In addition to no taxes on tips, middle class families should not be subject to taxes on bonuses.
This could be placed for those below set thresholds of set household income levels. It would put a lot of money back into middle class families that receive profit sharing in the auto and many other industries that is currently taxed at an even higher rate then regular income tax.
Specifically many middle class families in the auto industry see thousands of dollars paid off profit sharing bonuses due to the higher rate they are taxed at. This also applies to many businesses that offer bonus incentives for achieving quarterly goals , safety bonuses for injury free performance, or attendance bonuses.
This specifically would help union works whole could see signing bonuses for many industries come contract time.
This is infeasible as the people setting the payroll policies will simply pay themselves a small salary and massive bonuses.
That is how Wall Street works today
I would think actually we could limit to bonus under $15,000 for say to target the middle class. We are talking auto workers, dock workers, service industry, manufacturing. That receive bonus for performance, safety or profit sharing for workers. I get an $8,0000 bonus for hitting goals but only see 6,000-6,5000 because of taxes.
Agreed, if Bonuses have to be taxed it should be done once a large minimum is hit if at all.
$5,000 bonus for me changes everything to help me but does very little in terms of margins. My bonus shouldn’t be dropped down to $3000 just from taxes.
Agree so much! Bonuses are taxed at a very high rate. Why do they get to keep so much of what I earned by working harder than what was expected of me? At a min, lower the rate of how much we are taxed on bonuses.
My husband is on salary and doesn’t get overtime, works his tail off every week to ensure his department is on time and under budget. He is bonuses on his performance and is always punished when bonus time comes around because a huge chunk of it goes to the state and federal government. With the no tax on overtime proposition it limits those who are on salary, like my husband. He works 10-20 hours “overtime” every week and doesn’t see the financial benefit for his extra work. Would love to see a no tax on bonuses for all the hard work he does to make his employer money.
Ever since President Trump announced his “no tax on tips or overtime” I’ve been thinking about this! I work as a retail manager that earns quarterly and yearly bonuses. We aren’t allowed OT and of course, i dont make tips. My bonuses are based off of merchandise sales, service sales and supply spending. I work hard to ensure that we try to meet our goals in all three areas. Its been tiresome though because so much of it goes to taxes. Typically I lose 30% of my bonus to the government. The government who hasnt really help me in anyway attain the goals we reach each quarter/year.