Published: Sun, December 24, 2017
Medical | By Josefina Yates

Why Comcast, AT&T, others are suddenly giving $1000 bonuses to workers

Why Comcast, AT&T, others are suddenly giving $1000 bonuses to workers

He said on Friday: "Our big and very popular Tax Cut and Reform Bill has taken on an unexpected new source of "love" - that is big companies and corporations showering their workers with bonuses".

House Speaker Paul Ryan, R-Wisconsin, touted the tax cut legislation resulting in "new investments into the USA economy" as "great news".

Hours after landing a massive tax windfall, AT&T, Comcast, Wells Fargo and Boeing - among other major companies - announced plans Wednesday to share a fraction of their bounty with workers.

Wells Fargo will be raising their minimum wage to $15 an hour and donating $400 million to charity and philanthropy.

Earlier, the President hailed companies "showering their workers with Christmas bonuses" as a result of his corporate tax reforms.

And Fifth Third Bancorp., a regional bank based in Cincinnati, said it would boost its minimum wage for all of its almost 3,000 hourly employees to $15 as well as distribute a one-time bonus of $1,000 for more than 13,500 employees.

Some of the companies have business motives for currying favor with the administration.

More: Face facts, America, Donald Trump is a success.

The telecom giants have said that tax reform, coupled with the Federal Communications Commission's repeal of the Net Neutrality regulations last week, will make room for additional investments on employees, as well as network infrastructure and next-generation technologies, such as 5G.

More news: Princess Michael of Kent wears racist brooch to Buckingham Palace

AT&T is in the process of acquiring Time Warner Inc TWX.N for $85.4 billion, but the U.S. Department of Justice has sued AT&T to block the deal, saying it could raise prices for rivals and hamper development of online video.

Randall Stephenson, AT&T's chief executive, said in a statement, "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".

AT&T, the No. 2 USA wireless carrier, said it will pay $1,000 bonuses to more than 200,000 employees and invest an additional $1 billion in the United States in 2018, once the tax reform bill is signed into law.

Republican senators, House Speaker Paul Ryan and Trump praised the announcements.

Then there is this question: Do workers benefit? Companies are mostly expected to buy back stock or pay down debt with their savings.

In addition to helping larger corporations, the Act will reduce the business income tax rate by 20 percent for smaller "pass-through" companies that run as partnerships, LLCs and S-corporations, which include the majority of solution provider organizations.

In her Thursday news conference, House Minority Leader Nancy Pelosi, D-Calif., singled out AT&T by name. They will. Much has been made of how the Republican tax bill actually raises taxes for some people, but only 5% will see a short-term increase, according to the Tax Policy Center - and that mostly applies to affluent people who live in blue states with high taxes.

On Wednesday morning, Congress passed the biggest tax-reform bill in 31 years. "That's because of what we did", he said.

Like this: