CONGRESS FOR VOTERS

RepublicanBill · H.R. 557· House(119-HR-557)

Working Class Bonus Tax Relief Act of 2025

Rep. Bacon
Age: 63 years
Nebraska
Introduced
1/20/2025
Last activity
1/20/2025 — Referred to the House Committee on Ways and Means.
Sponsored by
Don Bacon
Cosponsors
None
Taxation
  1. Introduced
  2. In Committee

What this bill would do

The Working Class Bonus Tax Relief Act of 2025 seeks to amend the Internal Revenue Code of 1986. It aims to establish a new deduction for certain bonus amounts received by individuals. This deduction is limited to 15 percent of an individual's non-bonus wages from the same employer for the taxable year. The bill sets specific adjusted gross income limits for different filing statuses to qualify for the deduction. Additionally, the provision is scheduled to terminate for amounts received after December 31, 2029.

Yes

  • Would middle-income households be better off under this?+5

    Middle-income earners can benefit from the deduction of bonus amounts up to 15 percent of their regular wages.

  • Does this cut taxes for middle-income families?+5

    The bill provides a new deduction for bonuses that reduces taxable income for individuals earning below specific thresholds.

  • Would households on low incomes be better off under this?+3

    The deduction provides tax relief for households earning below the established income limits.

The opposite

  • Would high-income households be better off under this?-3

    Taxpayers with adjusted gross incomes exceeding specific thresholds are excluded from the bonus deduction.

  • Does this reduce what the federal government spends?-2

    The implementation of a new tax deduction reduces federal tax revenue.