IFPTE Requests Senators Cosponsor and Pass Legislation to End Tax Subsidies for Union Busting, and Restore Tax Deduction for Union Dues

IFPTE sent letters to Senators asking they cosponsor legislation that repairs the federal tax code to support American workers and union members and end public subsidies for union busting. The No Tax Breaks for Union Busting Act and the Tax Fairness for Workers Act, sponsored by Sen. Bob Casey (D-PA), and were reintroduced last week with IFPTE’s endorsement. 

If enacted, the No Tax Breaks for Union Busting Act would classify employer interference in organizing campaigns as political speech under U.S. tax law and require any union busting expenditures to be reported to the IRS. Under NTBUB, unlawful employer tactics ranging from captive audience meetings to supposedly lawful tactics like sophisticated anti-union public relations efforts could no longer be tax-deductible business expenditures. 

The Tax Fairness for Workers Act would restore the federal income tax deduction for union dues as well as the tax deduction for unreimbursed business expenses, which was removed by the 2017 Tax Cuts and Jobs Act. Reinstating both those tax provisions allow union members and workers to take an above-the-line tax deduction by subtracting union dues and expenses such as job search expenses and costs for tools and uniforms from their gross income on their taxes. 

Both bills share the goal of ensuring that the tax code recognizes that union membership and collective bargaining are in the public interest and delivers benefits to union members, as well as nonunion workers in unionized industries and to the economy. IFPTE’s letter asking Senators to cosponsor the Tax Fairness for Workers Act cites the public benefit of unions and cites the U.S. Congress's Joint Economic Committee report from 2022 titled Unions Provide Major Economic Benefits For Workers And Families, which notes that “There are broader spillover economic benefits for all workers in industries with high rates of unionization—even if individual workers are not themselves in a union,” that “increases the median Black household’s wealth by more than three times,” and that “hourly wages for female union workers are 4.7% higher than for their non-union counterparts.”   

House of Representatives is expected to reintroduce the legislation in the coming weeks. IFPTE will continue to build bipartisan support for both bills and advocate for their passage.   

Read IFPTE’s letter to Senators requesting they cosponsor the No Tax Breaks for Union Busting Act. 

Read IFPTE’s letter to Senators requesting they cosponsor the Tax Fairness for Workers Act.