Sponsors (135)
Official title: To amend the Internal Revenue Code of 1986 to end the tax subsidy for employer efforts to influence their workers' exercise of their rights around labor organizations and engaging in collective action.
Introduced April 7, 2025 by Donald Norcross · Last progress April 7, 2025
The bill aims to reduce employer-funded anti-union campaigning and increase transparency/enforcement—making it easier for workers to organize—while imposing higher tax and reporting costs, legal uncertainty, and potential chill on routine employer-employee communications.
Workers (especially those trying to organize) would face less employer-funded interference in union votes, increasing the practical ability of employees and unions to organize and bargain.
Employers are financially discouraged from running costly anti-union persuasion campaigns, shifting resources toward wages, investment, or neutral workplace practices that can benefit employees and taxpayers.
The bill creates reporting and enforcement rules that improve transparency about employer spending on labor-organization activity and strengthen enforcement of labor law, which can support fairer bargaining outcomes and accountability.
Employers would face higher after-tax costs because anti-union and certain labor-related expenditures become nondeductible (including wages/G&A in some cases), which could be passed to consumers, reduce hiring, or compress wages.
New and heavier reporting requirements plus civil penalties (including per-employee escalators) raise compliance costs and expose employers to significant fines and enforcement risk.
Employers may curb or avoid lawful communications and training about workplace issues to reduce tax or penalty risk, which would leave employees with less information about policies, benefits, and rights.
Based on analysis of 3 sections of legislative text.
Denies federal tax deductions for employer spending to influence employees about unions, union elections, collective bargaining, or labor disputes.
Denies federal tax deductions for employer spending that attempts to influence employees about union organizing, collective bargaining, labor disputes, or labor elections. It adds definitions and exceptions to the Internal Revenue Code so amounts used for anti-union campaigns, meetings, trainings, and certain reported payments cannot be deducted as ordinary business expenses. The change narrows deductible business expenses tied to influencing workers and cross-references existing labor law definitions.