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Richard Rider

The labor unions’ HUGE, secret political tax loophole

California Prop 32 would end political payroll deductions for corporations and labor unions.  Both sides are spending millions on this measure (with the “no” side — all union money — spending MANY millions MORE against it).

But here’s a point that’s seldom mentioned — even by Prop 32 supporters.  Labor union dues are 100% tax deductible — on both federal and California income tax returns.  As much as 75% of union dues are used (directly or indirectly) for politics.

Hence unions and their members advocate and contribute with PRE-tax dollars, whereas those contributing voluntarily must use AFTER-tax dollars.  It means that about one out of every three labor union dollars spent on politics comes from the taxpayer, thanks to this giveaway.  And BTW, this union tax deduction for politics costs federal and state governments BILLIONS of dollars of lost tax revenue annually.

Even corporate payroll deductions for politics (which are voluntary and would be banned under Prop 32) are treated as after-tax dollars.  ALL such contributions for politics are not deductible — unless you are a dues-paying labor union member.

Let’s level the playing field.  ALL political contributions should be with after-tax dollars. End the unions’ huge secret tax loophole.

Vote YES on Prop 32.