S. 1310 — No Tax Breaks for Union Busting (NTBUB) Act

This section states congressional findings on employer interference with employees' rights to organize and collectively bargain under the National Labor Relations Act (29 U.S.C. 151 et seq.) and Railway Labor Act (45 U.S.C. 151 et seq.), including that employers were charged with unfair labor practices in approximately 40% of labor organization elections in 2016–2017 (over 54% in units of 61 or more employees) and spend $340 million annually on outside consultants to influence workers' decisions on union activities. The section asserts that such employer spending, like electioneering expenditures under the Internal Revenue Code, should not be tax deductible to avoid taxpayer subsidies for undue influence.

This section amends IRC §162(e)(1) to deny a business expense deduction for any taxpayer attempt to influence its employees with respect to labor organizations or labor organization activities (new subparagraph (E)). It further (1) defines "labor organization" by reference to the Labor-Management Reporting and Disclosure Act of 1959 (new §162(e)(6)(A)) and "labor organization activity" to include labor organization elections, labor disputes, collective actions such as collective bargaining, and related activities identified by the Secretary (new §162(e)(6)(B)); and (2) specifies includible nondeductible expenses under new §162(e)(4)(D)(i), such as costs resulting in National Labor Relations Act unfair labor practice complaints or settlements, employee meetings discussing labor organizations, and Labor-Management Reporting and Disclosure Act reportable amounts, subject to exceptions for new §162(e)(4)(D)(ii), including communications with certified employee representatives, required disclosures under the Securities Exchange Act of 1934 (§13, 15 U.S.C. 78m), voluntary recognition of labor organizations, labor-management partnerships and grievance procedures under collective bargaining agreements, labor organization expenditures, legally required postings, and certain set-aside NLRB complaints.