A bill that would have given California union members a break on their state income taxes isn’t going to make it this year.
Assemblyman Adam Gray, D-Merced, wrote Assembly Bill 2577 to let union members deduct their union dues on state income tax returns. It had backing from law enforcement unions and labor organizations that represent private-sector workers, such as the AFL-CIO.
His bill cleared the Assembly by a 64-11 vote and had favorable votes in Senate committees. The Senate Appropriations Committee chose to hold it last week. Gray’s spokesman on Wednesday conceded the bill would not advance to a final floor vote.
Gray and supporters cast the bill as effort to help unions after the Supreme Court in June handed down a decision in Janus vs. AFSCME that cuts their revenue by banning public sector unions from collecting so-called “fair share” fees from workers who don’t choose to belong to them.
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Gray’s bill might have given union members an incentive to stick with their labor organizations, but it came with a hefty cost. The Franchise Tax Board estimated that it could have reduced state tax revenue by $250 million this budget year.