As the House and Senate approved the biggest change in the U.S. tax code in 30 years, companies celebrated the dramatic cut in corporate tax rates by giving their workers bonuses or pay hikes.
The tax reform bill will reduce the tax rate on corporations from 35 per cent to 21 per cent, which President Donald Trump referred to as 'rocket fuel' for the economy.
Over 200,000 employees of AT&T got some Christmas cheer on Wednesday when the company passed a portion of its earnings from the tax cut to $1,000 bonuses for all workers. Once the new tax reform bill is signed into law, AT&T vowed to make $1 billion in new investments in the United States next year.
After AT&T went public with the announcement, it was Comcast NBCUniversal’s turn. The cable and Internet giant said it would award $1,000 bonuses to more than 100,000 workers, 'based on the passage of tax reform' and a recent FCC decision to repeal 'net neutrality' rules. It also said it 'expects to spend well in excess of $50 billion over the next five years investing in infrastructure.'
More companies started making similar announcements throughout the day.
Boeing said it would make a '$300 million employee-related and charitable investment as a result of #TaxReform legislation.'
Fifth Third Bancorp in Cincinnati, Ohio said it will pay $1,000 bonuses to more than 13,500 employees and raise the minimum wage for its workforce to $15 per hour because its tax rate is going to fall.
Wells Fargo also raised minimum wage to $15 per hour hike and said it was a direct result of the new tax plan. The bank also said it would make $400 million in donations to nonprofit charities and other community organizations in 2018.
The final step required for the implementation of the new tax Bill is President Trump’s signature. He read a news report of AT&T decision’s and said similar offers were likely coming.
'That's because of what we did,' he said. 'So that's pretty good.’
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