By Justin Hegy -
Union members are allowed to deduct their union dues on their taxes, equating to an estimated $15 billion nationwide.
According to the Internal Revenue Service, workers are allowed to deduct union dues as part of their itemized deductions:
“You can deduct dues and initiation fees you pay for union membership… You can also deduct assessments for benefit payments to unemployed union member.”
And although there’s a clause stating the portion of dues being used for political lobbying are excluded, unions often blur the lines and misrepresent what activities dues actually fund. Either way, the majority of dues are still deductible.
This not only means lost tax revenue for the federal government, but it also means taxpayers are indirectly subsidizing labor unions – many of which are often overtly political in nature.
Worse yet, in states such as Illinois, workers in unionized workplaces are often forced to pay union dues as a condition of employment.
So states such as Illinois can force you to pay union dues, then pat you on the back come year’s end, essentially saying: “Don’t worry… other taxpayers will help pick up the tab.”
Justin Hegy is a Policy Analyst at the Illinois Policy Institute