No Tax Breaks for Union Busting (NTBUB) Act
No Tax Breaks for Union Busting (NTBUB) Act
Plain Language Summary
# Summary of the No Tax Breaks for Union Busting Act (HR 2692) **What the bill would do:** This bill would prevent companies from deducting certain business expenses from their taxes if those expenses are used to discourage employees from joining or supporting labor unions. Currently, companies can deduct these "union-busting" costs as ordinary business expenses, similar to other operational costs. The bill also requires employers to report these expenses to the IRS and imposes penalties for companies that don't comply with the new reporting requirements. **Who it affects:** This bill would primarily affect employers—especially larger companies with anti-union campaigns—and the IRS, which would need to track these new reports. It could indirectly benefit union organizing efforts by making anti-union activities more costly for employers.
Employees and unions could also be affected, as the bill may influence how aggressively companies oppose unionization. **Key provisions:** The bill covers a broad range of anti-union expenses, including wages paid to managers conducting anti-union meetings, costs of mandatory employee trainings where unions are discussed, and settlement payments related to unfair labor practice complaints. There are some exceptions to these rules. The bill is currently in committee and has not been voted on by the full House.
CRS Official Summary
No Tax Breaks for Union Busting (NTBUB) ActThis bill excludes from the tax deduction for ordinary and necessary business expenses amounts paid or incurred to influence employees with respect to labor organizations or labor organization activities. The bill also imposes information reporting requirements related to such expenses and imposes penalties for failure to comply. Under the bill, amounts paid to influence employees with respect to labor organizations include amounts paid (including wages and other costs) in connection with an action that results in a complaint or settlement related to an unfair labor practice or a finding of interference, influence, or coercion related to railway employees’ rights to organize and bargain collectively;for any meeting or training attended by employees and at which labor organizations are discussed; andthat require certain employer disclosures and financial reporting.(Some exceptions apply.) The bill requires employers to file a return reporting certain information related to expenses paid to influence employees with respect to labor organizations and imposes a penalty for noncompliance. The amount of the penalty is the greater of (1) $10,000, or (2) $1,000 multiplied by the number full-time equivalent employees. Additional penalties apply for violations that continue for more than 90 days. The bill also imposes information reporting requirements on persons conducting activities on behalf of another person to influence employees with respect to labor organizations.The bill allows certain penalties for noncompliance with the reporting requirements to be waived if noncompliance is due to reasonable cause and not willful neglect.
Latest Action
Referred to the House Committee on Ways and Means.