GOP rep unveils 'Crumbs Act' to make bonuses tax-free, in swipe at Pelosi

[Right_in_Virginia]

GOP rep unveils 'Crumbs Act' to make bonuses tax-free, in swipe at Pelosi
Fox News, Feb 13, 2018, Samuel Chamberlain

Rep. Todd Rokita, R-Ind., has dubbed his bill the "Creating Relief and Useful Middle-Class Benefits and Savings" -- or "CRUMBS" Act. Pelosi, D-Calif., famously referred to the bonuses as "crumbs" in criticizing the tax plan last month.

"Americans are receiving thousands of dollars in bonuses and more money in their paychecks thanks to President Trump's tax reform, but out-of-touch Democratic leaders believe they only amount to crumbs," Rokita said in a statement. "The CRUMBS Act will let Americans keep more of the money they receive as a result of President Trump's tax reform, and allow them, not the government, to choose how best to spend their bonuses

Rokita's bill would make bonuses received by workers in 2018 tax-free up to $2,500. Since tax reform was signed into law this past December, multiple companies have given out bonuses and pay raises in anticipation of increased tax savings.

According to a tally by Americans for Tax Reform, 346 companies have given workers bonuses or raises or increased contributions to employees' 401(k). Those companies include AT&T, which gave $1,000 bonuses to 200,000 employees; automaker Fiat Chrysler, which gave at least 60,000 workers bonuses worth up to $2,000; and moving company U-Haul, where more than 28,000 full and part-time employees received bonuses ranging from $500 to $1,200.


http://www.foxnews.com/politics/2018/02/13/gop-rep-unveils-crumbs-act-to-make-bonuses-tax-free-in-swipe-at-pelosi.html

[libertybele]

While, I haven't taken the time to look up the actual bill and the wording, I'm wondering if this bill would also apply to the CEO's and other 'workers' who get mega bonuses every year.

[Bigun]

I would make ALL of everyone's income, from whatever source derived, completely tax free until you spend it!  And My method of taxation does not require the existence of the IRS at all!

http://fairtax.org

[Neverdul]

While, I haven't taken the time to look up the actual bill and the wording, I'm wondering if this bill would also apply to the CEO's and other 'workers' who get mega bonuses every year.

“Rokita's bill would make bonuses received by workers in 2018 tax-free up to $2,500.”

I couldn’t find any text of the bill.

Would a company have to prove or document somehow that the bonus was directly related to the tax cut and not due to some other existing bonus plan? Would this be in the form of a personal 1040 tax deduction when filing one’s 2018 taxes? Because I don’t see how an employer could reasonably remedy making it tax free to the employee if they’ve already paid it and withheld taxes on it.  And as a payroll professional, that would be a nightmare.

And I assume this would this only apply to federal tax and not to payroll taxes (SS and Medicare)? It certainly wouldn’t effect state and local taxes unless a state legislature passed a similar bill.

I think this is more a publicity stunt and a well deserved jab at Polisi, rather than something that’s actually going to happen.   

[jmyrlefuller]

I would make ALL of everyone's income, from whatever source derived, completely tax free until you spend it!  And My method of taxation does not require the existence of the IRS at all!

http://fairtax.org

So who collects it then?

[Bigun]

So who collects it then?

The states! And they would be compensated for doing so.

[Oceander]

I would make ALL of everyone's income, from whatever source derived, completely tax free until you spend it!  And My method of taxation does not require the existence of the IRS at all!

http://fairtax.org

Like I said elsewhere, you believe in unicorns. 

[jmyrlefuller]

The states! And they would be compensated for doing so.

So now we've added an additional layer of inefficiency and opportunity for corruption, and there still needs to be an IRS to collect it from the states.

Not to mention the other convolutions this scheme requires, including the biggest of all: the basic income guarantee built into it under the disguise of the "prebate" to make it more palatable to the leftist progressives.

[Bigun]

So now we've added an additional layer of inefficiency and opportunity for corruption, and there still needs to be an IRS to collect it from the states.

Not to mention the other convolutions this scheme requires, including the biggest of all: the basic income guarantee built into it under the disguise of the "prebate" to make it more palatable to the leftist progressives.

@jmyrlefuller

I have always found it best to know a little something about what I'm talking about before I chime in.  Just sayin.

[To-Whose-Benefit?]

@jmyrlefuller

I have always found it best to know a little something about what I'm talking about before I chime in.  Just sayin.

Now that thar, young fella, is one fine peece of Dee-plomacy.

In English?

You cut 'em more slack than I would.

[InHeavenThereIsNoBeer]

“Rokita's bill would make bonuses received by workers in 2018 tax-free up to $2,500.”

I couldn’t find any text of the bill.

Would a company have to prove or document somehow that the bonus was directly related to the tax cut and not due to some other existing bonus plan? Would this be in the form of a personal 1040 tax deduction when filing one’s 2018 taxes? Because I don’t see how an employer could reasonably remedy making it tax free to the employee if they’ve already paid it and withheld taxes on it.  And as a payroll professional, that would be a nightmare.

And I assume this would this only apply to federal tax and not to payroll taxes (SS and Medicare)? It certainly wouldn’t effect state and local taxes unless a state legislature passed a similar bill.

I think this is more a publicity stunt and a well deserved jab at Polisi, rather than something that’s actually going to happen.

Probably just need to ensure that it shows up as a separate line item "Crumbs bonus?" so that the employee can take a deduction from AGI at the end of the year.  I don't see any reason to adjust withholding, let it come out in the wash.

I wouldn't put it past them to only allow the deduction for those who itemize, so most people will think they got it tax-free but didn't.

[Oceander]

Probably just need to ensure that it shows up as a separate line item "Crumbs bonus?" so that the employee can take a deduction from AGI at the end of the year.  I don't see any reason to adjust withholding, let it come out in the wash.

I wouldn't put it past them to only allow the deduction for those who itemize, so most people will think they got it tax-free but didn't.

Since miscellaneous itemized deductions, with the exception of charitable contributions, were repealed by the Trump tax “reform” there isn’t much itemizing now. 

[anubias]

I love it!  I’ll be sure to give myself a $2500 bonus this year.   

[Formerly Once-Ler]

I think this is more a publicity stunt and a well deserved jab at Polisi, rather than something that’s actually going to happen.

What a spectacle.  Hilarious.  Well worth the price of admission.  If you can't fix problems like Obamacare, immigration, entitlements, and the decay of our society...at least give me a chuckle, and a target I can hate more than the ones in charge.

"Crumbs," what a douche bag.   :broc: :Odance:

[anubias]

What a spectacle.  Hilarious.  Well worth the price of admission.  If you can't fix problems like Obamacare, immigration, entitlements, and the decay of our society...at least give me a chuckle, and a target I can hate more than the ones in charge.

"Crumbs," what a douche bag.   :broc: :Odance:

I get your point, but I enjoyed the laugh.