All the companies giving out raises and bonuses because of tax reform

American corporations are chipper about tax reform. That's been great news for some workers.On Thursday, Walma...

Posted: Jan 12, 2018 4:40 AM
Updated: Jan 12, 2018 4:40 AM

American corporations are chipper about tax reform. That's been great news for some workers.

On Thursday, Walmart became the latest company 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 who is passing some of those savings along to employees.

American Airlines

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.

AT&T

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

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."

Fifth Third Bancorp

The financial services company said on December 20, 2017 that it would raise its minimum wage to $15 an hour for all employees. The firm also said it would give a one-time $1,000 bonus to more than 13,500 employees.

CEO Greg Carmichael credited tax reform legislation for the move.

"The tax cut allowed the Bank the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce," Fifth Third said in a press release.

Southwest Airlines

Southwest said on January 2 that it would "celebrate the recent tax reform legislation" by giving full-time and part-time employees $1,000 cash bonuses.

"We are excited about the savings and additional capital, which we intend to put to work in several forms," CEO Gary Kelly said in a statement.

Southwest also said it would give an additional $5 million to charities, and pledged to buy more planes from Boeing, its aircraft supplier.

Walmart

Walmart announced Thursday that it will give employees a one-time bonus of up to $1,000. The company is also raising wages for workers.

The nation's largest retailer said it would increase its minimum wage to $11 an hour starting in February. Walmart last raised its minimum pay for employees to $10 an hour in 2015.

"Today, we are building on investments we've been making in associates, in their wages and skills development," Walmart president and CEO Doug McMillon said in a news release. He credited tax reform for allowing the company to "accelerate plans for the U.S."

The news came the same day Sam's Club shut down multiple locations.

Walmart also said it would create a new benefit to help with adoption expenses and is expanding its paid parental leave policy.

Wells Fargo

The bank said on December 20, 2017 that it would raise the company's minimum wage to $15 an hour, from $13.50.

"We believe tax reform is good for our U.S. economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners," CEO Tim Sloan said in a statement.

Wells Fargo also said it would increase its charitable giving in 2018 by about 40% to $400 million.

-- CNNMoney's Jackie Wattles and Chris Isidore contributed to this report.

Huntsville
Overcast
66° wxIcon
Hi: 82° Lo: 63°
Feels Like: 66°
Florence
Scattered Clouds
66° wxIcon
Hi: 82° Lo: 62°
Feels Like: 66°
Fayetteville
Overcast
64° wxIcon
Hi: 80° Lo: 61°
Feels Like: 64°
Decatur
Broken Clouds
65° wxIcon
Hi: 81° Lo: 62°
Feels Like: 65°
Scottsboro
Overcast
66° wxIcon
Hi: 80° Lo: 62°
Feels Like: 66°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 16530

Reported Deaths: 591
CountyConfirmedDeaths
Mobile2124112
Jefferson1712100
Montgomery154134
Tuscaloosa67813
Marshall6689
Lee53332
Franklin5147
Shelby48419
Tallapoosa41864
Butler39213
Chambers34924
Madison3184
Elmore3137
Walker2991
Baldwin2819
Etowah24411
Dallas2443
DeKalb2413
Morgan2311
Coffee2241
Lowndes22210
Sumter2136
Autauga2053
Houston1884
Bullock1833
Pike1790
Colbert1612
Russell1590
Marengo1556
Lauderdale1532
Calhoun1523
Hale1517
Choctaw1488
Wilcox1347
Barbour1321
Clarke1292
Randolph1257
Marion11911
St. Clair1161
Pickens1014
Talladega1003
Dale990
Chilton971
Cullman960
Greene924
Limestone870
Winston820
Covington771
Jackson752
Crenshaw722
Bibb711
Henry712
Macon712
Washington666
Blount581
Escambia493
Lawrence460
Geneva400
Conecuh351
Coosa351
Monroe352
Perry350
Cherokee342
Clay272
Lamar210
Fayette130
Cleburne131
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 21679

Reported Deaths: 356
CountyConfirmedDeaths
Davidson489460
Shelby4718107
Trousdale13934
Rutherford111622
Sumner85245
Hamilton71915
Bledsoe6081
Williamson53310
Putnam4615
Robertson4412
Tipton4303
Lake4130
Wilson3878
Out of TN3794
Knox3575
Bedford2744
Montgomery2613
Rhea1980
Hardeman1940
Madison1752
Loudon1370
McMinn13614
Macon1243
Cheatham1180
Cumberland1111
Dickson1100
Fayette1102
Bradley1081
Blount893
Maury810
Sevier762
Washington750
Coffee680
Unassigned670
Wayne630
Gibson611
Monroe612
Sullivan602
Hickman570
Lauderdale561
Dyer500
Franklin491
Greene482
Anderson391
Marion381
DeKalb370
Grundy321
Hawkins312
Haywood302
Smith301
Hamblen302
Henry300
Marshall301
White300
Obion281
Jefferson280
Carroll271
Meigs260
Overton260
Weakley260
Lincoln250
Lawrence240
Warren220
Cocke200
Carter191
Jackson170
Morgan170
Cannon170
Campbell171
Roane160
Crockett162
Perry160
Johnson160
Polk150
Sequatchie150
Henderson140
Humphreys131
Chester120
Fentress120
Giles120
McNairy120
Scott110
Stewart110
Hardin112
Claiborne90
Houston80
Benton71
Grainger60
Clay60
Decatur50
Van Buren40
Union40
Unicoi40
Moore30
Pickett30
Lewis30
Hancock10

 

 

Community Events