This bill doesn’t address the problem most people have with bonuses. Bonuses are not taxed higher than any other W2 income, but they are subject to higher withholding, meaning the IRS gets a higher percentage up front. According to the bill, bonuses up to $2500 are “not considered taxable earnings” toward the “employee’s Federal tax liabilities.” Under this bill, the bonus would still be subject to the increased withholding, so if there is any benefit, you wouldn’t know it until tax time.