No Tax Breaks for Union Busting (NTBUB) Act
This bill denies employers a tax deduction for any expenditures incurred for attempting to influence their employees with respect to labor organizations or labor organization activities, such as elections, labor disputes, and collective actions.
The bill requires employers to report on their attempts to influence their employees with respect to labor organizations and their activities.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8448 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8448
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 20, 2022
Mr. Norcross (for himself, Mr. Schiff, Mr. Smith of Washington, Mr.
Espaillat, Mr. Green of Texas, Mr. Lowenthal, Ms. Ocasio-Cortez, Mr.
Carson, Mr. Kim of New Jersey, Mr. Levin of Michigan, Ms. Kuster, Mr.
Brown of Maryland, Ms. Pressley, Ms. Lee of California, Ms. McCollum,
Mrs. Watson Coleman, Mr. Sherman, Mrs. Lawrence, Mr. Fitzpatrick, Mrs.
Carolyn B. Maloney of New York, Ms. Pingree, Mrs. Axne, Mr. Lamb, Mr.
Danny K. Davis of Illinois, Mr. Soto, Mr. Cicilline, Mrs. Dingell, Ms.
Titus, Mr. Payne, Mr. Evans, Ms. Norton, Ms. Slotkin, Mr. Mrvan, Mr.
Pallone, Ms. Wilson of Florida, Mr. Connolly, Mrs. Napolitano, Ms.
Meng, Ms. Stevens, Ms. Omar, Mr. Bowman, Mr. McGovern, Mr. Raskin, Ms.
Schakowsky, Mr. Golden, Mr. Crow, Mr. Nadler, Mr. Garcia of Illinois,
Mr. Gomez, Mr. Panetta, Mr. Courtney, Mr. Neguse, Mr. Larson of
Connecticut, Mr. Garamendi, Mr. Sarbanes, Mrs. Beatty, Mr. Vargas, Ms.
Chu, Ms. Bass, Ms. Porter, Ms. Underwood, Ms. Blunt Rochester, Mr.
Doggett, Mrs. Trahan, Ms. Dean, Ms. Newman, Mr. DeSaulnier, Mr. Pocan,
Mr. Takano, Ms. Scanlon, Ms. Stansbury, Mr. Michael F. Doyle of
Pennsylvania, Ms. Sherrill, Mr. Jones, Ms. Barragan, Mr. Tonko, Mr.
Aguilar, Mr. Welch, Ms. Jayapal, Mr. Krishnamoorthi, Ms. Tlaib, Ms.
Velazquez, Mr. Grijalva, Mr. Larsen of Washington, Mr. Khanna, Ms.
DeLauro, Mr. Gallego, Mr. Casten, Mrs. Cherfilus-McCormick, Ms. Jackson
Lee, Ms. Brown of Ohio, Mr. Lynch, Mr. Cohen, Ms. Wild, Ms. Bonamici,
Ms. Garcia of Texas, Mr. Suozzi, Mr. Ryan, Mr. Malinowski, Mr.
Cardenas, Mrs. Demings, Ms. Clarke of New York, and Ms. Lofgren)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Tax Breaks for Union Busting
(NTBUB) Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The National Labor Relations Act (29 U.S.C. 151 et
seq.) declares that it is the right of employees to form, join,
or assist labor organizations.
(2) The National Labor Relations Act further declares that
it is ``the policy of the United States to eliminate the causes
of certain substantial obstructions to the free flow of
commerce and to mitigate and eliminate these obstructions when
they have occurred by encouraging the practice and procedure of
collective bargaining and by protecting the exercise by workers
of full freedom of association, self-organization, and
designation of representatives of their own choosing . . .''.
(3) Despite Congress' intention to give workers full agency
in these matters, many employers regularly choose to involve
themselves, lawfully or unlawfully, in the decisions of their
employees about whether to avail themselves of their rights
under the National Labor Relations Act and the Railway Labor
Act (45 U.S.C. 151 et seq.).
(4) Employers frequently violate labor laws around
organizing and collective action. The Economic Policy Institute
finds that in approximately 4 of 10 labor organization
elections in 2016-2017 employers were charged with committing
an unfair labor practice. Among larger bargaining units of 61
employees or more, over 54 percent of elections have an unfair
labor practice charge.
(5) In practice, these unfair labor practices often include
charges such as employees being illegally fired for labor
organization activity, refusal to bargain in good faith with
labor organizations, or coercion and intimidation. Employers
also frequently use captive audience meetings, workplace
surveillance, and other lawful or unlawful tactics to sway
labor organization elections.
(6) Whether or not there are charges of unlawful behavior,
employers spend millions of dollars to sway the opinions of
their employees with respect to whether or how to exercise
their rights under the National Labor Relations Act and the
Railway Labor Act. According to the Economic Policy Institute
report, companies spent $340,000,000 yearly on outside
consultants to sway their workers' opinions about labor
organization activities. This and other spending interfere with
the United States goal of ``encouraging the practice and
procedure of collective bargaining''.
(7) The Internal Revenue Code of 1986 has long recognized
that spending by businesses with the purpose of influencing the
general public with respect to elections, while it may be
lawful, is not tax deductible. Congress should extend that
principle to spending done by employers to influence workers'
elections and collective bargaining decisions. These free
choices to exercise the rights to engage in collective
bargaining, labor organization representation, and other lawful
collective activities should be made without taxpayer subsidies
of undue outside influence from employers.
SEC. 3. DENIAL OF DEDUCTION FOR ATTEMPTING TO INFLUENCE EMPLOYEES WITH
RESPECT TO LABOR ORGANIZATIONS OR LABOR ORGANIZATION
ACTIVITIES.
(a) In General.--Section 162(e)(1) of the Internal Revenue Code of
1986 is amended by striking ``or'' at the end of subparagraph (C), by
striking the period at the end of subparagraph (D) and inserting ``,
or'', and by adding at the end the following new subparagraph:
``(E) any attempt to influence the taxpayer's
employees with respect to labor organizations or labor
organization activities, including with respect to the
opinion of such employees regarding such organizations
or activities.''.
(b) Labor Organizations; Labor Organization Activities Defined.--
Section 162(e) of the Internal Revenue Code of 1986 is amended by
redesignating paragraph (6) as paragraph (7) and by inserting after
paragraph (5) the following new paragraph:
``(6) Labor organizations and labor organization activity
defined.--For purposes of this subsection--
``(A) Labor organization.--The term `labor
organization' has the meaning given such term in
section 3 of the Labor-Management Reporting and
Disclosure Act of 1959 (29 U.S.C. 402).
``(B) Labor organization activity.--
``(i) In general.--The term `labor
organization activity' includes labor
organization elections, labor disputes, and
collective actions.
``(ii) Other terms.--For purposes of clause
(i)--
``(I) Collective action.--The term
`collective action' means any action,
including collective bargaining,
described in section 7 of the National
Labor Relations Act (29 U.S.C. 157) or
any action that is a right of employees
or labor organizations under the
Railway Labor Act (45 U.S.C. 151 et
seq.).
``(II) Labor dispute.--The term
`labor dispute' has the meaning given
such term under section 3 of the Labor-
Management Reporting and Disclosure Act
of 1959 (29 U.S.C. 402).
``(III) Labor organization
election.--The term `labor organization
election' means any election described
in section 9 of the National Labor
Relations Act (29 U.S.C. 159) or
section 2 of the Railway Labor Act (45
U.S.C. 152).''.
(c) Special Rules.--Section 162(e)(4) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subparagraph:
``(D) Expenses relating to labor organizations or
labor organization activities.--
``(i) In general.--For purposes of
paragraph (1)(E), amounts paid or incurred in
connection with attempting to influence the
taxpayer's employees with respect to labor
organizations or labor organization activities
include--
``(I) any amount paid or incurred
by the taxpayer in connection with an
action that results in--
``(aa) a complaint issued
under section 10 of the
National Labor Relations Act
(29 U.S.C. 160) against the
taxpayer for an unfair labor
practice under section 8(a) of
such Act (29 U.S.C. 158(a)),
unless an order of the National
Labor Relations Board related
to such complaint is set aside
in full in accordance with
subsection (e) or (f) of
section 10 of such Act,
``(bb) a settlement offer
related to an investigation by
the National Labor Relations
Board of a charge of an unfair
labor practice under section
8(a) of such Act (29 U.S.C.
158(a)) that results in a
settlement of such charge
without issuance of a complaint
under section 10 of such Act
(29 U.S.C. 160), or
``(cc) a finding of
interference, influence, or
coercion by a Federal court
under section 2 of the Railway
Labor Act (45 U.S.C. 152),
``(II) any amount paid or incurred
(including wages) in producing,
conducting, or attending any meeting or
training--
``(aa) which includes
employees of the taxpayer who
are or who could become
bargaining unit members or
members of a craft or class
under the Railway Labor Act,
and
``(bb) at which labor
organizations or a labor
organization activity is
discussed, and
``(III) any amount which is
required to be reported under the
Labor-Management Reporting and
Disclosure Act of 1959 (29 U.S.C. 401
et seq.).
``(ii) Exceptions.--The following amounts
shall not be treated as amounts paid or
incurred in connection with attempting to
influence the taxpayer's employees with respect
to labor organizations or labor organization
activities under paragraph (1)(E):
``(I) Amounts paid or incurred for
communications or negotiations directly
with the designated or selected
representative of the employees of the
taxpayer described in section 9(a) of
the National Labor Relations Act (29
U.S.C. 159(a)) or under the Railway
Labor Act (45 U.S.C. 151 et seq.).
``(II) Amounts paid or incurred for
communications directly with
shareholders, as may be required under
section 13 of the Securities Exchange
Act of 1934 (15 U.S.C. 78m).
``(III) Amounts paid or incurred
for communications or consultations by
the taxpayer in the process of
voluntarily recognizing a labor
organization as a representative in
accordance with section 9 of the
National Labor Relations Act (29 U.S.C.
159).
``(IV) Amounts paid or incurred for
communications or consultations related
to the operation of a labor-management
partnership described in a collective
bargaining agreement in effect between
a representative of employees of the
taxpayer and the taxpayer.
``(V) Amounts paid or incurred for
communications or consultations related
to the operation of a grievance
procedure described in a collective
bargaining agreement in effect between
a representative of employees of the
taxpayer and the taxpayer.
``(VI) Amounts paid or incurred by
a labor organization.
``(VII) Amounts paid or incurred
for communication materials, including
visual or audio media, required to be
posted for, or provided to, employees
of the taxpayer by law, including under
the National Labor Relations Act (29
U.S.C. 151 et seq.) or the Railway
Labor Act (45 U.S.C. 151 et seq.).''.
(d) Information Reporting.--
(1) In general.--Subpart A of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 is amended by
inserting after section 6039J the following new section:
``SEC. 6039K. INFORMATION WITH RESPECT TO CERTAIN EMPLOYER ACTIVITIES
RELATING TO LABOR ORGANIZATIONS.
``(a) In General.--Any employer who attempts to influence the
employer's employees with respect to labor organizations or labor
organization activities as described in section 162(e)(1)(E) shall file
a return (at such time and in such manner as the Secretary may by
regulations prescribe, not more frequently than each quarter in which
such an attempt occurs and not less frequently than each year in which
such an attempt occurs) which includes the information described in
subsection (b).
``(b) Information To Be Provided.--Information required under
subsection (a) shall include--
``(1) the dates that such activities described in
subsection (a) took place,
``(2) a statement indicating whether the activity was an
activity described in item (aa), (bb), or (cc) of section
162(e)(4)(D)(i)(I),
``(3) the amounts paid or incurred for such activities,
``(4) a copy of any disclosures which are required to be
reported under the Labor-Management Reporting and Disclosure
Act of 1959 (29 U.S.C. 401 et seq.), and
``(5) such other information as the Secretary may
prescribe.''.
(2) Penalty.--Subparagraph (B) of section 6724(d)(1) of
such Code is amended--
(A) by striking the comma at the end of clause
(xxvii), as added by the Infrastructure Investment and
Jobs Act, and inserting ``, or'', and
(B) by adding at the end the following new clause:
``(xxviii) section 6039K (relating to
information with respect to certain employer
activities relating to labor organizations),
and''.
(3) Clerical amendment.--The table of sections for subpart
A of part III of subchapter A of chapter 61 of such Code is
amended by inserting after the item relating to section 6039J
the following new item:
``Sec. 6039K. Information with respect to certain employer activities
relating to labor organizations.''.
(e) Conforming Amendments.--
(1) The heading for subsection (e) of section 162 of the
Internal Revenue Code of 1986 is amended by striking ``and
Political Expenditures'' and inserting ``, Political
Expenditures, and Labor Organization Expenditures''.
(2) The heading of subparagraph (C) of section 162(e)(4) of
such Code is amended by striking ``and political activities''
and inserting ``, political, and labor organization
activities''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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