II 

117TH CONGRESS 

2D SESSION S. 4192 

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 SENATE OF THE UNITED STATES 

MAY 12, 2022 

Mr. CASEY (for himself, Mr. WYDEN, Mrs. MURRAY, Mr. BOOKER, Mr. VAN

HOLLEN, Mr. PADILLA, Mr. MARKEY, Ms. BALDWIN, Ms. WARREN, Mr. 

REED, Mr. BROWN, Mr. CARDIN, Ms. KLOBUCHAR, Mrs. GILLIBRAND, 

Mr. SANDERS, Mr. WHITEHOUSE, Ms. CORTEZ MASTO, Ms. SMITH, Mr. 

BLUMENTHAL, and Mr. MERKLEY) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No Tax Breaks for 

5 Union Busting (NTBUB) Act’’. 

2 

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1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) The National Labor Relations Act (29 

4 U.S.C. 151 et seq.) declares that it is the right of 

5 employees to form, join, or assist labor organiza6 tions. 

7 (2) The National Labor Relations Act further 

8 declares that it is ‘‘the policy of the United States 

9 to eliminate the causes of certain substantial ob10 structions to the free flow of commerce and to miti11 gate and eliminate these obstructions when they 

12 have occurred by encouraging the practice and pro13 cedure of collective bargaining and by protecting the 

14 exercise by workers of full freedom of association, 

15 self-organization, and designation of representatives 

16 of their own choosing . . .’’. 

17 (3) Despite Congress’ intention to give workers 

18 full agency in these matters, many employers regu19 larly choose to involve themselves, lawfully or unlaw20 fully, in the decisions of their employees about 

21 whether to avail themselves of their rights under the 

22 National Labor Relations Act and the Railway 

23 Labor Act (45 U.S.C. 151 et seq.). 

24 (4) Employers frequently violate labor laws 

25 around organizing and collective action. The Eco26 nomic Policy Institute finds that in approximately 4 

3 

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1 of 10 labor organization elections in 2016–2017 em2 ployers were charged with committing an unfair 

3 labor practice. Among larger bargaining units of 61 

4 employees or more, over 54 percent of elections have 

5 an unfair labor practice charge. 

6 (5) In practice, these unfair labor practices 

7 often include charges such as employees being ille8 gally fired for labor organization activity, refusal to 

9 bargain in good faith with labor organizations, or co10 ercion and intimidation. Employers also frequently 

11 use captive audience meetings, workplace surveil12 lance, and other lawful or unlawful tactics to sway 

13 labor organization elections. 

14 (6) Whether or not there are charges of unlaw15 ful behavior, employers spend millions of dollars to 

16 sway the opinions of their employees with respect to 

17 whether or how to exercise their rights under the 

18 National Labor Relations Act and the Railway 

19 Labor Act. According to the Economic Policy Insti20 tute, companies spent $340,000,000 yearly on out21 side consultants to sway their workers’ opinions 

22 about labor organization activities. This and other 

23 spending interfere with the United States goal of 

24 ‘‘encouraging the practice and procedure of collective 

25 bargaining’’. 

4 

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1 (7) The Internal Revenue Code of 1986 has 

2 long recognized that spending by businesses with the 

3 purpose of influencing the general public with re4 spect to elections, while it may be lawful, is not tax 

5 deductible. Congress should extend that principle to 

6 spending done by employers to influence workers’ 

7 elections and collective bargaining decisions. These 

8 free choices to exercise the rights to engage in collec9 tive bargaining, labor organization representation, 

10 and other lawful collective activities should be made 

11 without taxpayer subsidies of undue outside influ12 ence from employers. 

13 SEC. 3. DENIAL OF DEDUCTION FOR ATTEMPTING TO IN14 FLUENCE EMPLOYEES WITH RESPECT TO 

15 LABOR ORGANIZATIONS OR LABOR ORGANI16 ZATION ACTIVITIES. 

17 (a) IN GENERAL.—Section 162(e)(1) of the Internal 

18 Revenue Code of 1986 is amended by striking ‘‘or’’ at the 

19 end of subparagraph (C), by striking the period at the end 

20 of subparagraph (D) and inserting ‘‘, or’’, and by adding 

21 at the end the following new subparagraph: 

22 ‘‘(E) any attempt to influence the tax23 payer’s employees with respect to labor organi24 zations or labor organization activities, includVerDate Sep 11 2014 15:50 May 16, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192
5 

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1 ing with respect to the opinion of such employ2 ees regarding such organizations or activities.’’. 

3 (b) LABOR ORGANIZATIONS; LABOR ORGANIZATION

4 ACTIVITIES DEFINED.—Section 162(e) of the Internal 

5 Revenue Code of 1986 is amended by redesignating para6 graph (6) as paragraph (7) and by inserting after para7 graph (5) the following new paragraph: 

8 ‘‘(6) LABOR ORGANIZATIONS AND LABOR ORGA9 NIZATION ACTIVITY DEFINED.—For purposes of this 

10 subsection— 

11 ‘‘(A) LABOR ORGANIZATION.—The term 

12 ‘labor organization’ has the meaning given such 

13 term in section 3 of the Labor-Management Re14 porting and Disclosure Act of 1959 (29 U.S.C. 

15 402). 

16 ‘‘(B) LABOR ORGANIZATION ACTIVITY.— 

17 ‘‘(i) IN GENERAL.—The term ‘labor 

18 organization activity’ includes labor organi19 zation elections, labor disputes, and collec20 tive actions. 

21 ‘‘(ii) OTHER TERMS.—For purposes of 

22 clause (i)— 

23 ‘‘(I) COLLECTIVE ACTION.—The 

24 term ‘collective action’ means any ac25 tion, including collective bargaining, 

6 

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1 described in section 7 of the National 

2 Labor Relations Act (29 U.S.C. 157) 

3 or any action that is a right of em4 ployees or labor organizations under 

5 the Railway Labor Act (45 U.S.C. 

6 151 et seq.). 

7 ‘‘(II) LABOR DISPUTE.—The 

8 term ‘labor dispute’ has the meaning 

9 given such term under section 3 of the 

10 Labor-Management Reporting and 

11 Disclosure Act of 1959 (29 U.S.C. 

12 402). 

13 ‘‘(III) LABOR ORGANIZATION

14 ELECTION.—The term ‘labor organi15 zation election’ means any election de16 scribed in section 9 of the National 

17 Labor Relations Act (29 U.S.C. 159) 

18 or section 2 of the Railway Labor Act 

19 (45 U.S.C. 152).’’. 

20 (c) SPECIAL RULES.—Section 162(e)(4) of the Inter21 nal Revenue Code of 1986 is amended by adding at the 

22 end the following new subparagraph: 

23 ‘‘(D) EXPENSES RELATING TO LABOR OR24 GANIZATIONS OR LABOR ORGANIZATION ACTIVI25 TIES.— 

7 

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1 ‘‘(i) IN GENERAL.—For purposes of 

2 paragraph (1)(E), amounts paid or in3 curred in connection with attempting to in4 fluence the taxpayer’s employees with re5 spect to labor organizations or labor orga6 nization activities include— 

7 ‘‘(I) any amount paid or incurred 

8 by the taxpayer in connection with an 

9 action that results in— 

10 ‘‘(aa) a complaint issued 

11 under section 10 of the National 

12 Labor Relations Act (29 U.S.C. 

13 160) against the taxpayer for an 

14 unfair labor practice under sec15 tion 8(a) of such Act (29 U.S.C. 

16 158(a)), unless an order of the 

17 National Labor Relations Board 

18 related to such complaint is set 

19 aside in full in accordance with 

20 subsection (e) or (f) of section 10 

21 of such Act, 

22 ‘‘(bb) a settlement offer re23 lated to an investigation by the 

24 National Labor Relations Board 

25 of a charge of an unfair labor 

8 

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1 practice under section 8(a) of 

2 such Act (29 U.S.C. 158(a)) that 

3 results in a settlement of such 

4 charge without issuance of a 

5 complaint under section 10 of 

6 such Act (29 U.S.C. 160), or 

7 ‘‘(cc) a finding of inter8 ference, influence, or coercion by 

9 a Federal court under section 2 

10 of the Railway Labor Act (45 

11 U.S.C. 152), 

12 ‘‘(II) any amount paid or in13 curred (including wages) in producing, 

14 conducting, or attending any meeting 

15 or training— 

16 ‘‘(aa) which includes employ17 ees of the taxpayer who are or 

18 who could become bargaining 

19 unit members or members of a 

20 craft or class under the Railway 

21 Labor Act, and 

22 ‘‘(bb) at which labor organi23 zations or a labor organization 

24 activity is discussed, and 

9 

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1 ‘‘(III) any amount which is re2 quired to be reported under the 

3 Labor-Management Reporting and 

4 Disclosure Act of 1959 (29 U.S.C. 

5 401 et seq.). 

6 ‘‘(ii) EXCEPTIONS.—The following 

7 amounts shall not be treated as amounts 

8 paid or incurred in connection with at9 tempting to influence the taxpayer’s em10 ployees with respect to labor organizations 

11 or labor organization activities under para12 graph (1)(E): 

13 ‘‘(I) Amounts paid or incurred 

14 for communications or negotiations di15 rectly with the designated or selected 

16 representative of the employees of the 

17 taxpayer described in section 9(a) of 

18 the National Labor Relations Act (29 

19 U.S.C. 159(a)) or under the Railway 

20 Labor Act (45 U.S.C. 151 et seq.). 

21 ‘‘(II) Amounts paid or incurred 

22 for communications directly with 

23 shareholders, as may be required 

24 under section 13 of the Securities Ex25 change Act of 1934 (15 U.S.C. 78m). 

10 

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1 ‘‘(III) Amounts paid or incurred 

2 for communications or consultations 

3 by the taxpayer in the process of vol4 untarily recognizing a labor organiza5 tion as a representative in accordance 

6 with section 9 of the National Labor 

7 Relations Act (29 U.S.C. 159). 

8 ‘‘(IV) Amounts paid or incurred 

9 for communications or consultations 

10 related to the operation of a labor11 management partnership described in 

12 a collective bargaining agreement in 

13 effect between a representative of em14 ployees of the taxpayer and the tax15 payer. 

16 ‘‘(V) Amounts paid or incurred 

17 for communications or consultations 

18 related to the operation of a grievance 

19 procedure described in a collective 

20 bargaining agreement in effect be21 tween a representative of employees of 

22 the taxpayer and the taxpayer. 

23 ‘‘(VI) Amounts paid or incurred 

24 by a labor organization. 

11 

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1 ‘‘(VII) Amounts paid or incurred 

2 for communication materials, includ3 ing visual or audio media, required to 

4 be posted for, or provided to, employ5 ees of the taxpayer by law, including 

6 under the National Labor Relations 

7 Act (29 U.S.C. 151 et seq.) or the 

8 Railway Labor Act (45 U.S.C. 151 et 

9 seq.).’’. 

10 (d) INFORMATION REPORTING.— 

11 (1) IN GENERAL.—Subpart A of part III of 

12 subchapter A of chapter 61 of the Internal Revenue 

13 Code of 1986 is amended by inserting after section 

14 6039J the following new section: 

15 ‘‘SEC. 6039K. INFORMATION WITH RESPECT TO CERTAIN 

16 EMPLOYER ACTIVITIES RELATING TO LABOR 

17 ORGANIZATIONS. 

18 ‘‘(a) IN GENERAL.—Any employer who attempts to 

19 influence the employer’s employees with respect to labor 

20 organizations or labor organization activities as described 

21 in section 162(e)(1)(E) shall file a return (at such time 

22 and in such manner as the Secretary may by regulations 

23 prescribe, not more frequently than each quarter in which 

24 such an attempt occurs and not less frequently than each 

12 

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1 year in which such an attempt occurs) which includes the 

2 information described in subsection (b). 

3 ‘‘(b) INFORMATION TO BE PROVIDED.—Information 

4 required under subsection (a) shall include— 

5 ‘‘(1) the dates that such activities described in 

6 subsection (a) took place, 

7 ‘‘(2) a statement indicating whether the activity 

8 was an activity described in item (aa), (bb), or (cc) 

9 of section 162(e)(4)(D)(i)(I), 

10 ‘‘(3) the amounts paid or incurred for such ac11 tivities, 

12 ‘‘(4) a copy of any disclosures which are re13 quired to be reported under the Labor-Management 

14 Reporting and Disclosure Act of 1959 (29 U.S.C. 

15 401 et seq.), and 

16 ‘‘(5) such other information as the Secretary 

17 may prescribe.’’. 

18 (2) PENALTY.—Subparagraph (B) of section 

19 6724(d)(1) of such Code is amended— 

20 (A) by striking the comma at the end of 

21 clause (xxvii), as added by the Infrastructure 

22 Investment and Jobs Act, and inserting ‘‘, or’’, 

23 and 

24 (B) by adding at the end the following new 

25 clause: 

13 

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1 ‘‘(xxviii) section 6039K (relating to 

2 information with respect to certain em3 ployer activities relating to labor organiza4 tions), and’’. 

5 (3) CLERICAL AMENDMENT.—The table of sec6 tions for subpart A of part III of subchapter A of 

7 chapter 61 of such Code is amended by inserting 

8 after the item relating to section 6039J the fol9 lowing new item: 

‘‘Sec. 6039K. Information with respect to certain employer activities relating to 

labor organizations.’’. 

10 (e) CONFORMING AMENDMENTS.— 

11 (1) The heading for subsection (e) of section 

12 162 of the Internal Revenue Code of 1986 is amend13 ed by striking ‘‘AND POLITICAL EXPENDITURES’’ 

14 and inserting ‘‘, POLITICAL EXPENDITURES, AND

15 LABOR ORGANIZATION EXPENDITURES’’. 

16 (2) The heading of subparagraph (C) of section 

17 162(e)(4) of such Code is amended by striking ‘‘AND

18 POLITICAL ACTIVITIES’’ and inserting ‘‘, POLITICAL, 

19 AND LABOR ORGANIZATION ACTIVITIES’’. 

20 (f) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 the date of the enactment of this Act. 

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