Sponsors (30)
The bill reduces employer incentives and public subsidy for anti‑union influence and increases spending transparency, but does so by restricting tax deductions and adding reporting/penalty rules that raise costs, compliance risk, and could chill legitimate employer communications.
Workers and unions: reduces employers' financial incentives and capacity to run anti-union campaigns by limiting tax deductions for expenditures that influence collective-bargaining votes, making it easier for workers to organize.
Taxpayers: stops subsidizing employer anti-union consulting because those expenses could become nondeductible, reducing implicit public support for anti-union influence.
Tax system/transparency: increases reporting to the IRS about employer expenditures on labor-organization–related activities, creating more visibility into workplace spending.
Small businesses, consumers, and employees: increases after-tax costs for employers because previously deductible communications and consultant expenses may become nondeductible, costs that could be passed on to consumers or reduce wages/hiring.
Employers, third-party filers, and taxpayers: creates significant new compliance burdens, ambiguous rules about what 'influencing' is, extensive recordkeeping/reporting requirements, and large monetary penalties, increasing litigation and risk of technical violations.
Employees and employers: may chill routine, safety-related, or voluntary workplace communications because uncertainty about what counts as 'attempting to influence' could discourage employers from providing information to workers.
Based on analysis of 3 sections of legislative text.
Denies federal tax deductions for employer spending that attempts to influence employees about unions, union elections, disputes, or collective actions, with specified definitions and exceptions.
Introduced April 4, 2025 by Ben Ray Luján · Last progress April 4, 2025
Denies businesses a federal tax deduction for spending that attempts to influence their employees about unions, union elections, or collective-bargaining activities. The bill adds new definitions of "labor organization activity" and related terms to the tax code, lists what employer expenses count as attempts to influence employees, and creates several exceptions for certain communications and programs.