Washington, D.C. — Nearly two years after President Donald Trump signed the Tax Cuts and Jobs Act (TCJA) into law, a new issue brief from the Center for American Progress looks at the ways the act exacerbated the tax code double standard that tilts the scales against workers.
Large corporations are now able to fully deduct management and legal costs involved in negotiating with unions. Meanwhile, workers cannot deduct the cost off the dues they pay to their unions to represent them in the very same negotiations.
“Deducting the costs of earning one’s income is a basic principle of income taxation,” said Alexandra Thornton, senior director of Tax Policy at the Center for American Progress and author of the brief. “Unions are a proven mechanism for workers to negotiate for the pay and benefits they deserve, and union dues are an essential expense in negotiating those benefits. All workers should be able to deduct those expenses on their tax returns.”
Read the issue brief: “Why All Workers Should Be Able To Deduct Union Dues” by Alexandra Thornton
For more information or to speak to an expert, please contact Julia Cusick at [email protected] or 202-495-3682.