Listen to Nancy Pelosi and you’d think the world was ending after the dramatic corporate tax cut.
She calls the bill “monumental, brazen theft from the American middle class,” and that’s one of her more restrained comments. Per Pelosi, the bill is an affront to the Founding Fathers, veterans, children, and all that is good and true in America life.
But that’s not exactly how its being received by hundreds of thousands of workers. In fact, quite the opposite!
The Daily Mail reports,
AT&T said that it will pay $1,000 bonuses to more than 200,000 employees – and promised to make $1 billion in new investments in the United States next year – once a tax reform bill approved by Congress is signed into law.
The Republican-controlled House and Senate have given final approval to the biggest overhaul of the U.S. tax code in 30 years, sending the sweeping bill to President Donald Trump for his signature.
As part of that bill, the tax rate on corporations will drop from 35 per cent to 21 per cent. Trump previously called the measure ‘rocket fuel’ for the economy.
After AT&T’s announcement, other companies followed suit.
Comcast NBCUniversal 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.
The cable and Internet giant also boasted that it ‘expects to spend well in excess of $50 billion over the next five years investing in infrastructure.’
Boeing said it would make a ‘$300 million employee-related and charitable investment as a result of #TaxReform legislation.’
And 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 about to plummet.
Wells Fargo matched that $15 per hour minimum wage hike and said it was prompted by the tax plan. The San Francisco-based bank also said it would make $400 million in donations to nonprofit charities and other community organizations in 2018.
FedEx also showed optimism, with its CFO saying during an earnings call that the package shipping giant will likely expand if the tax cuts lead to larger national economic growth.
‘GDP could increase materially next year as a result of U.S. tax reform. If this occurs, we would likely increase capital expenditures and hiring,’ Alan Graf told investors.
In a victory-lap event on the White House’s South Lawn, Trump read aloud a news account of the AT&T decision and said more like it are coming.
‘That’s because of what we did,’ he said. ‘So that’s pretty good.’
‘I mentioned AT&T,’ he said minutes later, ‘but many companies have come forward and [are] saying they’re so happy, and they’re going to be doing similar announcements.’
In a letter to employees, AT&T CEO Randall Stephenson said the bonuses would be paid to all ‘union-represented, non-management, and 1st and 2nd line managers.’
‘If the President signs the bill before Christmas, employees will receive the bonus over the holidays,’ the company added.
The missive to AT&T’s workforce said the new 21 per cent corporate tax rate would put the U.S. ‘in line with the rest of the industrialized world.’
‘This new lower rate encourages businesses to invest more in the United States. And more investment creates more good-paying jobs and increases economic growth.’
Just minutes before AT&T announced its employee bonuses, Senate Minority Leader Chuck Schumer excoriated the company as a greedy corporation that would use its tax cut to buy back its stock and reward its executives.
‘Over the last ten years, AT&T has paid an average tax rate of 8 per cent a year. They have 80,000 fewer employees today than they had then,’ the New York Democrat complained.
‘Tax breaks don’t lead to job creation. They lead to big CEO salaries and money for the very, very wealthy.’
Read Full Story At Daily Mail