Giving President Trump his first major legislative victory, the GOP tax reform bill sailed through all the hoops, as it passed in both the House and the Senate Tuesday, and received a final vote of approval in the House Wednesday morning.
Already, major companies have responded, announcing bonuses and raises to hundreds of thousands of workers.
AT&T: According to a report by CNBC, telecom giant AT&T sent out a press release Wednesday, saying it would give a special $1,000 bonus to over 200,000 of its U.S. workers who are union members. This is in addition to a $1,000 bonus that AT&T had already committed to many workers.
AT&T also committed to an investment of $1 billion in the U.S., in response to the tax reform bill’s passage.
“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.”
COMCAST: Comcast NBCUniversal (parent company to CNBC) also announced Wednesday that it would give special $1,000 bonuses “based on the passage of tax reform and the FCC’s action on broadband.” The bonus will apply to over 100,000 non-executive employees.
WELLS FARGO: In light of the passage of the GOP tax reform bill, Wells Fargo responded by announcing that it would increase its minimum wage for employees to $15 an hour. Additionally, the company committed to $400 million in donations to nonprofit and community organizations next year.
FIFTH THIRD: The fifteenth largest U.S. bank by asset size announced that, due to the tax cut, it would pass along the savings to its employees, giving them a $1,000 one-time bonus by the end of this year, and increasing the hourly wages to $15 for nearly 3,000 workers. Senior managers and top executives are excluded from the windfall bonuses.
BOEING: Immediately after the tax bill passed, Boeing announced it would make $300 million in investments, distributed as follows: $100 million in employee gift-match programs, $100 million to be invested in workforce development, training and education, and $100 million will go toward enhancing Boeing’s workplaces.
“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,” Boeing (BA) President and CEO Dennis Muilenburg said in a statement. “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
FED-EX: CNBC reported that FedEx shares hit a record high on Wednesday, and the company said the passage of the tax reform bill would result in a nearly $1.5 billion increase in earnings this year.
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