CORPORATE WELFARE REFORM

WHEREAS, businesses and organizations often are granted subsidies and incentives by government entities in the form of tax breaks, grants and loans to generate economic development; and

WHEREAS, businesses and organizations that receive public subsidies often provide little measurable benefit to the public in return and often cost the taxpayer up to $100,000 for each job they create; and

WHEREAS, state and local economies often suffer when tax revenue is exchanged for a promise from companies of new jobs; and

WHEREAS, these subsidies often have no oversight or monitoring to determine if jobs actually are created or whether the created jobs meet minimum labor standards; and

WHEREAS, taxpayers have a right to know if their investment in job creation programs is working; and

WHEREAS, state and local government employees lose money when the tax base is diminished:

RESOLVED, that the AFT join the AFL-CIO in demanding "corporate welfare reform," including annual company-specific disclosure, money-back guarantees, "clawbacks" and other safeguards to make subsidies more transparent, accountable and effective; and

RESOLVED, that AFT assist locals in monitoring subsidy programs to protect the long-term interests of all members.