WHEREAS:
The trend of state and local governments to offer increasingly large tax incentives for economic development has not abated, but has rather escalated in many places; and
WHEREAS:
The tax incentives that are being offered range from cuts in the corporate tax rate to special sales tax exemptions, from property tax abatements, to even reductions in the top rate of the personal income tax, all in an effort to allegedly improve the state's "business climate;" and
WHEREAS:
Such tax incentives are inefficient, costly and seldom evaluated to see what positive effect, if any, they have delivered to the state's economy. State and local governments offer such incentives despite any evidence that they actually increase the number of good paying jobs or improve the quality of life for working class citizens; and
WHEREAS:
The willingness to offer tax breaks that drain state revenues for other more productive uses does not respect party lines but is rather blindly embraced by politicians of all stripes, particularly in election years when they believe such "quick fixes" are necessary to garner votes. Such politicians are particularly fond of promising tax breaks for businesses given the recent economic rebound that many states are experiencing, giving politicians the excuse of improved revenue situations as a way to pay for these tax breaks in the short run without considering the longer-term revenue implications on state coffers; and
WHEREAS:
The recent improvement in state economies and revenues is essential to shore back up the weak fiscal conditions of most state and local governments and should not be used as an excuse to cut taxes without replacing the lost revenues.
THEREFORE BE IT RESOLVED:
That AFSCME recommit itself to opposing tax breaks in the name of economic development, exposing the whole approach as simply a way to steal jobs from somewhere else, while doing nothing to create new jobs; and
BE IT FURTHER RESOLVED:
That AFSCME work to make the costs of such business climate blackmail schemes known, through such means as calculating the cost per job of any tax incentive package and requiring disclosure of state tax breaks received by corporations; and
BE IT FURTHER RESOLVED:
That AFSCME promote strategies that hold businesses accountable for any tax breaks that they receive, such as promoting model legislation and contract language that would beholden the recipient of tax breaks to be responsible and actually produce high paying union positions; and
BE IT FURTHER RESOLVED:
That AFSCME link the issues of tax breaks for economic development with the issue of "redesigning government" in such a way that AFSCME becomes the champion of taxpayers' rights and sees that citizens are getting their money's worth for their taxes, rather than wasting them on illusory corporate give-aways; and
BE IT FURTHER RESOLVED:
That AFSCME consider candidates' positions, including this issue, when endorsing candidates for political office, since it so directly affects the ability of the government to truly promote a sound economy and solid revenues for spending on programs that matter directly to AFSCME; and
BE IT FURTHER RESOLVED:
That AFSCME work in coalitions with other groups that also strive to hold businesses accountable as good corporate citizens, making linkages with such organizations as environmental and civil rights groups to make the case that government should not be subsidizing businesses that pollute or violate other laws; and
BE IT FINALLY RESOLVED:
That AFSCME endorses positive approaches to economic development through improvements in the quality and availability of quality public services, strong programs in education and training and provision and maintenance of needed infrastructure.
SUBMITTED BY:
Michael D. Murphy, President and Delegate
Robert W Lyons, Executive Director and Delegate
AFSCME Council 40
Wisconsin