Carve-out allows workers to deduct 100 percent of dues from income taxes
Union members will be able to fully deduct dues payments from their taxes thanks to a carve-out adopted by Democrats.
Democratic Gov. Andrew Cuomo, who received $4.4 million from organized labor groups over the course of his political career, signed off on a new budget that will allow union members to write off 100 percent of their dues or agency fees from their personal income taxes. The tax break is expected to return $35 million to members in 2018 and has generated controversy in the state.
Brian Sampson, president of Associated Builders & Contractors Empire State Chapter—an industry group for non-union construction workers and businesses—said that he expects the legislation to cost workers money in the short term, while boosting union coffers. The full write-off would give unions an incentive to hike dues and fees for workers, knowing that they will eventually get the money back.