A Republican lawmaker is set to unveil legislation that would induce most bonuses given out as a result of President Trump’s tax reform plan tax-free — and took a jab at House Minority Leader Nancy Pelosi with the bill’s name.
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 blaming the tax plan last month.
“Americans are receiving thousands of dollars in bonuses and more fund 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 maintain more of the money they receive as a result of President Trump’s tax reform, and allow them , not the government, to select how best to expend their bonuses
Rokita’s bill would induce bonuses received without workers in 2018 tax-free up to $2,500. Since tax reform was signed into statute 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 please give employees bonuses or creates or increased contributions to employees’ 401( k ). Those corporations include AT& T, which dedicated $1,000 bonuses to 200,000 employees; automaker Fiat Chrysler, which devoted 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.