,,ii #aahth ,,congress #ast ,session ,s4 #gcg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #i1 #bjbc,mr4 ,casey 7for himself1 ,mrs4 ,murray1 ,mr4 ,wyden1 ,mr4 ,van ,hollen1 ,mr4 ,booker1 ,mr4 ,schatz1 ,ms4 ,smith1 ,mr4 ,reed1 ,mr4 ,murphy1 ,mr4 ,welch1 ,mr4 ,durbin1 ,mr4 ,markey1 ,ms4 ,warren1 ,ms4 ,baldwin1 ,mr4 ,lujn1 ,ms4 ,klobuchar1 ,mr4 ,merkley1 ,mr4 ,sanders1 ,mr4 ,whitehouse1 ,mr4 ,cardin1 ,mr4 ,brown1 ,mr4 ,blumenthal1 ,ms4 ,stabenow1 ,mr4 ,padilla1 ,mr4 ,menendez1 ,ms4 ,hirono1 ,mr4 ,fetterman1 ,mr4 ,peters1 and ,ms4 ,cortez ,masto7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to end the tax subsidy for employer efforts to influence their workers' exercise of their rights around labor organizations and engaging in collective action4 #a4 ,short title ,this ,act may be cited as the ,no ,tax ,breaks for ,union ,busting 7,,ntbub7 ,act4 #b4 ,findings ,congress makes the following findings3 7#a7 ,the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aea et seq47 declares that it is the right of employees to form1 join1 or assist labor organizations4 7#b7 ,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 association1 self-organization1 and designation of representatives of their own choosing 4 4 44 7#c7 ,despite ,congress' intention to give workers full agency in these matters1 many employers regularly choose to involve themselves1 lawfully or unlawfully1 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 7#de ,u4,s4,c4 #aea et seq474 7#d7 ,employers frequently violate labor laws around organizing and collective action4 ,the ,economic ,policy ,institute finds that in approximately #d of #aj labor organization elections in #bjaf-bjag employers were charged with committing an unfair labor practice4 ,among larger bargaining units of #fa employees or more1 over #ed percent of elections have an unfair labor practice charge4 7#e7 ,in practice1 these unfair labor practices often include charges such as employees being illegally fired for labor organization activity1 refusal to bargain in good faith with labor organizations1 or coercion and intimidation4 ,employers also frequently use captive audience meetings1 workplace surveillance1 and other lawful or unlawful tactics to sway labor organization elections4 7#f7 ,whether or not there are charges of unlawful behavior1 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 ,act4 ,according to the ,economic ,policy ,institute1 companies spent #cdj1jjj1jjj yearly on outside consultants to sway their workers' opinions about labor organization activities4 ,this and other spending interfere with the ,united ,states' goal of encouraging the practice and procedure of collective bargaining4 7#g7 ,the ,internal ,revenue ,code of #aihf has long recognized that spending by businesses with the purpose of influencing the general public with respect to elections1 while it may be lawful1 is not tax deductible4 ,congress should extend that principle to spending done by employers to influence workers' elections and collective bargaining decisions4 ,these free choices to exercise the rights to engage in collective bargaining1 labor organization representation1 and other lawful collective activities should be made without taxpayer subsidies of undue outside influence from employers4 #c4 ,denial of deduction for attempting to influence employees with respect to labor organizations or labor organization activities 7a7 ,in general ,section #afb7;e77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,c71 by striking the period at the end of subparagraph 7,d7 and inserting 1 or1 and by adding at the end the following new subparagraph3 7,e7 any attempt to influence the taxpayer's employees with respect to labor organizations or labor organization activities1 including with respect to the opinion of such employees regarding such organizations or activities4 4 7b7 ,labor organizations2 labor organization activities defined ,section #afb7;e7 of the ,internal ,revenue ,code of #aihf is amended by redesignating paragraph 7#f7 as paragraph 7#g7 and by inserting after paragraph 7#e7 the following new paragraph3 7#f7 ,labor organizations and labor organization activity defined ,for purposes of this subsection-- 7,a7 ,labor organization ,the term labor organization has the meaning given such term in section #c of the ,labor-,management ,reporting and ,disclosure ,act of #aiei 7#bi ,u4,s4,c4 #djb74 7,b7 ,labor organization activity 7i7 ,in general ,the term labor organization activity means labor organization elections1 labor disputes1 collective actions1 and such other related activities identified by the ,secretary4 7ii7 ,other terms ,for purposes of clause 7i7-- 7,i7 ,collective action ,the term collective action means any action1 including collective bargaining1 described in section #g of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeg7 or any action that is a right of employees or labor organizations under the ,railway ,labor ,act 7#de ,u4,s4,c4 #aea et seq474 7,,ii7 ,labor dispute ,the term labor dispute has the meaning given such term under section #c of the ,labor-,management ,reporting and ,disclosure ,act of #aiei 7#bi ,u4,s4,c4 #djb74 7,,iii7 ,labor organization election ,the term labor organization election means any election described in section #i of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aei7 or section #b of the ,railway ,labor ,act 7#de ,u4,s4,c4 #aeb74 4 7c7 ,special rules 7#a7 ,in general ,section #afb7;e77#d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,d7 ,expenses relating to labor organizations or labor organization activities 7i7 ,in general ,for purposes of paragraph 7#a77;,e71 amounts paid or incurred in connection with attempting to influence the taxpayer's employees with respect to labor organizations or labor organization activities include-- 7,i7 any amount paid or incurred directly or indirectly by the taxpayer1 including wages and other general and administrative costs1 in connection with an action that results in-- 7aa7 a complaint issued under section #aj of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #afj7 against the taxpayer for an unfair labor practice under section #h7;a7 of such ,act 7#bi ,u4,s4,c4 #aeh7;a771 7bb7 a settlement offer related to an investigation by the ,national ,labor ,relations ,board of a charge of an unfair labor practice under section #h7;a7 of such ,act 7#bi ,u4,s4,c4 #aeh7;a77 that results in a settlement of such charge without issuance of a complaint under section #aj of such ,act 7#bi ,u4,s4,c4 #afj71 or 7cc7 a finding of interference1 influence1 or coercion by a ,federal court under section #b of the ,railway ,labor ,act 7#de ,u4,s4,c4 #aeb71 7,,ii7 any amount paid or incurred directly or indirectly by the taxpayer1 including wages and other general and administrative costs1 in producing1 conducting1 or attending any meeting or training-- 7aa7 which includes employees of the taxpayer who are or who could become members of a unit appropriate for the purposes of collective bargaining1 and 7bb7 at which labor organizations or a labor organization activity is discussed1 and 7,,iii7 any amount which is required to be reported under the ,labor-,management ,reporting and ,disclosure ,act of #aiei 7#bi ,u4,s4,c4 #dja et seq474 7ii7 ,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 7#a77;,e73 7,i7 ,amounts paid or incurred for communications or negotiations directly with the designated or selected representative of the employees of the taxpayer described in section #i7;a7 of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aei7;a77 or under the ,railway ,labor ,act 7#de ,u4,s4,c4 #aea et seq474 7,,ii7 ,amounts paid or incurred for communications directly with shareholders1 as may be required under section #ac of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm74 7,,iii7 ,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 #i of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aei74 7,,iv7 ,amounts paid or incurred with respect 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 taxpayer1 including a labor management committee established pursuant to section #bje;,a7a7 of the ,labor ,management ,relations ,act1 #aidg 7#bi ,u4,s4,c4 #age;a7a774 7,v7 ,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 taxpayer4 7,,vi7 ,amounts paid or incurred by a labor organization4 7,,vii7 ,amounts paid or incurred for communication materials1 including visual or audio media1 required to be posted for1 or provided to1 employees of the taxpayer by law1 including under the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aea et seq47 or the ,railway ,labor ,act 7#de ,u4,s4,c4 #aea et seq474 7,,viii7 ,amounts paid or incurred relating to a complaint which is issued by the ,national ,labor ,relations ,board and which is set aside in full in accordance with subsection 7e7 or 7f7 of section #aj of such ,act4 4 7#b7 ,regulatory authority 7,a7 ,in general ,section #afb7;e7 of such ,code1 as amended by subsection 7b71 is amended by redesignating paragraph 7#g7 as paragraph 7#h7 and by inserting after paragraph 7#f7 the following new paragraph3 7#g7 ,regulations ,the ,secretary shall prescribe such guidance1 rules1 or regulations as are necessary to carry out the purposes of this subsection1 including rules relating to the timing of any deductions in connection with amounts described in paragraph 7#d77;,d77ii77,,viii74 4 7,b7 ,timing ,not later than the date that is #bdj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall prescribe guidance1 rules1 or regulations with respect to the application of the amendments made by this ,act4 7d7 ,information reporting 7#a7 ,certain information included in tax returns 7,a7 ,in general ,part ,i of subchapter ,b of chapter #fh is amended by adding at the end the following new section3 #fgbj;,d4 ,failure to include certain information with respect to employer activities relating to labor organizations 7a7 ,in general ,if any taxpayer who makes expenditures described in section #afb7;e77#a77;,e7 fails to provide with the return of tax for the taxable year to which such expenditures relate the information provided in subsection 7c7 with respect to such expenditures1 or who fails to provide all of the information required under subsection 7b7 or fails to provide correct information1 shall pay a penalty in the amount determined under subsection 7b74 7b7 ,determination of penalty amount 7#a7 ,in general ,the amount of the penalty under this section for any failure described in subsection 7a7 shall be the greater of-- 7,a7 #aj1jjj1 or 7,b7 the product of #a1jjj and the number of full time equivalent employees of the employer 7as determined under section #de,r7d77#b774 7#b7 ,increased penalty where failure continues 7,a7 ,in general ,if any failure described in subsection 7a7 7#a7 continues for more than #ij days after the day on which the ,secretary mails notice of such failure to the taxpayer1 the taxpayer shall pay a penalty 7in addition to the amount of any penalty under paragraph 7#a77 equal to the amount determined under paragraph 7#a7 for each #cj-;day period 7or fraction thereof7 during which such failure continues after the expiration of such #ij-;day period4 7,b7 ,limitation ,the penalty imposed under this paragraph with respect to any failure shall not exceed #ajj1jjj4 7c7 ,information ,to be provided ,the information required under this subsection shall include-- 7#a7 the dates that such activities described in section #afb7;e77#a77;,e7 took place1 7#b7 a statement indicating whether the activity was an activity described in item 7aa71 7bb71 or 7cc7 of section #afb7;e77#d77;,d77i77,i71 7#c7 the amounts paid or incurred for such activities1 7#d7 a copy of any disclosures which are required to be reported under the ,labor-,management ,reporting and ,disclosure ,act of #aiei 7#bi ,u4,s4,c4 #dja et seq471 and 7#e7 such other information as the ,secretary may prescribe4 7d7 ,reasonable cause exception ,no penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect4 4 7,b7 ,clerical amendment ,the table of sections for part ,i of subchapter ,b of chapter #fh is amended by adding at the end the following new item3 ,sec4 #fgbj;,d4 ,failure to include certain information with respect to employer activities relating to labor organizations4 4 7#b7 ,third-party information reporting 7,a7 ,in general ,subpart ,a of part ,,iii of subchapter ,a of chapter #fa of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fjci;,j the following new section3 #fjci,k4 ,information with respect to certain employer activities relating to labor organizations 7a7 ,in general ,any person conducting activities described in section #afb7;e77#a77;,e7 on behalf of another person shall file a return 7at such time and in such manner as the ,secretary may by regulations prescribe1 which includes the information described in subsection 7b774 7b7 ,information ,to be provided ,information required under subsection 7a7 shall include-- 7#a7 the person on behalf of whom the activities described in section #afb7;e77#a77;,e7 were performed1 7#b7 the dates that such activities described in such section took place1 7#c7 a statement indicating whether the activity was an activity described in item 7aa71 7bb71 or 7cc7 of section #afb7;e77#d77;,d77i77,i71 7#d7 the amounts paid or incurred for such activities1 and 7#e7 such other information as the ,secretary may prescribe4 4 7,b7 ,penalty ,subparagraph 7,b7 of section #fgbd7;d77#a7 of such ,code is amended-- 7i7 by striking the comma at the end of clause 7xxvii71 as added by the ,infrastructure ,investment and ,jobs ,act1 and inserting 1 or1 and 7ii7 by adding at the end the following new clause3 7xxviii7 section #fjci,k 7relating to information with respect to certain employer activities relating to labor organizations71 and 4 7,c7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iii of subchapter ,a of chapter #fa of such ,code is amended by inserting after the item relating to section #fjci;,j the following new item3 ,sec4 #fjci,k4 ,information with respect to certain employer activities relating to labor organizations4 4 7e7 ,conforming amendments 7#a7 ,the heading for subsection 7e7 of section #afb of the ,internal ,revenue ,code of #aihf is amended by striking and political expenditures and inserting 1 political expenditures1 and labor organization expenditures4 7#b7 ,the heading of subparagraph 7,c7 of section #afb7;e77#d7 of such ,code is amended by striking and political activities and inserting 1 political1 and labor organization activities4 7f7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date that is #bdj days after the date of the enactment of this ,act4