Apple to give $2,500 bonuses to employees after tax reform

Committee for a Responsible Federal Budget Senior Vice President Marc Goldwein explains why, although the economy is reacting positively to tax cuts, the national debt that was exponentially increased by the bill could hinder growth.

Apple Inc. (NASDAQ:APPL) is awarding bonuses worth $2,500 to most of its global employees after the passage of a GOP-backed tax reform bill, a source familiar with the matter told FOX Business.

The bonuses will be dispersed in the form of restricted stock units. Employees below the senior level title of “director” are eligible for the bonus.

Apple did not immediately comment on the situation. Bloomberg was first to report the bonuses.

The Cupertino, California-based tech giant announced earlier Wednesday it would add 20,000 employees and build a new campus as part of a plan it says will result in $350 billion in “direct contribution” to the U.S. economy. Apple said it will spend $30 billion over the next five years to fund a U.S. expansion, and expects to pay roughly $38 billion in repatriation tax payments as it shifts the vast majority of its $252.3 billion in overseas cash back to the U.S.

Apple’s announcements came weeks after the passage of a GOP tax reform bill lowered the corporate tax rate to 21% from 35%. Apple joins several other companies, including AT&T (NYSE:T), Boeing (NYSE:BA) and JetBlue (NASDAQ:JBLU), in awarding bonuses to its employees due to tax reform.