Pelosi slams company bonuses as 'crumbs' despite once praising $40 tax cut

[goodwithagun]

Lukas Mikelionis, January 15, 2018

House Minority Leader Nancy Pelosi on Thursday slammed President Trump’s tax reform that led to companies giving as large as $2,000 bonuses as “crumbs,” despite praising Obama-era $40 tax cut to workers as a “victory for America” in 2011.

Following the passage of sweeping tax cuts, including lowering the corporate tax from 35 percent to 21 percent, multiple companies have given out bonuses and pay rises for its workers amid anticipating tax savings.

The article continues http://www.foxnews.com/politics/2018/01/15/pelosi-slams-company-bonuses-as-crumbs-despite-once-praising-40-tax-cut.html

[goodwithagun]

Grandma needs a checkup from the neck up.

[mountaineer]

To someone with over $100 million socked away, $2,000 is just a crumb. To most of America, however, it represents being able to pay huge wintertime utility bills, make a car or rent payment, purchase clothing for the children and other things she would consider irrelevant.

[Applewood]

Grandma needs a checkup from the neck up.

I'm reasonably sure everything including the brain is paralyzed from all those Botox injections.

[Applewood]

To someone with over $100 million socked away, $2,000 is just a crumb. To most of America, however, it represents being able to pay huge wintertime utility bills, make a car or rent payment, purchase clothing for the children and other things she would consider irrelevant.

That's the problem with politicians.  Once they "make it" -- even if they started out humble -- they become so far removed from the struggles of ordinary people, they don't realize that even a thousand dollars can go a long way to alleviate those struggles.   We common folk don't have other people's money to spend on lavish vacations, fancy homes, fancy cars and so on.  When we get a little money, we pay our expenses and obligations.  Politicians don't have those things to worry about, so they never understand.

[edpc]

When I get quarterly bonuses, they’re taxed much higher than my regular pay.  I’d like my crumbs back, please.  She obviously doesn’t need them.

[WingNot]

Grandma needs a checkup from the neck up.

With all her Nips, Tucks and lLifts they will be able to do a pap smear.

[InHeavenThereIsNoBeer]

When I get quarterly bonuses, they’re taxed much higher than my regular pay.  I’d like my crumbs back, please.  She obviously doesn’t need them.

Withheld at a higher rate, not taxed.

I know, you probably know that, but I've heard a lot of people say otherwise.

[edpc]

Withheld at a higher rate, not taxed.

I know, you probably know that, but I've heard a lot of people say otherwise.

I adjust my deductions during the year so they owe me very little or I pay very little.  The amount either way doesn’t approach what’s taken from one bonus.  To me, it’s taxed.

[RetBobbyMI]

Grandma needs a checkup from the neck up.

She just needs to check out...for good.

[The_Reader_David]

Withheld at a higher rate, not taxed.

I know, you probably know that, but I've heard a lot of people say otherwise.

Actually, yes, taxed at a higher rate:  a bonus will be taxed (and withheld) on the basis of the top marginal rate applicable to the earner, while the base pay is taxed (and withheld) on the basis of all the rates from 0 (the amount up to the exemption) up to the earner's top marginal rate.

The bonus is most likely taxed at the same rate as the last marginal dollars in the base pay (though it could be higher if it pushes the total earnings into another bracket), but this will be higher than the average effective rate on the base pay.

(Ah the wonders of "progressive" taxation...)

[RetBobbyMI]

Actually, yes, taxed at a higher rate:  a bonus will be taxed (and withheld) on the basis of the top marginal rate applicable to the earner, while the base pay is taxed (and withheld) on the basis of all the rates from 0 (the amount up to the exemption) up to the earner's top marginal rate.

The bonus is most likely taxed at the same rate as the last marginal dollars in the base pay (though it could be higher if it pushes the total earnings into another bracket), but this will be higher than the average effective rate on the base pay.

(Ah the wonders of "progressive" taxation...)

That's your illustrious elected representative could "pay" for their lost income (revenue) from the reduced rates they gave you on the base pay.

[InHeavenThereIsNoBeer]

Actually, yes, taxed at a higher rate:  a bonus will be taxed (and withheld) on the basis of the top marginal rate applicable to the earner, while the base pay is taxed (and withheld) on the basis of all the rates from 0 (the amount up to the exemption) up to the earner's top marginal rate.

The bonus is most likely taxed at the same rate as the last marginal dollars in the base pay (though it could be higher if it pushes the total earnings into another bracket), but this will be higher than the average effective rate on the base pay.

(Ah the wonders of "progressive" taxation...)

At the end of the year, the bonus and regular wages contribute equally in the AGI calculation.

However, many people think that when they see a higher withholding rate on a check that includes a bonus (or overtime), they are "paying more in taxes", even if the extra money does not "push them into a higher bracket" (another common misunderstanding  - a comment that's not directed at you but the people that don't understand how the brackets work and actually think you could lose money by "moving" into a higher bracket).

At the same time, no one has ever accepted my offer to take the money and pay the taxes on it.