Rep. Axne Introduces Legislation to End Taxpayer-Funded Union Busting

Press Release

This week, Rep. Cindy Axne (IA-03) joined over 100 of her colleagues in introducing legislation that would end tax breaks for corporate activity that discourages workers from forming a union.

While the National Labor Relations Act (NLRA) protects the right to collectively bargain, corporations are spending an estimated $340 million a year on union-busting campaigns -- with activities including hosting "captive audience meetings," hiring expensive "union avoidance" firms, threatening to withhold benefits, firing pro-union workers, and more.

These expenses are currently tax deductible and are regularly written off as business expenses.

The No Tax Breaks for Union Busting Act would end taxpayer-funded anti-union behavior. Specifically, it would classify corporate interference in worker organization campaigns as political speech under the tax code, thereby revoking its tax deductibility.

Additionally, the No Tax Breaks for Union Busting Act would require corporations to report anti-worker interventions to the IRS to ensure they pay their fair share of taxes and do not receive undeserved tax deductions.

"Taxpayer dollars should never finance corporate greed and actions that prevent workers from securing higher wages, better working conditions, and better benefits," said Rep. Axne. "This bill will make sure that we're supporting workers -- who are joining unions in record numbers -- and defending the right to organize. I'll always be a partner to the labor movement as we fight to ensure workers have a seat at the table."

This bill builds on Rep. Axne's recent efforts, including the introduction of the Locked Out Workers' Healthcare Protection Act and Striking Workers' Healthcare Protection Act, to protect striking and locked out workers and their families from losing access to their health benefits.

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