These companies have promises bonuses/wage increases thanks to Trump tax reforms

Tammy Harvey
December 22, 2017

Wells Fargo and Fifth Third Bancorp said they plan to hike their company-wide minimum wages to $15 an hour.

For Trump, who was about to host a self-congratulatory White House event to mark the biggest legislative achievement of his first year in office, AT&T's move was tailor-made evidence to bolster his claim that middle-class workers will reap instant benefits from the GOP tax plan. An AT&T spokesman said the bonuses were unrelated to the $1,000 that 20,000 AT&T Mobility employees will receive as part of an agreement with the Communications Workers of America announced last week. It is up to our corporations to take the money they will save from a lower tax rate and invest it in the American economy.

Exactly how it will play out remains a topic of fierce debate. The bonuses will cost the company at least $200 million, but the precise amount is not yet known, the company said.

Other companies have been more reluctant to promise any new investments or returns for workers as a result of tax cuts.

"Congress, working closely with the President, took a monumental step to bring taxes paid by USA businesses in line with the rest of the industrialized world", said Randall Stephenson, AT&T chairman and CEO, in a news release.

"This tax reform will drive economic growth and create good-paying jobs", he said. The company, which also owns NBCUniversal, said it also expects to spend more than $50 billion over the next five years investing in infrastructure to improve and extend broadband plant and capacity, and its television, film and theme park offerings. The aerospace giant announced $300 million in spending, to be split equally between worker training, upgrading workforce facilities and a program that matches employees' charitable contributions. "We are proud to see our corporate partners taking initiative and committing to job creation, better wages and better services for consumers", said Don Salazaar, Chariman of the Board at the USHCC.

The financial services company says it will raise its company-wide hourly minimum wage to $15, signaling a pay raise for about 75% of its employees.

Similarly, AT&T will be awarding 200,000 of its frontline employees with bonuses of $1,000.

Since the Senate passed their initial tax overhaul, 32 companies have announced share buybacks totaling $83.7 billion, Schumer's office said.

"We want to invest in our most important asset - our people", said Fifth Third president and CEO Greg Carmichael. That will mark a $1.50 increase over the company's current minimum of $13.50 per hour. The pay raise will go into effect in March 2018, the company said.

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