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house Bill H.R. 5012

CRUMBS Act: Should Bonuses Up to $2,500 This Year be Tax-Free for Individuals?

Argument in favor

To ensure that workers get the most out of the bonuses their employers awarded them due to tax reform, bonuses of up to $2,500 this year should be tax-free for federal tax purposes.

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02/17/2018
Bonuses should always be tax free. It's a gift that an employer gives an employee above and beyond their salary, and then the government steps in like a mob enforcer and demands a cut.
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Michael's Opinion
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02/17/2018
Make this permanent. I want big government to keep its hands out of my pockets. Seems like I pay almost as much in taxes as I do for food and housing. I struggle hard enough as it is living in a greedy entitlement state with three kids. If I get a bonus, let me keep it.
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Cara lea's Opinion
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02/17/2018
Well, since bonuses seem to have supplanted raises, folks should be able to keep every penny of it.
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Argument opposed

Congress shouldn’t allow bonuses of up to $2,500 to be tax-free this year as the government needs revenue. Alternatively, bonuses of that size should be permanently tax-free.

Chuck 's Opinion
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02/17/2018
Income is income and should be taxed regardless of what it is labeled
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Brian's Opinion
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02/17/2018
This is just an attempt to try and make people feel like they are getting a break. But let’s face it, it’s temporary. We ought not allow this administration manipulate the citizenry purely for political benefit. I will say if it does get done it ought be a permanent code.
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Seth's Opinion
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02/17/2018
Much like the recently-passed GOP Tax Scam, this is an attempt to curry short-term favor amongst voters at the cost of long-term government solvency at a time wherein the entire Republican Party's popularity is at near historic lows. Those attempting to pass the bill now are aware, due to polling and recent electoral results, of the fact that there will likely be a Democrat-controlled government by the time the bill comes due, and if they have somehow not yet been ousted, they'll either blame President Obama or Hillary Clinton.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Ways and Means
    IntroducedFebruary 14th, 2018

What is House Bill H.R. 5012?

This bill — the CRUMBS Act  — would make all bonuses received by individuals in 2018 tax-free up to $2,500 for federal tax purposes.

The bill’s full title is the Creating Real and Useful Middle-Class Benefits and Savings (CRUMBS) Act. The acronym is a reference to a comment made by House Minority Leader Nancy Pelosi (D-CA), who derided the bonuses given by businesses to hundreds of thousands of employees because of the Republican tax reform law as “crumbs”: “In terms of the bonus that corporate America received versus the crumbs that they are giving to workers to kind of put the schmooze on is so pathetic.”

Impact

Workers receiving bonuses; and the IRS.

Cost of House Bill H.R. 5012

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Rep. Todd Rokita (R-IN) introduced this bill to make bonuses received in 2018 tax-free up to $2,500 to help lower and middle-class families:

“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. 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.”

This legislation has the support of three cosponsors, all of whom are Republicans.


Media:

Summary by Eric Revell

(Photo Credit: solidcolours / iStock)

AKA

Creating Real and Useful Middle-Class Benefits and Savings (CRUMBS) Act of 2018

Official Title

To provide further tax relief for Americans receiving bonuses.

    Bonuses should always be tax free. It's a gift that an employer gives an employee above and beyond their salary, and then the government steps in like a mob enforcer and demands a cut.
    Like (157)
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    Income is income and should be taxed regardless of what it is labeled
    Like (98)
    Follow
    Share
    This is just an attempt to try and make people feel like they are getting a break. But let’s face it, it’s temporary. We ought not allow this administration manipulate the citizenry purely for political benefit. I will say if it does get done it ought be a permanent code.
    Like (84)
    Follow
    Share
    Make this permanent. I want big government to keep its hands out of my pockets. Seems like I pay almost as much in taxes as I do for food and housing. I struggle hard enough as it is living in a greedy entitlement state with three kids. If I get a bonus, let me keep it.
    Like (67)
    Follow
    Share
    Much like the recently-passed GOP Tax Scam, this is an attempt to curry short-term favor amongst voters at the cost of long-term government solvency at a time wherein the entire Republican Party's popularity is at near historic lows. Those attempting to pass the bill now are aware, due to polling and recent electoral results, of the fact that there will likely be a Democrat-controlled government by the time the bill comes due, and if they have somehow not yet been ousted, they'll either blame President Obama or Hillary Clinton.
    Like (65)
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    Stupid repugnantican propaganda. We need to support our nation. Who’s going to pay infrastructure education health. These are one of the staples of a well running nation. We know the rich are’t paying their fair share.
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    Well, since bonuses seem to have supplanted raises, folks should be able to keep every penny of it.
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    Why the heck not??? Pass the H.R. 5012 AKA the CRUMBS ACT To ensure that workers get the most out of the bonuses their employers awarded them due to tax reform, bonuses of up to $2,500 this year should be tax-free for federal tax purposes. To ensure that workers get the most out of the bonuses their employers awarded them due to tax reform, bonuses of up to $2,500 this year should be tax-free for federal tax purposes. SneakyPete..... 👍🏻🤨🧐👍🏻. 12*26*18......
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    These bonuses are income and should be taxed. Using this one-time, hypocritical act by greedy, corrupt corporations as a political tool is unconscionable. Way back in the day when corporations cared about their employees and rewarded them with bonuses, taxes were paid on every cent received. These should be no different. If this is done, every American worker NOT receiving a bonus should be able to deduct an extra $2500 off their income this year to level the playing field. Of course, you are not interested in leveling the playing field. You are interested in self-promotion, misinformation campaigns and promoting the severe partisan divide. This is evident in the title of the bill as a negative shout-out to a comment made by a member of the minority. When will Congress stop widening the divide in this country, both politically and financially?
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    Yes, it’s a no brainer. Any of our hard earned money that we keep out of the hands of the politicians and bureaucrats is a win for the individual, their community and the economy as a whole.
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    I’d love my bonus to be tax free but I am sure it will just mean everyone will get more bonuses and less salary if you tax it differently. Then bonuses won’t really be bonuses anymore.
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    No, in my opinion this should not be treated any differently than anything else.
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    This is just the GOP trying to convince everyone that their wealthy tax giveaway will really help everyone. Companies give bonuses so they don't have to give you a real raise.
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    We are so heavily taxes in every aspect of our lives. Throw us a bone.
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    40% taxes on a bonus is utterly ridiculous. Tax it the same as regular income but not a dollar more.
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    ALL income should be tax free.
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    Only if they tax ALL of the increased income generated for the wealthy by the tax scam. One time bonuses, taxed or not taxed, won’t save the middle class in America.
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    Make it permanent
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    djt & the do nothing but give themselves a tax cut congress have given the middle class a BIG nothing burger. My tax “cut” has given me a $13 a week raise. That does not even pay for half of my monthly subway pass.
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    This bill is meant to distract us make us feel like we got a win for the working class under tax reform. What we need is to repeal the tax bill that shifted burden from the most wealthy to the working and middle classes in the first place. Don’t be fooled when the millionaire puts a dollar in your hand while taking 5 out of your wallet.
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