Major US companies say workers will see some of tax windfall

Major US companies say workers will see some of tax windfall

Conscious that tax-cut opponents have latched on to the fact that one of the bill's biggest provisions is to cut the USA corporate tax rate to 21 percent from 35 percent, AT&T, Wells Fargo, Comcast, Boeing and Fifth Third Bancorp. quickly announced on Wednesday that they would pass along some of the anticipated tax savings to their employees in forms ranging from outright bonuses to facilities and training investments.

AT&T Inc. and Comcast Corp. said they would pay a $1,000 bonus to most of their US workers-more than 300,000 people combined-once the president signs the legislation.

Comcast says it now plans to spend "in excess of $50 billion" over the next five years investing in infrastructure and building out physical broadband plants. The Dallas-based carrier will also pay a $1,000 bonus to more than 200,000 USA -based employees who are union-represented, non-management, and front-line managers.

"We believe tax reform is good for our USA economy and are pleased to raise our minimum hourly pay to $15 as a result", Gilchrist said.

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Wells Fargo was one of a number of companies that released statements on Wednesday that linked increased pay or bonuses to employees to the tax bill.

AT&T boss Randall Stephenson labelled Trump's reforms a "monumental plan". Moreover, AT&T promised that if the President signs the bill before Christmas, employees will receive their bonus over the holidays.

The news is the first sign that many in the middle-class will benefit financially from their employers paying less in taxes.

US corporations stand to save big with the permanent tax cut instituted by the GOP-backed tax bill. And Fifth Third Bancorp and Wells Fargo & Co. each announced increases to their minimum hourly wage, among other things.

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The minimum wage hike will impact almost 3,000 employees. The pay raise will go into effect in March 2018, the company said.

Boeing said it would move forward with $300 million in investments as a result of the new tax law, including $100 million in employee training and education and $100 million to enhance Boeing facilities as part of its "workforce of the future" initiative.

"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.

Comcast also announced that they'd offer $1,000 bonuses to "eligible frontline and non-executive employees", The Washington Post reports. The company has been cutting thousands of jobs as it copes with tougher competition and fewer sales opportunities in commercial aerospace.

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