Several U.S. companies announced new investment and compensation plans after Congress approved a bill on December 20 that would cut the headline corporation tax rate from 35 percent to 21 percent. Boeing was first out of the gate, followed by AT&T, which said it would give more than 200,000 unionized employees a special bonus of $1,000 once the tax bill is signed. The telecom giant also confirmed it would invest $1 billion more in the U.S.in 2018. "In fact, we will increase our USA investment and pay a special bonus to our USA employees", Randall Stephenson, AT&T's chairman and CEO, said in the statement.
"We believe tax reform is good for our USA economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners", Wells Fargo CEO and President Tim Sloan said in the Thursday statement that mentioned the $15 minimum pay.
Some CEOs wasted little time in promoting President Trump's tax-cut bill as a win-win-win for their workers as well as for their companies - and the country as a whole. The bonus could hit employees paychecks over the holidays if Trump signs the bill before Christmas, the company said in a statement. And Fifth Third Bancorp and Wells Fargo & Co. each announced increases to their minimum hourly wage, among other things.
House members voted on Wednesday to pass a bill that would cut the corporate tax rate to 21 percent from 35 percent.
Scandal-plagued Wells Fargo said it would boost its minimum wage to $15 an hour, an 11-percent increase, beginning in March.
Isaiah Thomas Looks to Make Cavaliers Debut First Week of 2018
Giving Thomas a practice run with the Charge should also brighten the prospects of the Cavs giving a definite date for his return. Thomas has been out all season as he recovers from a hip injury.
Boeing said $300 million of investments would move forward, split equally between corporate giving, workforce training and facilities for the aircraft maker's employees.
"Each of these investments benefits Boeing's most important strength - our employees - and reflects the real-time impact and economic benefit of the reforms", Boeing CEO Dennis Muilenburg, said in a statement. It also said it plans to spend well in excess of $50 billion over the next five years on infrastructure improvements.
Both USA TODAY and The Washington Post note that companies such as AT&T and Comcast have the added benefit of the FCC's decision to repeal net neutrality, which would allow them to invest into new upgrades that may or may not hinder access to certain websites.
AT&T CEO Randall Stephenson said in a phone call with the head of the union that company couldn't do the $4,000 raise but was considering a $1,000 bonus to union and non-union employees, company spokesman Larry Solomon said.