Tax Cuts: Some CEOs Are Paying It Forward To Workers

Telecommunications giant AT&T said that it will give $1,000 special bonuses to more than 200,000 employees and invest an additional $1 billion in the US shortly after both the House and Senate passed the Republican tax plan, which, among other measures, lowers the corporate tax rate permanently to 21 percent from 35 percent, as of January 1, 2018. Specifically, the GOP Act will cut the corporate tax rate from 35 percent to 21 percent.

Comcast will be giving hundreds of thousands of employees $1,000 bonuses and investing $50 billion into jobs and infrastructure.

Wells Fargo said it will boost its minimum wage to $15 an hour, as well as donate $400 million to nonprofit and community organizations.

The company said it expected to distribute the bonuses by year-end, assuming Trump signs the bill by Christmas - which is not certain - and that the pay increases would go into effect once the bill became law.

The companies' announcements gave at least some support to claims by Trump and fellow Republicans that their tax bill would lead to more investment by US companies with the money they save.

And Fifth Third Bancorp., a regional bank based in Cincinnati, said it would boost its minimum wage for all of its almost 3,000 hourly employees to $15 as well as distribute a one-time bonus of $1,000 for more than 13,500 employees.

More: Face facts, America, Donald Trump is a success.

"You saw company after company after company yesterday come out and immediately start giving bonuses to their workers all across this country", White House press secretary Sarah Huckabee Sanders said Thursday on Fox News Channel. Do some of these companies have pressing business before the federal government and wish to curry favor with the Trump administration?

AT&T, for example, could do with some goodwill from the President as he remains a critic of the telecom giant's proposed $85bn merger with Time Warner.

Aerospace company Boeing Co BA.N also said on Wednesday it would invest $300 million in workforce training and facilities enhancements for employees as its CEO lauded the tax bill. The legislation, which is now on the move to the President's desk to be signed into law, represents the largest one-time tax reduction in US history, cutting an estimated $1.46 trillion in overall tax collections by the government.

Republican senators, House Speaker Paul Ryan and Trump praised the announcements.

"Throwing a few pennies to workers after a multibillion-dollar political windfall seems inefficient to me, but then again, I'm not in AT&T's PR department", said Matthew Stoller, a fellow at the Open Markets Institute, a think tank that has criticized the power of large companies. The office of Senate Minority Leader Charles Schumer, D-N.Y., circulated a list of more than 30 large companies that have announced a combined $83.7 billion in share buybacks in recent days in anticipation of the bill's passage. Would they have spent some of this money anyway, even without a tax bill?

On Wednesday morning, Congress passed the biggest tax-reform bill in 31 years.

"That's because of what we did", Trump said of AT&T.

Related news:

Hot News

isis-killer-beheading-video-story-top Liverpool survives Arsenal fightback in six-goal thriller
Dec 24, 2017 - 03:30
Liverpool's defensive capabilities have come under renewed criticism following a chaotic encounter at the Emirates Stadium. Set-piece goals happen but even there we are better, and we score more often than we concede.

King Harry Kane hits hat-trick against Burnley
Dec 24, 2017 - 03:23
The triple, Kane's seventh of his prolific 2017, took his Premier League tally for the calendar year to 36, equalling Alan Shearer's record from 1995.

isis-killer-beheading-video-story-top Birmingham Bowl Texas Tech vs. South Florida Predictions 12/23/17
Dec 24, 2017 - 03:12
The junior linebacker for the Red Raiders forced a fumble to begin the half and recovered another that led to a Texas Tech score. Flowers was just 4-of-14 passing for 52 yards at halftime when the game was a 10-10 defensive struggle.

isis-killer-beheading-video-story-top Will prepaying your 2018 taxes offset the new tax code?
Dec 23, 2017 - 02:09
Rresidents also can grab the document in person at Miller's office, at the corner of Route 47 and Russel Court in Woodstock . Alameda County put out a media advisory this week encouraging people to consider paying the second installment early.

isis-killer-beheading-video-story-top Dutch Journalist Debunks US Ambassador's 'Fake News' Claim to His Face
Dec 23, 2017 - 02:07
Hoekstra is a native-born Dutchman who immigrated with his parents to the United States at age 3 and grew up in West Michigan. Hoekstra, a Republican appointed to his new position on December 11, denied he had ever made that statement.

isis-killer-beheading-video-story-top Next Syria peace talks in Geneva in January — UN's de Mistura
Dec 23, 2017 - 02:05
The next high-level global meeting on Syria in Astana will be held in the second half of February 2018. He also elaborated on the UN's plan to continue Syrian-Syrian talks.

isis-killer-beheading-video-story-top Alphabet's Eric Schmidt to step down as executive chairman
Dec 23, 2017 - 02:02
Eric Schmidt has been working with Alphabet for many years and with Google even longer, filling executive roles along the way. Schmidt noted that he will continue o expand his work in technology issues, philanthropy, and science.

isis-killer-beheading-video-story-top Manchester United boss Mourinho backs flop stars to succeed
Dec 23, 2017 - 02:00
A source told the Daily Mail that cheers rang out from Manchester's Menagerie bar on Wednesday night where the City players were hosting their bash.

isis-killer-beheading-video-story-top LG's first Nano IPS-based monitor to become official at CES, 2018
Dec 23, 2017 - 01:59
LG says the spec includes HDR600, which is a new VESA standard covering brightness levels, black level, color gamut and bit depth. The LG 32UK950 also features razor-slim bezels thanks to a 4-Side Edge Borderless design and a built-in Thunderbolt 3 dock.

isis-killer-beheading-video-story-top Pokemon Go on iOS now supports Apple's ARKit for improved mechanics
Dec 22, 2017 - 02:16
For that reason, you need to be running that version of the OS or a newer one in order to see the new functionality. In fact, if you're stealthy enough, you can even sneak up on Pokemon in the wild and earn an Expert Handler bonus.

isis-killer-beheading-video-story-top Pakistan rules out immediate execution of Indian spy Kulbhushan Jadhav
Dec 22, 2017 - 02:15
I suggest they should not be taken seriously, " External Affairs Ministry spokesperson Raveesh Kumar said at a media briefing. The visas for Jadav's wife and mother to visit Islamabad were granted by the Pakistan High Commission in New Delhi.

isis-killer-beheading-video-story-top Apple will put an EKG reader on Apple Watch (I doubt it)
Dec 22, 2017 - 02:14
On top of that, the health industry is an especially lucrative market to get into-and Apple's all about that, too. Bloomberg has reported that new versions of the Apple Watch could feature souped-up heart-monitoring technology.

isis-killer-beheading-video-story-top Happy Birthday, Taimur. Here Are Your Wishes From Aunt Karisma And Others
Dec 22, 2017 - 02:10
Kapoor family as well Taimur's aunt Karisma Kapoor is there too, with her children, Kiaan and Samaira. On this special occasion of Taimur's birthday, we have brought something very interesting about him.

isis-killer-beheading-video-story-top Wenger urges Arsenal to avenge Anfield humiliation
Dec 22, 2017 - 02:08
Germany global Shkodran Mustafi returned to first team training this week and is expected to feature on Friday night. You can not go home and say everything was ideal when you lose like we did".

isis-killer-beheading-video-story-top 'Mamma Mia!' Sequel Trailer Teases Bigger Musical Spectacle
Dec 22, 2017 - 01:53
Played by Amanda Seyfried in the original, Sophie discovers that her mother, played by Streep , isn't sure who her father is. The preview makes it seem like Streep's character was killed off in the film, though that has yet to be confirmed.