No Tax Breaks for Union Busting (NTBUB) Act
Key claim: The NTBUB Act would deny federal tax deductions for business expenses used to influence employees against labor organizing and impose information reporting requirements and penalties on employers engaging in such activities.
Abstract
(HR2692 · 119th Congress) No Tax Breaks for Union Busting (NTBUB) Act This bill excludes from the tax deduction for ordinary and necessary business expenses amounts paid or incurred to influence employees with respect to labor organizations or labor organization activities. The bill also imposes information reporting requirements related to such expenses and imposes penalties for failure to comply. Under the bill, amounts paid to influence employees with respect to labor organizations include amounts paid (including wages and other costs) in connection with an action that results in a complaint or settlement related to an unfair labor practice or a finding of interference, influence, or coercion related to railway employees’ rights to organize and bargain collectively; for any meeting or training attended by employees and at which labor organizations are discussed; and that require certain employer disclosures and financial reporting. (Some exceptions apply.) The bill requires employers to file a return reporting certain information related to expenses paid to influence employees with respect to labor organizations and imposes a penalty for noncompliance. The amount of the penalty is the greater of (1) $10,000, or (2) $1,000 multiplied by the number full-time equivalent employees. Additional penalties apply for violations that continue for more than 90 days. The bill also imposes information reporting requirements on persons conducting activities on behalf of another person to influence employees with respect to labor organizations. The bill allows certain penalties for noncompliance with the reporting requirements to be waived if noncompliance is due to reasonable cause and not willful neglect. Latest action (2025-04-07): Referred to the House Committee on Ways and Means.
Why this matters
The NTBUB Act illustrates how the tax code’s deduction-denial mechanism — previously used for fines, lobbying, and certain settlement payments — is being extended into labor policy as a lever to discourage employer anti-union spending. If enacted, it would shift federal tax liability onto employers running persuader campaigns and layer new IRS reporting duties atop labor law disclosure regimes, blending taxation and labor enforcement.