Trump’s tax and spending plan may have quietly cut your salary and workplace benefits — here’s how

If you came back to work after the holidays and noticed some perks missing, it might be because of changes in Trump’s tax and spending plan. The law cut some tax deductions that companies used to get for certain things like snacks, meals, and charitable donations, so companies had to decide if they could still offer these benefits.

Deductions for bike commuting and most moving expenses were permanently removed. Now only active-duty military and some intelligence employees can get moving deductions, as stated by USA Today. For charitable donations, companies must now give at least 1% of their taxable income before they can claim a deduction, and they cannot deduct more than 10% of taxable income in a year.

Corporate charity changes

If a company gives less than 1% of taxable income, the deduction is lost forever. Amounts over the 10% limit can be carried over and deducted in future years for up to five years. Experts worry that small corporate donations will drop because companies giving less than 1% might stop giving entirely, which could cut billions from corporate charity overall.


Some companies have not cut charitable giving yet because other tax breaks, like 100% bonus depreciation for business assets, help offset the loss, as stated by USA Today. The deduction for food at work ended on Dec 31, 2025, so now any snacks, coffee, or company meals are taxed for employers, making companies think about whether to keep offering them.

Perks may stay but smaller

Studies show that free food at work makes employees more productive, so some big companies like Google may continue offering meals but might make them less fancy. Since deductions for moving and bike commuting are gone, any payments for these now count as taxable income for both the company and the employee. Employers may have to pay extra or explain the taxes to employees.

These deduction changes will raise billions in federal taxes over the next ten years, affecting company budgets and some employee perks, as noted by USA Today. Even if your salary didn’t go down, some benefits and perks you used to enjoy may now cost more or be removed because companies can’t deduct the expenses anymore.

FAQs

Q1. How did Trump’s tax plan affect employee perks?

Some workplace perks like free food, bike benefits, and moving expense deductions may now cost more or be removed because companies can’t deduct them.

Q2. Did corporate charitable donations change under the new tax rules?

Yes, companies must now give at least 1% of taxable income to deduct donations, which may reduce small corporate giving.