Skip to main content
Resolutions & Amendments

27th International Convention - Chicago, IL (1986)

Federal Tax Reform

Resolution No. 183
27th International Convention
June 23-27, 1986
Chicago, IL


The Congress is now considering a major restructuring of the federal tax system; and


There is a pressing need for tax reform in the country. As a result of both long-existing tax loopholes and new ones enacted during President Reagan's first term, many profitable corporations and wealthy Americans are not contributing their fair share of federal taxes. In contrast, the tax burden on middle-income and poor Americans has risen sharply in recent years.


The Reagan Administration and other right-wing forces have seized on the real need for tax reform as an excuse to further elements of their own conservative agenda. Their insistence on the elimination of the deductibility of state and local taxes, the taxation of employer-provided workplace benefits and greater tax incentives for business are all examples.


The House of Representatives in December 1985 passed the Tax Reform bill (HR 3838) that redressed many major problems with the tax system and avoided the new inequities advocated by the Administration. That bill —


The subsequent passage of the Gramm-Rudman deficit cutting mechanism has made the need for new revenues to maintain vital federal programs and services even more urgent. The major source of those new revenues must be from closing corporate loopholes and enacting a minimum tax.


That AFSCME urge Congress to make the federal income tax system fairer and more progressive, as well as raise additional, adequate revenues to meet domestic spending needs, by actions to:

  1. Repeal corporate loopholes such as the Accelerated Cost Recovery System, the investment tax credit, the treatment of foreign income and operations, and the special treatment for defense contractors and the oil industry.
  2. Enact a stiff, comprehensive minimum tax on corporations and high income individuals,
  3. Make the individual income tax fairer and more progressive by removing persons below the poverty level from the tax rolls, enacting moderate income tax relief, curbing loopholes such as capital gains and estate and gift taxation that benefit only the wealthy, and otherwise limiting rate reduction to those income groups that were adversely affected by the 1981 tax changes; and
  4. Use the additional revenues generated from the corporations and the wealthy paying a fair share to meet domestic spending needs and reduce the federal deficit.


International Executive Board