No Tax Breaks for Union Busting (NTBUB) Act
Sponsored By: Senator Sen. Luján, Ben Ray [D-NM]
Introduced
Summary
Ending tax breaks for employer anti-union spending. It would bar tax deductions for employer efforts to influence employees about labor organizations or collective action and add new reporting rules and penalties to enforce that change.
Show full summary
- Workers and unions: Removes the tax deduction for employer spending aimed at shaping employees’ opinions or actions about unions, union elections, collective action, or labor disputes.
- Employers and payors: Disallows deductions under IRC section 162(e)(1) for a widened set of activities, including costs tied to NLRB complaints, settlements from NLRB investigations without a complaint, court findings under the Railway Labor Act, and meetings or trainings that discuss labor organization activity. It also exempts specific communications and union-run amounts listed in the bill.
- Tax administration and compliance: Requires employers and third parties to report dates, activity categories, amounts, and Labor-Management Reporting and Disclosure Act disclosures. It creates a penalty of the greater of $10,000 or $1,000 per full-time equivalent, adds post-90-day penalties in 30-day increments up to $100,000, and directs the Secretary to issue guidance or regulations within 240 days. The changes apply to amounts paid or incurred in taxable years beginning after 240 days from enactment.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 3 costs, 0 mixed.
No deduction for union-influence spending
If enacted, businesses could not deduct money spent to influence their employees about unions or union activity. This would cover wages and other costs tied to meetings, trainings, actions that lead to NLRB complaints or related settlements, and amounts reportable under the Labor-Management Reporting and Disclosure Act. The bill lists exceptions, for example communications with designated employee representatives, required shareholder disclosures, voluntary recognition consultations, grievance procedures under a collective-bargaining agreement, amounts paid by labor organizations, and legally required employee postings. The rule would apply to amounts in tax years starting after 240 days from enactment.
New penalty for missing labor reports
If enacted, a taxpayer who made covered union-influence expenditures must file specified information with its tax return. Failure triggers a base penalty equal to the greater of $10,000 or $1,000 per full-time-equivalent employee. If the failure continues more than 90 days after IRS notice, extra penalties equal to the base amount apply every 30 days, capped in total added penalties at $100,000. Required items include activity dates, activity type (aa, bb, or cc), amounts paid or incurred, and any LMRA disclosures. A reasonable-cause exception is available. The rule applies to tax years starting after 240 days from enactment.
New reporting for third-party union work
If enacted, any person who conducts covered union-influence activities for another would have to file a return with the IRS. The return must identify who hired them, the dates, whether the activity was type aa, bb, or cc, amounts paid or incurred, and other details the IRS requires. Penalties for failure to file would apply under the tax code. This rule applies to amounts in tax years starting after 240 days from enactment.
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Sponsors & CoSponsors
Sponsor
Sen. Luján, Ben Ray [D-NM]
NM • D
Cosponsors
Tina Smith
MN • D
Sponsored 4/4/2025
Cory Booker
NJ • D
Sponsored 4/4/2025
Tammy Baldwin
WI • D
Sponsored 4/4/2025
Richard Blumenthal
CT • D
Sponsored 4/4/2025
Catherine Cortez Masto
NV • D
Sponsored 4/4/2025
Tammy Duckworth
IL • D
Sponsored 4/4/2025
Richard Durbin
IL • D
Sponsored 4/4/2025
John Fetterman
PA • D
Sponsored 4/4/2025
Ruben Gallego
AZ • D
Sponsored 4/4/2025
Martin Heinrich
NM • D
Sponsored 4/4/2025
Mazie Hirono
HI • D
Sponsored 4/4/2025
Amy Klobuchar
MN • D
Sponsored 4/4/2025
Edward Markey
MA • D
Sponsored 4/4/2025
Jeff Merkley
OR • D
Sponsored 4/4/2025
Christopher Murphy
CT • D
Sponsored 4/4/2025
Patty Murray
WA • D
Sponsored 4/4/2025
Alex Padilla
CA • D
Sponsored 4/4/2025
John Reed
RI • D
Sponsored 4/4/2025
Jacky Rosen
NV • D
Sponsored 4/4/2025
Bernie Sanders
VT • I
Sponsored 4/4/2025
Brian Schatz
HI • D
Sponsored 4/4/2025
Adam Schiff
CA • D
Sponsored 4/4/2025
Elissa Slotkin
MI • D
Sponsored 4/4/2025
Chris Van Hollen
MD • D
Sponsored 4/4/2025
Elizabeth Warren
MA • D
Sponsored 4/4/2025
Sheldon Whitehouse
RI • D
Sponsored 4/4/2025
Ron Wyden
OR • D
Sponsored 4/4/2025
Peter Welch
VT • D
Sponsored 4/10/2025
Lisa Blunt Rochester
DE • D
Sponsored 4/29/2025
Roll Call Votes
No roll call votes available for this bill.
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