Referred to the House Committee on Ways and Means.
Creates a new tax deduction for bonuses: individuals may deduct up to the lesser of their bonus or 15% of their non-bonus wages from the same employer. The deduction phases out for taxpayers above specified AGI thresholds ($200k joint, $150k HOH, $100k single), is not available after December 31, 2029, and requires withholding-table adjustments.
Liberals stress fairness and prefer targeted refundable supports instead
Relative to its intended legislative type, this bill is a straightforward statutory amendment that creates a new, temporary individual-income tax deduction for certain bonuses and supplies the principal conforming changes and an effective date.
Creates a new tax deduction for bonuses: individuals may deduct up to the lesser of their bonus or 15% of their non-bonus wages from the same employer.
The deduction phases out for taxpayers above specified AGI thresholds ($200k joint, $150k HOH, $100k single), is not available after December 31, 2029, and requires withholding-table adjustments.
The deduction is added to rules allowing deductions for non-itemizers and excluded from certain itemized-deduction limits.
A modest, temporary tax break with built-in limits improves prospects, but revenue impact and need for agreement between chambers reduce likelihood.
Relative to its intended legislative type, this bill is a straightforward statutory amendment that creates a new, temporary individual-income tax deduction for certain bonuses and supplies the principal conforming changes and an effective date. It provides reasonable procedural direction to Treasury for withholding implementation but leaves several technical and administrative specifics undefined.
Liberals stress fairness and prefer targeted refundable supports instead
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals stress fairness and prefer targeted refundable supports instead
A progressive would see modest help for middle-income workers who receive bonuses but worry about fairness and missed opportunities.
They may prefer direct wage increases, stronger labor protections, or refundable credits targeted to low-income workers.
The AGI phaseouts and sunset reduce benefits to the highest earners but raise questions about revenue offsets.
A moderate would view this as a modest, time-limited tax incentive to support compensation through bonuses.
They would want clarity on budgetary impact and administrative simplicity before full support.
The AGI limits and sunset make it more politically palatable, but implementation details matter.
A mainstream conservative would likely favor the bill as pro-worker tax relief that encourages employer bonuses and reduces tax burdens.
They may prefer permanence and broader tax reductions but appreciate the deduction and AGI phaseouts limiting benefits to lower earners.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
A modest, temporary tax break with built-in limits improves prospects, but revenue impact and need for agreement between chambers reduce likelihood.
The bill has not accumulated any surfaced votes yet.
Liberals stress fairness and prefer targeted refundable supports instead
A modest, temporary tax break with built-in limits improves prospects, but revenue impact and need for agreement between chambers reduce li…
Relative to its intended legislative type, this bill is a straightforward statutory amendment that creates a new, temporary individual-income tax deduction for certain bonuses and supplies the principal conforming chang…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.