Fighting for Tax Justice for American Workers by Addressing the Tax Gap

WHEREAS, our system of taxation provides revenue to fund government services, but corporate and individual tax evasion weakens that system and leads to an unequal burden in national and state tax systems as a whole; and unjustly results in a larger burden on low-wage and middle-class workers to “foot the bill”; and

WHEREAS, in 2026, history suggests that ultra-wealthy Americans and corporations will pay hundreds of billions of dollars less in taxes than they should. This “tax gap”—the difference between the taxes legally owed to the government and the amount paid to the government—is caused by taxpayers and corporations that should file but do not, who underreport their income, and who do not pay in a timely manner; and

WHEREAS, many businesses collect sales and other special taxes on behalf of state and local governments and fail to remit the tax collected to the government, further increasing the tax gap in a state; and

WHEREAS, staffing cuts and hiring challenges at the federal Internal Revenue Service and at state tax departments increase tax gaps and lower government capacity to service the taxpayers, answer taxpayer questions, conduct audits and collect unpaid taxes; and

WHEREAS, addressing the tax gap could provide the revenue that states need to avoid tax increases on working class Americans and cuts to core public services; and

WHEREAS, the Working Americans’ Tax Cut Act aims to provide tax relief for low and middle-income Americans: 

RESOLVED, that the AFT will support increased enforcement of existing tax laws to reduce the tax gap and address the millionaires, billionaires, corporations and others who flagrantly flaunt their responsibility to contribute to our democracy; and

RESOLVED, that the AFT will work with our state affiliates to draft model legislation to be introduced in state legislatures to expose and define the tax gap in each state; and

RESOLVED, that the AFT will continue to work with community partners to ensure a strong, fully funded public sector that works for the common good of all; and

RESOLVED, that the AFT will advocate for the Working Americans’ Tax Cut Act which supports a functional and fair tax system at the federal and state levels.

Adopted July 19, 2026