Resolution No. 5049413
RESOLUTION NO. 5049
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
OPPOSING FEDERAL PAYROLL TAX PROPOSAL TO MANDATE
STATE AND LOCAL GOVERNMENT PARTICIPATION IN SOCIAL SECURITY
WHEREAS, the President will propose early next year a plan to reform the Social Security
program; and
WHEREAS, that proposal may require mandatory participation of the City of Cypress in Social
Security; and
WHEREAS, the City of Cypress would become a Federal taxpayer, compelled to remit 6.2
percent of the salary or wages of newly hired workers; and
WHEREAS, this constitutes an unfunded Federal mandate imposed on the City of Cypress and
other agencies; and
WHEREAS, the new tax that the City of Cypress would be required to pay the Federal
government would cost Cypress $1,750,000 over 10 years; and
WHEREAS, in order to pay this new Federal tax, the City of Cypress may have no choice but to
reduce services and programs; and
WHEREAS, in addition to these reduced services, new and /or higher fees may be required in
order for the City of Cypress to pay the tax; and
WHEREAS, such new fees would constitute a double tax on the citizens of Cypress because
not only are they paying the Social Security tax on their own salaries and wages, but also they would
be funding the new Federal tax on the City of Cypress; and
WHEREAS, this new tax on the City of Cypress is a shift of Federal government responsibilities
to our communities for which there will be no benefit paid for more than a generation; and
WHEREAS, the President is encouraging a national dialogue on how to reform the Social
Security program and is seeking input from all parts of the nation; and
WHEREAS, Congressman Royce, our Representative in Congress, has always been open to
our views and concerns.
NOW, THEREFORE, BE IT RESOLVED that the City of Cypress hereby pledges to make it
known to the President and Congressman Royce its opposition to any measure that would impose an
unfunded Federal mandate on the City of Cypress in the form of a new Federal tax on salaries and
wages paid to newly hired workers.
PASSED AND ADOPTED by the City Council of the City of Cypress at a regular
meeting held on the 11th day of January 1999.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
414
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, LILLIAN M. HAINA, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the
foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 11th
day of January 1999; by the following roll call vote:
AYES: 5 COUNCIL MEMBERS: McCoy, McGill, Piercy, Sondhi
NOES: 0 COUNCIL MEMBERS: None and Keenan
ABSENT: 0 COUNCIL MEMBERS: None
dtiet.--- OA .
CITY i
ERK OF THE CITY OF CYPRESS