Corporations Already Passing Tax Cut Benefits Along to Employees

So much winning.

12.20.2017

News

Tax reform passed in Congress today and we are all still alive (for the moment) despite dire predictions from the left. Some corporations benefiting from tax cuts have promised to pass those benefits along to employees once the bill is signed into law.

AT&T has announced that they will pay $1,000 bonuses to more than 200,000 employees as well as investing $1 billion in the United States next year. They say that those who will receive the bonuses aren't company bigwigs, but "union-represented, non-management, and front-line managers." CEO Russell Stephenson directly credited tax reform with their ability to do this:

Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world. This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.

President Trump responded by saying "this just came out...AT&T plans to increase U.S. capital spending $1 billion and provide $1,000 special bonus to more than 200,000 U.S. employees, and that's because of what we did."

Boeing says that the tax cut will allow them to invest $300 million in workforce training and facilities enhancements as well as charitable giving. $100 million will be spent on workplace development (which includes training, education, and other forms of development), $100 million will go towards "workplace of the future" improvements, and the final $100 million will support Boeing's charitable initiatives, which include education, community development, and programs to support veterans and the military.

Boeing CEO Dennis Muilenburg also credited today's tax reform, saying “Each of these investments benefits Boeing’s most important strength – our employees – and reflects the real-time impact and economic benefit of the reforms." He continued:

On behalf of all our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States. It’s the single most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.

Another company that has already pledged to help their employees thanks to tax reform is Comcast, which will also bonus employees. The telecom giant says they will award $1,000 bonuses to more than 100,000 non-executive employees and spend more than $40 billion in the next five years on investments that are expected to, according to Chairman and CEO Brian L. Roberts, create "thousands of new direct and indirect jobs." Comcast said that they are able to do this "based on the passage of tax reform and the FCC's action on broadband."

Fifth Third Bank also announced that tax reform benefits will be passed on to employees. In addition to distributing $1,000 bonuses to more than 13,500 employees, they are also raising their minimum wage to $15 per hour. President and CEO Greg Carmichael said "It is good for our communities, employees and Fifth Third Bank."

Finally (for now), is Wells Fargo, which will also be raising their minimum wage to $15 an hour (from $13.50). In addition, they are planning to donate $400 million to community and nonprofit organizations next year.

Tax reform managed immediately to raise the minimum wage, support communities, and give people a bonus. That is the natural result of business doing well. Can't wait for the left to try to spin this one (if we're still alive to see it. I know we're all supposed to perish from the lack of taxation any time).