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119-s-1310119th CongressWALLET

No Tax Breaks for Union Busting (NTBUB) Act

Sponsored By: Senator 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.

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  • 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.

Sponsors & CoSponsors

Sponsor

Luján, Ben Ray [D-NM]

NM • D

Cosponsors

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 4/4/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 4/4/2025

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 4/4/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 4/4/2025

  • Sen. Cortez Masto, Catherine [D-NV]

    NV • D

    Sponsored 4/4/2025

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 4/4/2025

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 4/4/2025

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 4/4/2025

  • Sen. Gallego, Ruben [D-AZ]

    AZ • D

    Sponsored 4/4/2025

  • Sen. Heinrich, Martin [D-NM]

    NM • D

    Sponsored 4/4/2025

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 4/4/2025

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 4/4/2025

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 4/4/2025

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 4/4/2025

  • Sen. Murphy, Christopher [D-CT]

    CT • D

    Sponsored 4/4/2025

  • Sen. Murray, Patty [D-WA]

    WA • D

    Sponsored 4/4/2025

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 4/4/2025

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 4/4/2025

  • Sen. Rosen, Jacky [D-NV]

    NV • D

    Sponsored 4/4/2025

  • Sen. Sanders, Bernard [I-VT]

    VT • I

    Sponsored 4/4/2025

  • Sen. Schatz, Brian [D-HI]

    HI • D

    Sponsored 4/4/2025

  • Sen. Schiff, Adam B. [D-CA]

    CA • D

    Sponsored 4/4/2025

  • Sen. Slotkin, Elissa [D-MI]

    MI • D

    Sponsored 4/4/2025

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 4/4/2025

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 4/4/2025

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 4/4/2025

  • Sen. Wyden, Ron [D-OR]

    OR • D

    Sponsored 4/4/2025

  • Sen. Welch, Peter [D-VT]

    VT • D

    Sponsored 4/10/2025

  • Sen. Blunt Rochester, Lisa [D-DE]

    DE • D

    Sponsored 4/29/2025

Roll Call Votes

No roll call votes available for this bill.

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