Sponsors (132)
The bill reduces employer incentives and increases transparency around anti-union spending—strengthening worker organizing rights—but does so by eliminating deductions and adding reporting and penalties that raise business costs, create legal uncertainty, and risk chilling ordinary workplace communications.
Unionizing workers and their unions will face less employer-funded anti-union persuasion because employer expenditures to influence union drives would no longer be tax-deductible, reducing firms' financial incentive to run anti-union campaigns.
Taxpayers will no longer indirectly subsidize employer spending aimed at influencing union activity because those expenditures would not be deductible.
Workers, unions, and the public will gain greater visibility into employer spending on labor-influence activities due to required detailed reporting (dates, amounts, disclosures).
Small businesses and other employers will lose deductions for labor-influence communications, increasing their tax bills and likely resulting in higher prices, reduced hiring, or lower pay that can harm workers and consumers.
Ambiguous definitions of what 'attempts to influence' include and rules delegated to the Secretary create legal uncertainty that will raise compliance costs and invite litigation for employers and the IRS.
New detailed reporting requirements combined with steep minimum penalties (e.g., $10,000 or per-FTE fines) impose substantial administrative burdens and expose employers—especially smaller firms—to the risk of large fines.
Based on analysis of 3 sections of legislative text.
Denies federal tax deductions for employer spending that attempts to influence employees about unions, elections, strikes, or collective actions, with limited exceptions.
Introduced April 7, 2025 by Donald Norcross · Last progress April 7, 2025
Denies a federal business tax deduction for employer spending that attempts to influence employees about unions, union elections, strikes, collective actions, or other labor-organization activity. It rewrites the tax-code rule that disallows deductions for election-influencing expenses to explicitly cover amounts paid directly or indirectly to influence employees’ labor choices, while carving out specified exceptions for certain labor-management communications. The bill defines key terms by reference to existing labor law (NLRA and Railway Labor Act), treats wages and administrative costs used to influence employees as nondeductible, and adds a placeholder for special rules. The change aims to stop taxpayers from using tax deductions to subsidize anti-union campaigns and related consulting expenditures.