Congress moves to strip tax breaks for union-busting campaigns
S. 1310 — No Tax Breaks for Union Busting (NTBUB) Act · Filed by Ben Luján (D-NM) · 29 cosponsors · Introduced Apr 4, 2025 · Referred to committee
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What it does
This bill denies federal tax deductions for employer spending intended to influence workers' decisions about unionization and collective bargaining. It treats such spending like political campaign spending—lawful but not subsidized by taxpayers. Employers must report these activities to the IRS and face penalties for non-compliance. Workers and unions benefit by reducing employer financial advantage in organizing campaigns; employers lose a tax subsidy for anti-union activities.
Why we flagged it
The bill is fundamentally a tax-code amendment that removes a deduction for a specific category of employer spending. It is not a ban on employer speech or organizing activity—it is a tax subsidy removal aligned with existing policy (political spending is also non-deductible). The mechanism is straightforward: deny deduction + require reporting + impose penalties for non-disclosure.
What the text implies
- Employers may shift anti-union spending to non-deductible categories or structure it as capital expenditure, creating compliance complexity and potential IRS disputes over what counts as 'attempting to influence.'
- The bill's broad definition of 'labor organization activity' and 'collective action' could capture routine HR communications about workplace policies if they touch on union-related topics, requiring careful documentation.
The full analysis lists 4 implications of this text.
Who stands to gain
labor unions; workers seeking to organize