate taxes more negatively
impact families of lower and moderate income who are already unfairly burdened
under the present economic conditions.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the
Borough of Carteret, County of Middlesex, and State of New Jersey, oppose that
aspect of President Bush's new economic plan that calls for the elimination of tax
on corporate dividends.
BE IT FURTHER RESOLVED that a copy of this Resolution be forwarded to:
Congressman Robert Menendez and the other members of the Ne~v Jersey
Congressional Delegation urging them to oppose this component of President
Bush's economic plan.
tklopt~l this 16th ¢1~ of ..la,tory,
· '~d c~"cifi~] as a t~*m capy of bbe.
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RECORD OF COUNCIL VOTE
COUNCILMANKRuM YESx NO NV A.B. COUNCILMANRio~I]YESx NO NV A.B,
NAPLES X S06'N(/dSKI X
___ PARISI X S ITARZ X
X - Indicate Vote AB - Abseut NV - Not Voting XOR - Indicates Vote to Overrule Veto
Adopted at a meeting of the Municipal Council
January 16, 2003
CLERK