A few U.S. companies have already promised to pay a one-time bonus to employees or increase hourly wages if the new tax bill passed in Congress is signed by President Donald Trump.
AT&T led the way by saying it is planning to use part of its tax savings for its employees by saying when the tax bill is law, it would pay a one-time bonus of $1,000 to over 200,000 non-management employees.
That bonus could be in the paychecks of employees during the holidays if the bill is signed by Trump prior to Christmas, said the company. The telecommunications giant confirmed as well that it would invest over $1 billion during 2018 in the U.S.
The CEO and chairman at AT&T Randall Stephenson said that Congress took a huge step to bring taxes that U.S. businesses pay in line with the other parts of the industrialized world, and the reform will help drive growth and create new jobs across the country.
In fact, Stephenson said, AT&T would increase its investment in the U.S. and pay a bonus to its U.S. employees.
On Wednesday, Comcast announced it would award special one-time bonuses of $1,000 to over 100,000 of its employees, which includes non-executive and frontline employees.
The union representing many of the frontline workers had demanded employers guarantee the household wage increase of $4,000 that GOP lawmakers asserted would be the result of the tax cut.
Other companies that included Boeing, Wells Fargo and Fifth Third Bancorp announced they would also be passing along the tax savings to workers.
This news is the first sign many in middle-class America will receive a financial benefit due to their employers paying less taxes.
The new reform bill for taxes, which includes large and permanent tax cuts for companies and temporary relief for individuals, has created a huge debate in Congress and on Wall Street related to whether America’s middle class would benefit the same way big business would.
Fifth Third Bancorp said it would raise its minimum wage for all its hourly employees to $15, and distribute a special one-time $1,000 bonus to over 13,500 employees before January 1 if the bill is signed prior to Christmas.
Wells Fargo said it would increase to $15 its minimum wage, which is an 11% increase over the current $13.50 starting rate.
Comcast announced $1,000 bonuses to eligible employees.