No Tax Breaks for Union Busting (NTBUB) Act
Bill: S.4192 | Sponsor: Sen. Casey, Robert P., Jr. (D-PA)
Policy area: Taxation

Summary:
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.

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, 
        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.
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