I know this is a rhetorical question but why are Labor Unions tax exempt? They do have to pay taxes on direct political contributions but that is after the fact and only on the dollars they use for political contributions. They can use tax exempt money for lobbying and other power-brokering activities and that is a real thin line between a political and non-political contribution or expenditure…
The businesses the Union seek to unionize have to pay corporate taxes. Obviously government agencies who are unionized do not pay taxes but their employees have to pay union dues. Since everyone else drags out the 14th Amendment to support their cause why not apply the “Equal Protection” tenets of the 14th Amendment to eliminate this LOOPHOLE?
Section 1 reads:
“All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.” (emphasis mine)
(Various court cases have interpreted this Amendment to also include the Federal Government even
though the original text specifically called out “State”, and it is capitalized)
So, you have a business that operates under a union contract, and who pays federal and state income taxes; and you have the representing union, collecting dues from the business’s employees; why aren’t both the business and the Union subject to federal and state taxes? Answer, the Democrat Party protects the unions and themselves by “sheltering” as much of the union’s income as possible, LOOPHOLE, from federal and state income taxes. Is this fair, or equal? I think not!
Public Sector Unions: This is especially egregious in the case of Public Sector Unions. The union has the federal, state or local agency collect the dues for them; then they turn around and support Democrat candidates. Sweet! Why do you think that only 6% of the infamous Obama Stimulus fiasco went to build roads and other infrastructures? Because much of the 94% went to states and counties to keep from terminating public sector employees and thus reducing the Union’s dues revenue; and the rest went for grants for special projects that when to organizations, including unions, who kicked back much of the funding they received to the Democrat party. Nice work if you can get it.
In order to level the playing field just a little, UNIONS SHOULD ALSO PAY THEIR FAIR SHARE OF TAXES LIKE THE RICH THEY LOVE TO ATTACK! There is no logical reason why they are tax exempt. They are truly a business and should not be able to have a 20-25% subsidy just because they support Democrat candidates. There is an argument to be made, and it was by Franklin D. Roosevelt, that public sector employees should not be unionized. It sets up a conflict of interest between the real employer, the taxpayers, the government agency as the agent employer and the union employees. FDR said it best himself:
“… Meticulous attention should be paid to the special relationships and obligations of public servants to the public itself and to the government. All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations … The very nature and purposes of Government make it impossible for … officials … to bind the employer … The employer is the whole people, who speak by means of laws enacted by their representatives …
“Particularly, I want to emphasize my conviction that militant tactics have no place in the functions of any organization of government employees. Upon employees in the federal service rests the obligation to serve the whole people … This obligation is paramount … A strike of public employees manifests nothing less than an intent … to prevent or obstruct … Government … Such action, looking toward the paralysis of Government … is unthinkable and intolerable.” (emphasis mine)
Franklin D. Roosevelt, 1937
Well, if you attend a town hall with your Congressman or Senator, you might want to ask them where they stand on this. Washington is really brave when it comes to attacking business, you can watch you representative squirm when you pose this question to them…