I am a boss, working in county government. I have 14 direct reports and they have always been very wonderful about recognizing me on Bosses Day and at Christmas. I have received gift baskets: last year for Christmas it was a wonderful beach bag filled with goodies as I was about to embark on a winter beach vacation. Also, I have gotten gift certificates for spas, restaurants and clothing stores. I always appreciate the gesture, and always immediately send a thank you card and thank each personally.
I purchase Christmas gifts every year (this year it will be monogrammed mirror compacts in a leather case...my staff happen to all be women), and also recognize my staff throughout the year. Recently I took my team out for breakfast. I bake treats and regularly give thank you/appreciation and birthday cards. Sometimes I will make mini treat baskets "just because". I have also given each a mini flower in a mini vase to remind them how much I appreciate each of them. I also recognize my boss at Christmas and for Bosses Day with a gift, or lunch out, etc. All of this is done out of my own pocket and I never use my work budget (i.e., your tax dollars) for such things. I have never written these items off on my taxes. I do these things because I truly value those I work with and I do it from my heart. And believe me, as a government worker I am not rolling in dough!
I would never "expect" anything from my staff, and would continue to give them gifts even if they chose to stop doing the same for me. I really feel that if people don't like their boss, or don't want to spend their money on their boss, they shouldn't. A gift really isn't a gift unless it is meant in that spirit.