Salt Lake Telegram | 1940-12-09 | Page 8 | McConkie Raps Move to Establish Federal Tax on City Bonds

I Reaps Raps Move to Establish Federal Tax on City Bonds fonds A federal tax on municipal bonds such as is believed will be proposed proposed proposed pro pro- posed at the next session of congress congress congress con con- gress would definitely handicap Salt Lake City in view of its plan to hike the 1941 tax levy to produce produce produce pro pro- duce money for national defense That was pointed out Monday in a telegram sent by Finance Commissioner Commissioner Commissioner Com Com- missioner Oscar W. W McConkle McConkie to Paul V. V Betters executive secretary of the United States conference of mayors Washington D. D C. C We strongly resist such a plan stated Mr McConkie in his dual capacity of finance commissioner and acting chairman of the last regular city commission meeting A message from frol Mr Betters pointed out that thata a plan to reassert the legislation overwhelmingly defeated defeated defeated de de- in the senate last September now is shaping and will probably be laid before congress in January Such taxation would automatically automatically cally increase rate interests on municipal municipal municipal mu mu- bonds from from 5 3 o ol of one percent percent per percent cent to 1 per cent this financial burden simply being added to city real estate taxes wired Mr Bet Bet- The proposed legislation is viewed by cities generally as unjust unjust unjust un I just and in some quarters as unconstitutional unconstitutional unconstitutional un constitutional added the Betters I telegram Salt Lake City was in the column column column col col- I of opposing cities when the I measure was defeated earl earU year Ii