H.R. 2692: No Tax Breaks for Union Busting (NTBUB) Act
This bill, known as the No Tax Breaks for Union Busting (NTBUB) Act, aims to change the Internal Revenue Code to eliminate tax deductions for expenses that employers incur when they attempt to influence their employees regarding labor organizations and collective actions. The key points of the bill are as follows:
Purpose
The primary purpose of this legislation is to end tax incentives for employers that engage in practices meant to sway employees' decisions about forming or joining labor unions. The bill seeks to reinforce the rights of workers to freely choose their involvement in labor organizations without the influence of employer spending, which can interfere with collective bargaining processes.
Key Provisions
- Tax Deduction Changes: The bill amends Section 162 of the Internal Revenue Code to deny deductions for expenses associated with influencing employees regarding labor organization activities. This includes any actions that seek to shape employees' opinions on unions.
- Definition of Costs: The legislation specifies that costs associated with meetings, training, or any other activities aimed at influencing labor organization decisions will no longer be tax-deductible. Employers often spend significant amounts on consultants and other resources to influence their workforce, and this bill aims to curb that financial advantage.
- Reporting Requirements: Employers will be required to provide additional information in their tax returns regarding their attempts to influence employees about labor organizations. Failure to include this information could result in penalties.
- Penalties for Non-compliance: The bill establishes penalties for companies that fail to report the required information or misreport their expenses related to attempts to influence labor organization decisions, with penalties starting at $10,000.
- Exceptions to Deductions: The bill outlines certain exceptions where expenses can still be deducted, such as direct communications with employees’ representatives or expenses related to established grievance processes under collective bargaining agreements.
Findings
The bill includes findings that highlight issues related to employer interference in union activities and collective bargaining. It notes that a significant percentage of employers engage in unfair labor practices to influence labor organization elections and that those practices undermine the intent of U.S. labor law, which is to protect workers' rights to organize.
Implementation Timeline
If passed, the bill would take effect for taxable years beginning 240 days after its enactment. This gives the IRS and businesses time to adjust to the new regulations and reporting requirements.
Relevant Companies
- AMZN (Amazon): As a large employer known for its warehouse operations, Amazon potentially could be impacted due to the lobbying efforts it invests in influencing workers' attitudes toward unionization.
- GOOGL (Alphabet): Another major employer that could change its financial strategy regarding employee relations and union discussions.
- WMT (Walmart): As an employer with a history of union-related controversies, changes in tax deductions could significantly affect its budget for employee relations.
- TSLA (Tesla): Known for its employee dynamics and labor relations, Tesla may alter its spending in alignment with potential tax implications from this legislation.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
126 bill sponsors
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TrackDonald Norcross
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TrackAlma S. Adams
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TrackYassamin Ansari
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TrackBecca Balint
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TrackNanette Diaz Barragán
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TrackJoyce Beatty
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TrackSanford D. Bishop, Jr.
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TrackSuzanne Bonamici
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TrackBrendan F. Boyle
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TrackShontel M. Brown
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TrackJulia Brownley
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TrackNikki Budzinski
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TrackTroy A. Carter
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TrackGreg Casar
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TrackSean Casten
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TrackJudy Chu
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TrackGilbert Ray Cisneros, Jr.
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TrackYvette D. Clarke
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TrackEmanuel Cleaver
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TrackHerbert Conaway
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TrackGerald E. Connolly
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TrackAngie Craig
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TrackJason Crow
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TrackHenry Cuellar
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TrackSharice Davids
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TrackDanny K. Davis
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TrackDiana DeGette
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TrackRosa L. DeLauro
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TrackMark DeSaulnier
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TrackMadeleine Dean
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TrackSuzan K. DelBene
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TrackChristopher R. Deluzio
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TrackMaxine Dexter
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TrackDebbie Dingell
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TrackLloyd Doggett
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TrackSarah Elfreth
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TrackDwight Evans
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TrackLizzie Fletcher
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TrackBill Foster
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TrackLois Frankel
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TrackLaura Friedman
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TrackMaxwell Frost
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TrackJohn Garamendi
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TrackSylvia R. Garcia
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TrackRobert Garcia
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TrackJesús G. "Chuy" García
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TrackJared F. Golden
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TrackDaniel S. Goldman
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TrackJimmy Gomez
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TrackJosh Gottheimer
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TrackAl Green
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TrackJahana Hayes
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TrackSteven Horsford
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TrackChrissy Houlahan
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TrackVal T. Hoyle
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TrackPramila Jayapal
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TrackHenry C. "Hank" Johnson, Jr.
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TrackMarcy Kaptur
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TrackTimothy M. Kennedy
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TrackRo Khanna
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TrackRaja Krishnamoorthi
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TrackRick Larsen
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TrackJohn B. Larson
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TrackGeorge Latimer
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TrackSummer L. Lee
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TrackTed Lieu
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TrackStephen F. Lynch
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TrackSeth Magaziner
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TrackJohn Mannion
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TrackLucy McBath
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TrackSarah McBride
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TrackApril McClain Delaney
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TrackBetty McCollum
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TrackKristen McDonald Rivet
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TrackMorgan McGarvey
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TrackJames P. McGovern
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TrackLaMonica McIver
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TrackRobert Menendez
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TrackGrace Meng
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TrackKweisi Mfume
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TrackKelly Morrison
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TrackSeth Moulton
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TrackFrank J. Mrvan
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TrackKevin Mullin
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TrackJerrold Nadler
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TrackJoe Neguse
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TrackEleanor Holmes Norton
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TrackAlexandria Ocasio-Cortez
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TrackJohnny Olszewski
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TrackIlhan Omar
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TrackFrank Pallone, Jr.
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TrackJimmy Panetta
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TrackChellie Pingree
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TrackMark Pocan
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TrackMike Quigley
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TrackDelia C. Ramirez
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TrackPatrick Ryan
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TrackMary Gay Scanlon
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TrackJanice D. Schakowsky
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TrackBradley Scott Schneider
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TrackKim Schrier
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TrackBrad Sherman
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TrackMikie Sherrill
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TrackAdam Smith
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TrackEric Sorensen
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TrackDarren Soto
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TrackMelanie A. Stansbury
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TrackHaley M. Stevens
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TrackThomas R. Suozzi
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TrackEmilia Strong Sykes
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TrackLinda T. Sánchez
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TrackMark Takano
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TrackShri Thanedar
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TrackDina Titus
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TrackRashida Tlaib
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TrackJill N. Tokuda
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TrackPaul Tonko
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TrackRitchie Torres
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TrackLori Trahan
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TrackLauren Underwood
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TrackMarc A. Veasey
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TrackNydia M. Velázquez
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TrackDebbie Wasserman Schultz
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TrackMaxine Waters
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TrackNikema Williams
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TrackFrederica S. Wilson
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Actions
2 actions
| Date | Action |
|---|---|
| Apr. 07, 2025 | Introduced in House |
| Apr. 07, 2025 | Referred to the House Committee on Ways and Means. |
Corporate Lobbying
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