Oregon’s two U.S. Senators are sponsoring a bill that would exempt strike fund payments from federal income tax.
Senators Ron Wyden and Jeff Merkley are among nine cosponsors of the bill, which was introduced by Sen. Ruben Gallego (D-Arizona).
Under current federal tax code, strike benefits — payments a worker receives from their union to replace all or part of their lost wages during a strike or lockout — are considered taxable income.
The Tax Cut for Striking Workers Act is supported by the AFL-CIO and major unions like AFSCME, UFCW, Teamsters, and Machinists.
Aside from a few exceptions, Oregon follows federal tax code to determine what is or isn’t included in taxable income, according to a spokesperson for the Oregon Department of Revenue. If a bill excluding strike pay from federal taxable income becomes law, Oregonians wouldn’t have to pay federal or state income tax on those funds (unless the state legislature decided otherwise).
