FEDERAL VALUE ADDED TAX (VAT)

WHEREAS, a Value Added Tax is simply a sales tax with a new name, regressive in nature, imposing heavy burdens on those least able to bear them; and

WHEREAS, a Value Added Tax was proposed in order to reduce the corporate income tax, and has been steadfastly and vigorously opposed by organized labor from its inception; and

WHEREAS, inflation and unemployment have been very hard blows to people depending on their work as their sole or major source of income; and

WHEREAS, VAT would be another serious blow against their purchasing power, which is essential to continued production and employment, and would threaten the very existence of many retired workers:

RESOLVED, that the AFT, in line with the rest of the labor movement, oppose a clearly Value Added Tax; and

RESOLVED, that the AFT inform all members of Congress of its opposition to VAT; and

RESOLVED, that this convention call upon all AFT affiliates to make unmistakably clear to their respective members of Congress their absolute opposition to any VAT, both by direct messages and by memorialization of Congress by state and local legislative bodies.