No Tax Breaks for Union Busting (NTBUB) Act

Key Points

• The bill eliminates tax deductions for any employer spending aimed at influencing workers' decisions about joining or supporting a union. This includes money spent on anti-union consultants, captive audience meetings, and related activities. It treats these costs like political lobbying, which is already not deductible.
• Employers could no longer write off costs tied to unfair labor practice complaints, NLRB settlement offers, or court findings of interference with workers' rights. This covers wages, administrative costs, and any other spending connected to those actions.
• Companies must report their anti-union spending to the IRS, and outside consultants hired to influence workers must also file reports. Failing to report carries penalties starting at $10,000 or $1,000 per employee, whichever is greater, with additional fines of up to $100,000 if the failure continues.
• The bill carves out exceptions for normal labor-management relations. Spending on contract negotiations with existing unions, handling grievances, voluntarily recognizing a union, labor-management partnerships, and legally required employee notices all remain deductible.
• Supporters cite research showing companies spend $340 million a year on outside consultants to discourage union activity, and that unfair labor practice charges are filed in roughly 4 out of 10 union elections. They argue taxpayers should not subsidize this interference with workers' rights.