American corporations are chipper about tax reform. That’s been great news for some workers.
On Thursday, Walmart became the latest of dozens of companies to announce one-time bonuses related to the new tax law. Notably, the company also said it would raise its minimum wage to $11 an hour.
There are plenty of reasons for companies to reward workers right now. The economy is doing well, and unemployment is at a low 4.1%. In a tight labor market, companies often need to pay more and provide better benefits in order to fill open positions.
But the new tax law signed by President Trump certainly frees up a lot of cash. It cut the corporate tax rate from 35% to 21%.
Here’s a sampling of who is passing some of those savings along to employees.
The airline said on January 2 that it would give 130,000 employees a $1,000 bonus because of the new tax law.
American hasn’t been paying federal income taxes because of substantial losses in the past, but CEO Doug Parker said in a letter to team members that the tax package will give the company a boost down the road.
“We will be able to invest even more in aircraft and facilities, and we will be able to do so with even greater confidence about the future,” he said.
The telecom giant said on December 20, 2017 — the day Congress passed the tax bill — that it would give 200,000 U.S. employees a $1,000 holiday bonus.
“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.
(AT&T is working to acquire CNN parent company Time Warner. The Justice Department sued to block the deal in November.)
Bank of America
The bank said on December 22, 2017 that those making up to $150,000 per year, or about 145,000 workers, would receive a one-time bonus of $1,000.
CEO Brian Moynihan highlighted tax reform in an internal memo announcing the news.
“Beginning in 2018, we will see benefits from the tax reform … in the form of lower corporate tax rates,” he said.
Comcast said on December 20, 2017 that it would give $1,000 holiday bonuses to more than 100,000 employees.
The telecom company added that it expects to spend “well in excess of $50 billion over the next five years investing in infrastructure to radically improve and extend our broadband plant and capacity, and our television, film and theme park offerings,” according to a press release.
The release said the announcement was “based on the passage of tax reform.”
Fiat Chrysler announced Thursday that it will give 60,000 U.S. workers a one-time $2,000 bonus.
The company also said it’s moving production of the Ram heavy-duty truck from Saltillo, Mexico, to Warren, Michigan, in 2020.
“It is only proper that our employees share in the savings generated by tax reform and that we openly…