In the past several months, the Tax Cuts and Jobs Act has encouraged over 450 companies to announce pay increases, bonuses, or increased employee benefits. Approximately 4 million workers have already received tax reform bonuses, and the number is increasing by the day.
The economy also added 300,000 jobs in February, unemployment is at a 17 year low, and more than 90% of Americans have already seen more money in their paychecks.
Despite these benefits, Democrats have consistently attempted to undermine and dismiss the positive impacts of tax reform. Not a single Democrat voted to cut taxes for Americans, and they are now downplaying any benefits from the law.
Minority Leader Nancy Pelosi (D-Calif.), who has a net-worth of approximately $30 million, famously derided tax cuts for the middle class as “crumbs.” Pelosi has also called the bonuses companies are giving to employees as a result of the tax bill “pathetic.”
The median income in 2017 was $59,039, so a typical Trump tax reform bonus of between $1,000 and $2,000, is money that an American family can use to pay bills, buy groceries, or put gas in the car.
Congressman Todd Rokita (R-Ind.) has introduced legislation to allow the millions of Americans who have received tax reform bonuses to keep what they’ve earned. H.R. 5012, the Creating Real and Useful Middle-Class Benefits and Savings (CRUMBS) Act, would exempt bonuses up to $2,500 from taxable income.
The CRUMBS Act builds on the success of the Tax Cuts and Jobs Act by letting workers keep their bonuses tax-free. All members of Congress should support this important legislation.
[View ATR’s letter of support for H.R. 5012 here]