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5/1/90(LEGAL)Reso2(Vk)GW RESOLUTION NO. 90-57 A RESOLUTION OF INDIAN RIVER COUNTY, FLORIDA, BY ITS BOARD OF COUNTY COMMISSIONERS, TO THE CONGRESS OF THE UNITED STATES OF AMERICA OPPOSING THE U.S. HOUSE BUDGET AND HOUSE WAYS AND MEANS COMMITTEES' PROPOSAL TO ELIMINATE OR RESTRICT LOCAL TAX DEDUCTIONS. WHEREAS, in order to come up with the $15 billion in new taxes proposed in the president's budget, the Speaker of the House Tom Foley and U. S. Representative Dan Rostenkowski have discussed a "potential revenue raisers' list" which includes a proposal to eliminate or restrict the state and local income or property tax deductions; and WHEREAS, this proposal to eliminate deductibility would strike at the basic principle of federalism that has been inherent in the income tax system since it was first enacted in 1913; and WHEREAS, deductibility has always been accepted as an essential constitutional principal to protect the integrity and fiscal independence of the separate states and local governments; and WHEREAS, repeal of deductibility would be a direct interference with the most fundamental of all state and local government rights, i.e., the power of each to raise revenue and finance services as it deems appropriate; and WHEREAS, this proposal only continues the squeeze on state and local governments at a time when we are attempting to finance increasing public service demands with fewer dollars from the federal government; and WHEREAS, grant-in-aid to state and local governments has been slashed by more than 50 percent over the last decade and major national studies show that counties have had to raise revenues to replace their lost federal dollars, and elimination or restriction of the deduction for this tax will make it even harder for counties to raise the necessary revenues; and WHEREAS, this is the largest single deduction taken by the nation's taxpayers,