Widget Image
Follow PPD Social Media
Monday, June 24, 2024
HomeNewsCompaniesU.S. Businesses Announce Wage Increases, Bonuses, Hirings After Tax Reform

U.S. Businesses Announce Wage Increases, Bonuses, Hirings After Tax Reform

President Donald J. Trump speaks during a celebratory bill passage event following the final passage of the Tax Cuts and Jobs Act by Congress. (Photo: AP)
President Donald J. Trump speaks during a celebratory bill passage event following the final passage of the Tax Cuts and Jobs Act by Congress. (Photo: AP)

President Donald J. Trump speaks during a celebratory bill passage event following the final passage of the Tax Cuts and Jobs Act by Congress. (Photo: AP)

Within hours of final passage of the Tax Cuts and Jobs Act in the U.S. Congress, U.S. businesses began announcing wage increases, bonuses and investments. The first overhaul to the U.S. tax code in more than 31 years will slash the corporate tax rate from the highest in the developed world to 21%, a policy data show does boost wages.

AT&T was first to announce it would pay bonuses of $1,000 to more than 200,000 U.S. employees in response to tax reform. The telecommunications giant previously said it would invest $1 billion in the U.S. if “competitive” tax reform was passed, and that the Tax Cuts and Jobs Act would increase demand for their services.

AT&T said all union-represented and non-management employees, as well as front-line managers, will receive bonuses. They also announced that they will move forward with their plan to invest an additional $1 billion in the U.S. next year.

“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,” CEO Randall Stephenson said in a statement. “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.”

The company will cut the bonus checks over the holidays if President Donald J. Trump signs the tax bill before Christmas, as he is expected to do. Democrats are threatening to shutdown the government if the bill is signed before Christmas, as it could trigger automatic cuts to domestic spending.

Fifth Third Bancorp (NASDAQ: FITB) based in Cincinnati, Ohio, followed up with an announcement that it will pay more than 13,500 employees a bonus and raise the minimum wage for its workforce to $15 after the passage of the president’s signature tax cut and reform plan.

“It is good for our communities, employees and Fifth Third Bank,” said CEO Greg Carmichael in a statement.

Fifth Third said the tax cut allowed it to reevaluate its employee pay and pass along some of the windfall. Nearly 3,000 workers will see hourly wages rise to $15.00, a noteworthy milestone. Leftwing protestors and supporters of the minimum wage have long-cited the marker as a “living wage,” but government coercion has had a negative impact on the labor market.

The $1,000 one-time bonus is expected to be paid by the end of this year if President Trump signs the bill by Christmas.

Boeing (NYSE: BA) also announced that it would invest/donate $300 million to causes that they say will benefit their employees ($100M corporate giving, $100 workforce development and another $100 for facilities). FedEx (NYSE: FDX) CEO Frederick W. Smith said tax reform will boost their profits by more than $1 billion. In return, they will expand, hire and boost wages.

UPDATE: Comcast just arrived to the party, too. Following shortly after, Wells Fargo.

“Based on the passage of tax reform and the FCC’s action on broadband,” Comcast is giving “special $1,000 bonuses to more than 100,000 eligible frontline and non-executive employees.”

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Latest comments

  • Way better than govt mandated increases…

  • As a lot more people explored ways of working from your
    comfort of their home, online business seems your best option for most.
    It is very important in case of organic SEO campaign where results trickle
    in stages more than a long period of time. When you live outside these countries you
    then end up with little surveys to fill.

  • Do you seriously think the American people are that stupid?

    This tax cut is all about the corporations’ profits. They have been making record profits for years and have always had the money to give their employees the raises they deserve. They simply choose to pocket it for themselves. And now Trump is making a huge money grab for his ilk before he gets “impeached” or whatever other parachute they can use to get him out once his work is done.

    Nobody is fooled for a minute. The American people are not that stupid.

    Oh wait…

  • Looking for a new position with good salary seems
    to become a hardcore task nowadays. There are many blog
    networks around that enable you to submit your site content and advertise
    your blog. A blog writing service knows the way to spark a persons vision for the products and services, that may
    drive more traffic and result in higher revenues for your business.

  • On how he thinks his valuables were stolen since in deed he had the top
    turn in the fight, Constance said it was probable that other
    members in the gang that didn’t take part in your dream may have sneaked
    in his room whilst the battle occuring making away
    together with his belongings. An eyewitness account by the Independent’s Andrew
    Buncombe, who had been shot while taking refuge with 1,
    500 ‘red shirt’ protesters in a temple – a supposed safety
    – received jibes being inside pay of Thaksin. Skinny Jeans – This piece will invariably remain stylish since its
    flatters all body shapes and sizes.

  • ” Not being a philosopher or a physicist, I’m not planning to learn about that subject on the net, but I can tell you that, from the marketing standpoint, the web marketing effect for the business mentioned above was a big fat zero. In breaking news from The Age, it is reported how the carbon tax will hit every single Australian which has a hefty cost of $40,000 by 2050 coming to a massive $1 trillion hit on the Australian economy. Possible complications inlcude drug reactions, infection, bleeding, or perforation of the gastrointestinal tract which might require surgery.

  • That is really nice to hear. thank you for the update and good luck

  • Thanks for such an amazing content. https://www.homatz.co.uk/

  • Thanks for such great information.

  • This is really interesting and worth reading your post. I should highly appreciate the efforts you put in. This is amazing and exciting. Thank you and good luck for the upcoming articles

  • It is a really good post here. Thanks for taking the time to post such as valuable information.

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial