WHEREAS:

The so-called “Tax Cuts and Jobs Act,” President Trump signed into law in December 2017, exacerbates current wealth inequality through unneeded, trillion-dollar tax giveaways to the top earning 1 percent and large profitable corporations; reduces tax rates and creates new tax breaks for millionaires and billionaires and encourages multinational conglomerates to send U.S. jobs and profits out of America to lower tax countries and tax havens; and in 2027, 83 percent of the law’s tax benefits will go to the top earning 1 percent; and

WHEREAS:

Republican congressional leaders have announced plans to pay for these tax giveaways by cutting Social Security, Medicare, Medicaid, education and other vital social services; and

WHEREAS:

At least 12 million Americans will lose their health coverage annually beginning after 2020 because the law repealed the individual mandate for health care which will contribute towards making health benefits increasingly unaffordable; and

WHEREAS:

The law could hamper the ability of state and local governments to increase taxes by capping the more than 100-year-old federal itemized tax deduction for state and local government taxes, including income tax, sales tax, and real estate and property tax at $10,000.  This will make it more difficult to finance and deliver public education, health care, child care, and other vital public services; and

WHEREAS:

For most low-income and working families, the law’s tax benefits are relatively small and short-term with a 2025 expiration date while the tax cuts for corporations are permanent. Beginning in 2026, average taxes on tens of millions of middle class households will increase; and

WHEREAS:

Just Capital’s analysis of 121 Russell 1,000 companies found that 57 percent of tax savings will go to shareholders, compared to 20 percent directed to job creation and capital investment and only 6 percent to workers.

THEREFORE BE IT RESOLVED:

That AFSCME will continue to work with coalition partners to highlight the harmful effects of the recent tax cuts, including the trillions of dollars lost to the U.S. Treasury; and the announced intention of congressional leaders to pay for these tax cuts by reducing Social Security, Medicare and Medicaid benefits, along with other vital public services, that middle class and low-income families depend on; and

BE IT FURTHER RESOLVED:

That AFSCME will continue to demand the U.S. Congress to repeal these harmful tax cuts, and enact progressive tax laws that close loopholes for the wealthy and corporations to ensure they pay their fair share, and

BE IT FINALLY RESOLVED:

That AFSCME will support efforts to eliminate the cap on the tax deductibility of state and local taxes and will support efforts to undo the damage done to the Affordable Care Act through the tax bill.

SUBMITTED BY:
Judy Wahlberg, President and Delegate
Mary Falk, Secretary and Delegate
AFSCME Council 5
Minnesota