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S. 1310: No Tax Breaks for Union Busting (NTBUB) Act

The "No Tax Breaks for Union Busting Act" (NTBUB) aims to amend the Internal Revenue Code to end tax deductions for businesses that attempt to influence their employees regarding labor organizations and collective bargaining. The bill seeks to align the treatment of such employer spending with similar political expenditures, which are not tax-deductible.

Key Provisions

Denial of Tax Deductions: The bill specifies that expenditures made by companies to influence employee decisions about forming or joining labor organizations will not be eligible for tax deductions.
Influence on Labor Organizations: It defines "attempts to influence employees" broadly, including any spending aimed at swaying employee opinions on labor organizations or associated activities.
Reporting Requirements: Companies engaging in these influence activities must report expenditures on their tax returns, and failure to do so may result in penalties.
Definitions: The bill lays out definitions for labor organizations and related activities, which include labor disputes, collective actions, and elections related to labor organizations.
Exceptions to Deductions: Certain types of communications and consultations, such as those directly with employee representatives or for legally mandated information sharing, will not be subject to this denial of deductions.
Penalties for Non-compliance: Employers who do not comply with the reporting requirements may face penalties, which could be substantial depending on the size of the company.

Findings

The bill states that, despite existing laws protecting workers' rights to organize, many companies frequently engage in practices that can interfere with this right. These practices may include unfair labor practices, intimidation, and heavy spending on consulting services to influence employee choices regarding unionization. The bill's authors argue that this culture of influence undermines the goals of collective bargaining and worker representation.