Picket Line Protection Act of 2025
Summary
The Picket Line Protection Act of 2025 aims to amend the Internal Revenue Code of 1986 by excluding strike benefits from gross income. This means that compensation received by union members during a strike would not be subject to federal income tax. The bill was introduced in the House of Representatives by Mr. Thanedar and referred to the Committee on Ways and Means.
Expected Effects
If enacted, this act would reduce the tax burden on union workers who receive strike benefits. This could provide financial relief and strengthen the bargaining power of unions during labor disputes. The change would apply to compensation received after January 1, 2025.
Potential Benefits
- Provides financial relief to striking workers by exempting strike benefits from federal income tax.
- Potentially strengthens the bargaining power of labor unions.
- Could encourage more workers to participate in strikes for better wages and working conditions.
- Simplifies tax filing for union members receiving strike benefits.
- May lead to increased economic activity in communities where striking workers reside, as they have more disposable income.
Potential Disadvantages
- Reduces federal tax revenue, potentially increasing the tax burden on other taxpayers or leading to cuts in government programs.
- Could be perceived as unfairly favoring union members over other taxpayers.
- May incentivize longer strikes, potentially disrupting economic activity.
- Could create administrative complexities for the IRS in defining and tracking strike benefits.
- Potentially increases the risk of fraudulent claims for strike benefits.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to support workers and their families during labor disputes. Additionally, the First Amendment protects the right to assemble and petition the government, which includes the right to strike. However, the Constitution does not explicitly address the taxation of strike benefits. Article I, Section 8 grants Congress the power to lay and collect taxes, so this bill is an act of Congress choosing not to tax a particular form of income.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).