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

Fox News ^ | Feb 13 2018 | Samuel Chamberlain

[CurlyDave]

...Why just 2018? Bonuses are taxed at a much higher rate than regular pay. Somewhere between 30 and 40%. There is no justification for that. It is truly theft.

This is just plain not true.

There is no special line on the 1040 form for bonuses. They are taxed as ordinary income.

Now, because they are in addition to regular income, they are taxed at your marginal rate, which is higher than you average rate, but there is no special treatment of bonuses.

[CurlyDave]

...You're absolutely correct. Why is such a bonus considered special enough to take 40% and give it to the government?

It is not taxed at a special rate. It just looks that way because it is incremental income and is taxed at your marginal rate. Your normal paycheck appears to be taxed at your average rate which is always lower because we have a progressive tax system.

[ridesthemiles]

A cap of $2500 pretty much doesn’t help a CEO type. This helps the average worker who got these bonuses.

For a CEO who gets millions in bonuses, the $2500 CAP doesn’t help them at all........

Look at the numbers & rethink any opposition to this idea.

This places many DEMOCRATS who got bonuses from their employers into the position of perhaps rethinking who they want to support in the future. Pelosi took quite a swipe at all those hard working Dems.....I would have been pissed if I had been in her target range.

[ridesthemiles]

Been doing bookkeeping/accounting for over 60 years. Never heard of a bonus being taxes at a higher rate than the rest of my earned income.

[softengine]

I have seen my bonus checks last few years with more taxes coming out than my normal paycheck. I do not know the percentage, and do not keep hard copies of stubs around anymore (always goes to the burn bin). But yes, I do see more taxes coming out of my bonus checks than standard paycheck. I think, maybe a few years ago, I asked someone in HR who told me they were taxed at a higher rate.

http://www.businessinsider.com/why-bonus-taxed-high-2014-12

[Revel]

We still do have something called the national debt. This is unfair to people who earn extra money in other ways. Garbage only a liberal could come up with.

[Augie]

Class envy much?

Try reading the article next time.

[Sasparilla]

...Ha. Before Trump ‘pubbies would not have done this...

Before this President, Republicans were cowering jello shots. Not much better now. But, they are improving.

[cherry]

yeah, must be nice to get these mythical bonuses....and tax free too....

[a fool in paradise]

Mythical??
Fu ck you

https://www.forbes.com/sites/paulhodgson/2013/07/19/the-five-highest-cash-bonuses-in-ceo-america/#7ed413eb2848

We have seen which CEOs received the highest base salaries in America, now it is the turn of cash bonuses – often calculated as a multiple of base salary, so don’t be surprised if some of the same names crop up...

...already on an annual salary of $3 million, was paid a bonus that represented a contractual obligation of 0.25 percent of “stockholders’ equity” – the key performance metric used in the plan – which amounted to just over $29 million...

...The second highest bonus, which exceeded $27.5 million...

[Svartalfiar]

I have seen my bonus checks last few years with more taxes coming out than my normal paycheck. I do not know the percentage, and do not keep hard copies of stubs around anymore (always goes to the burn bin). But yes, I do see more taxes coming out of my bonus checks than standard paycheck. I think, maybe a few years ago, I asked someone in HR who told me they were taxed at a higher rate.

Not sure why HR is giving tax advice when they don't knew what they're talking about. Bonuses are just lumped in with the rest of your income. The only reason you would pay more taxes on your bonus would be if it slipped into a higher bracket. Now, the IRS does take more out of bonuses, since it's not regular income, they withhold at the highest rate, but come tax-time, you are NOT taxed at a higher rate.

[softengine]

"... they withhold at the highest rate,.."

This is what I'm talking about. Just had not phrased it right.

[crusty old prospector]

Either way, if a high-wage earner earns a bonus, he will donate 40% to the government. The same for restricted stock that vests. If it quacks like a duck, it is still a duck.

[CurlyDave]

Sure. This is the nature of an income tax.

There is no such thing as a special “bonus tax.”