Federal and state tax cuts have dealt a severe blow to the ability of state governments to provide services. Throughout the 1990s, revenues grew 29 percent after adjusting for population and inflation. The prosperity opened the door for important improvements in the quality of government services. Had states taken that step, they could have extended the reach of medical care to those who are unprotected, expanded education programs that help children achieve, protected our environment, and begun to repair and improve aging transportation systems. Instead, states responded with limited improvements while opting for $28 billion in tax cuts in six straight years.

Now the economy has shifted, states are failing to meet revenue expectations and are cutting programs and laying off workers to rebalance their budgets. Federal tax cuts are compounding the problem since one quarter of every dollar states spend providing services comes from federal sources. The federal government is hard-pressed to fund its own programs, let alone fill gaps left by state tax cuts.

AFT Public Employees is a strong advocate for adequate federal funds for state programs and supports the passing of tax reform legislation that will allow states to collect tax on electronic commerce. Our union advocates for better-regulated corporate tax incentives and supports political candidates and legislative initiatives that strive for adequate and fair tax and revenue policies in the states.