Following the announcements by Comcast and AT&T to offer bonuses to their employees at the end of December due to the passage of President Trump’s tax plan, over a hundred more companies have now followed their lead, all due to the economic advantages and savings that the new tax plan delivers to American corporations.
Following the passing of President Trump’s signature tax bill, which significantly cuts the corporate tax rates in America, AT&T followed by Comcast were among the first companies to announce the paying of thousands of dollars in bonuses to their employees due to Trump’s tax plan.
Telecom giant AT&T was quick to respond to news of U.S. tax reform, announcing it would give some employees bonuses once the legislation is signed into law.
AT&T said in a press release Wednesday that it would give more than 200,000 of its U.S. workers who are union members a special bonus of $1,000. The company also increased its capital expenditures budget by $1 billion in the U.S.
Cable and media company Comcast made a similar move: it announced it would give special $1,000 bonuses “[b]ased on the passage of tax reform and the FCC’s action on broadband.” Those bonuses would apply to more than 100,000 employees that are eligible and not in executive roles.
Now, even more companies are offering incentives to their employees thanks to the significant benefits of Trump’s tax plan to American businesses, which will allow them to better compete with foreign corporations.
To date there are now over 100 companies that have announced bonuses, wage increases or both since the passage of the tax bill.
Airlines such as Southwest, American and Boeing have been particularly excited for the tax plan’s corporate tax cuts and have reflected that anticipation in hundreds of millions in bonuses, charitable donations and investments in company growth.
Boeing — $100 million in charitable donations; $100 million for workforce development; $100 million for infrastructure and facilities.
“On behalf of all of 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,” said [Boeing CEO Dennis] Muilenburg. “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
American Airlines — $1,000 bonuses for every employee (excluding officers). The bonuses will total $130 million. AA had 127,600 employees as of Sept. 2017.
We are pleased to announce that in light of this new tax structure and in recognition of our outstanding team members, American will distribute $1,000 to each team member (excluding Officers) at our mainline and wholly owned regional carriers. These distributions will total approximately $130 million and will be made in the first quarter of 2018.” – American Airlines press release.
Southwest Airlines — $1,000 bonuses for all 55,000 employees; $5 million additional charitable donations
“We applaud Congress and the President for taking this action to pass legislation, which will result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular,” said Southwest’s Chairman and Chief Executive Officer Gary Kelly. “We are excited about the savings and additional capital, which we intend to put to work in several forms—to reward our hard-working Employees, to reinvest in our business, to reward our Shareholders, and to keep our costs and fares low for our Customers.” – Southwest Airlines press release.
The benefits for employees due to the new tax plan does not end at airlines, as several of the nation’s largest banks have not only announced bonuses, but have also gone as far as to increase their base wages to $15.00 per hour, something that those on the left along with Democrat politicians have been pushing for in recent years.
Bank of America — $1,000 bonuses to 145,000 U.S. employees.
“Beginning in 2018, we will see benefits from the tax reform, too, in the form of lower corporate tax rates.
In the spirit of shared success, we intend to pass some of those benefits along immediately. U.S. employees making up to $150,000 per year in total compensation – about 145,000 teammates – will receive a one-time bonus of $1,000 by year-end.” – CEO Brian Moynihan
U.S. Bancorp – $1,000 bonuses for 60,000 employees; base wage hike to $15 per hour; $150 million charitable contribution.
Wells Fargo – raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over next three years.
“Our announcement was directly related to the passage of tax reform.” — Arati Sontakay Randolph, Wells Fargo senior vice president.
While Democrat politicians have rallied their voters on promises to force businesses to pay their employees a “living wage” of $15/hr, they have failed to realize that passing laws to make a business pay a higher wage will only result in crippling both small businesses and their employees, as they will only push towards further automation of their production processes and finding ways to minimize work hours.
However, as with Trump’s tax plan, providing beneficial market conditions for businesses to succeed while limiting burdensome corporate tax rates as well as regulations, will enable companies to increase their pay rates naturally, which will allow them to offer more benefits to their employees without having to find ways to cut their staff or expansions to pay for it.
Insurance and financial institutions have also joined the fray of announcing benefits and bonuses for their employees, including increasing their employee 401k plan matching programs.
Aflac – increase 401(k) match from 50% to 100% on the first 4% of compensation plus one-time $500 contribution to every employee’s 401(k); $250 million increase in overall U.S. investment.
“We are pleased that these tax reforms provide Aflac with an opportunity to increase our investments in initiatives that reflect our company values; providing for our employees in the long and short term, ensuring future growth for our company and giving back to the community.” — Aflac Chairman and CEO Dan Amos
Citizens Financial Group — $1,000 bonuses for 12,500 employees and $10 million for charitable donations
“Corporate tax reform provides us with an opportunity to recognize the role our colleagues have played in delivering better results for customers and shareholders, and to positively impact the communities where we live, work and play,” said Bruce Van Saun, chairman and chief executive officer of Citizens Financial Group. – Citizens Financial Group press release.
Nationwide Insurance — $1,000 bonuses to 29,000 employees; increased 401(k) matching contributions for 33,000 employees
“The combination of the new tax legislation, including a reduced corporate tax rate, and our associates’ ongoing commitment to our members, community and On Your Side promise are the reasons we’re making this investment that further enhances the already robust benefits we offer to attract and retain the best talent.” – Nationwide Insurance statement
There are over 100 more companies that have announced bonuses, raises and benefits for their employees in 2018, crediting the passing of Donald Trump’s tax plan as the main reason for their actions, and this is happening before the actual benefits of the tax plan have even been put into place. Imagine how many more businesses will follow once they actually experience the benefits of a decrease in corporate tax rates, as well as the continued benefits of a raging economy that President Trump has managed to bring back to life after 8 years on life support under his predecessor Barack Obama.