Summary

Disallows federal income tax deductions for employer expenditures aimed at influencing their own employees about labor organizations, union elections, collective bargaining, or other labor organization activities, while creating definitions and several listed exceptions. The change amends Internal Revenue Code section 162(e) to treat such influence-related amounts (including certain wages, general & administrative costs, and amounts reportable under labor law) as nondeductible and gives the Treasury authority to identify covered activities and apply specified exceptions.

• Makes employer expenditures to influence their own employees about unions and related activities nondeductible under IRC section 162(e).
• Adds detailed statutory definitions for "labor organization," "labor organization activity," and related terms by cross-reference to labor statutes.
• Treats wages, general & administrative costs, and amounts reportable under labor law as potentially covered expenses when tied to influence activities.
• Sets out eight explicit exceptions that preserve deductibility for certain communications, negotiations, and other specified categories of employer-employee interactions.
• Gives the Secretary of the Treasury authority to identify additional related activities that fall within the definition of "labor organization activity."
• Cites data and findings asserting substantial employer interference in union organizing and significant employer spending on outside consultants.
• Narrows deductible trade-or-business expenses, which may increase taxable income for employers engaging in prohibited influence activities.
• Targets employer behavior (spending to influence employee organizing) rather than directly changing labor-law remedies or standards.