Wyden, Merkley Introduce Tax Fairness Bill for Striking Workers

Washington, D.C. - U.S. Senators Ron Wyden and Jeff Merkley (both D-OR) said today they have introduced legislation that would ensure workers in Oregon and nationwide are not taxed on the small stipends they receive while on strike.

"Americans battling for fair wages, working conditions and benefits count on strike funds from their union to keep providing food, shelter and more for their families," said Wyden, ranking member of the Senate Finance Committee. "This bill provides a fair shake for those workers by making sure they don't face a financial punishment come tax time just for having exercised their right to strike for a better future."

"As the son of a union machinist, I saw firsthand the difference a strong union can make in delivering the fair wages and robust workplace protections that every worker deserves," Merkley said. "We need legislation like the Tax Cut for Striking Workers Act to make sure union workers can strike without facing a double tax penalty for exercising their rights."

When workers go on strike, they may receive a small stipend to help cover some of their lost wages, usually paid from a strike fund set up by the union. Strike fund payments can vary by union but are usually just a few hundred dollars a week. Many workers are surprised when they later find out they owe federal taxes on these small payments.

The Tax Cut for Striking Workers Act would provide relief for striking workers by excluding compensation a worker receives from a union's strike fund from a taxpayer's gross income.

In addition to Wyden and Merkley, other co-sponsors of the bill led by U.S. Senator Ruben Gallego (D-AZ) are Senators Kirsten Gillibrand (D-NY), Cory Booker (D-NJ), Richard Blumenthal (D-CT), Brian Schatz (D-HI), Tammy Baldwin (D-WI), Chris Van Hollen (D-MD), and John Fetterman (D-PA).

The Tax Cut for Striking Workers Act is supported by the following groups: United Mine Workers of America (UMWA), International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART), International Association of Machinists and Aerospace Workers (IAM), International Brotherhood of Teamsters, Communications Workers of America (CWA), International Alliance of Theatrical Stage Employees (IATSE), Iron Workers, United Food and Commercial Workers International Union (UFCW), American Federation of Teachers (AFT), Transport Workers Union of America (TWU), National Nurses United, American Federation of Musicians, National Federation of Federal Employees (NFFE-IAM), American Federation of State, County and Municipal Employees (AFSCME), Center for American Progress, AFL-CIO, United Steelworkers (USW).

Full text of the legislation is here.

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