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02/05/2025 12:08 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20250&chamber=S&cosponId=44681
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Senate of Pennsylvania
Session of 2025 - 2026 Regular Session

MEMORANDUM

Posted: January 3, 2025 01:09 PM
From: Senator Nick Pisciottano
To: All Senate members
Subject: Eliminating State Subsidies for Union Busting
 
The United States has a long history of recognizing that workers have the right to collectively bargain and demand a voice in workplace issues related to fair pay, safety, and more. Federal and state law protect workers’ rights to join or form a union and collectively bargain, but recently we have seen companies use unfair labor practices to delay and avoid lawful unionization efforts. At the same time, these same companies receive state subsidies in the form of tax credits and tax deductions. I believe that it is unacceptable for the state to subsidize entities breaking the law and hope you will join me in sponsoring a pair of bills aimed at ending state tax subsidies for businesses that engage in union busting.

The first bill will amend the tax code to prevent business entities from deducting expenses that illegally challenge workers’ rights to unionize. This will apply to all corporations in the Commonwealth as well as pass-through entities. Opposing workers' fundamental rights to collectively bargain and breaking the law to do so should not be recognized by the Commonwealth as just another cost of doing business that is rewarded with a lighter tax bill every year.

The second bill will prohibit any entity found guilty of a labor violation by the National Labor Relations Board or the Pennsylvania Labor Relations Board from receiving a state tax credit or tax deduction through any state-funded program. Many of the Commonwealth’s grant programs are highly competitive, so businesses that play by the rules and respect workers’ rights should not lose out to those who violate federal and state law. Taxpayer dollars which fund grant programs across the Commonwealth should not be used to benefit companies that break the law to bust unions composed of those same taxpayers.

Pennsylvania should not be providing incentives or rewards to companies that engage in bad faith to deny workers their democratic rights to collectively bargain in the workplace.




Document #1

Description: The first bill amends the tax code to prevent expenses arising from illegal anti-union activities from being deducted as expenses on Pennsylvania tax returns.
 

Document #2

Description: The second bill amends the tax code to prohibit state agencies from awarding tax credits to entities that have been found guilty of any federal or state labor violation in the previous 10 years.
 

Memo Updated: January 3, 2025 01:11 PM