Pessimists doubtful of the impact of President Trump’s tax overhaul claimed the money companies would save would be funneled to share holders and not spent on growth. Yet hours after the bill’s final passage, news is breaking that corporations may have other ideas in mind. AT&T has announced it will give $1,000 bonuses to more than 200,000 of its employees. And others are following suit.
“If the President signs the bill before Christmas, employees will receive the bonus over the holidays,” the statement from AT&T read.
President Donald Trump cheered the news. “And that’s because of what we did. That’s pretty good,” Trump said. “That’s pretty good.”
AT&T’s CEO, Randall Stephenson, was optimistic about the tax cuts. They “will drive economic growth and create good-paying jobs,” he said. In addition to the bonuses, the company will increase capital investments.
“Speaking at an Economic Club of New York lunch in late November,” Yahoo News reports, “Stephenson said that if tax reform passed they would spend at least $1 billion and create an estimated 7,000 jobs.”
“From my standpoint,” Stephenson said, “the driver of this is the business tax reform… if we get investment going, we get productivity going, we get wage gain going, we invest another billion dollars. Every billion dollars AT&T invests is 7,000 hard hat jobs. These are not entry-level jobs. These are 7,000 jobs of people putting fiber in ground, hard hat jobs that make $70,000 to $80,000 per year.”
“I cannot overstate how important I think a tax bill that makes the US corporate taxes a competitive regime around the world — that’s big. That’s significant,” he said.
“You are freed up to invest more capital,” he added. “We have so many initiatives and projects that we would like to invest more in.”
Meanwhile, the Department of Justice is blocking AT&T’s proposed acquisition of Time Warner. The deal, estimated to cost $108 billion, would “substantially lessen competition, resulting in higher prices and less innovation for millions of Americans,” the DOJ claims.
And AT&T aren’t the only ones. Boeing is getting in on the investment game. The company tweeted Wednesday that the Tax Cuts and Jobs Act will free-up $300 million for “employee-related and charitable investment.”
— The Boeing Company (@Boeing) December 20, 2017
“On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States,” Boeing CEO Dennis Muilenburg said. “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
“For Boeing, the reforms enable us to better compete on the world stage and give us a stronger foundation for the investment in innovation, facilities and skills that will support our long-term growth.”