The Republican tax reform plan was only signed into law less than two weeks ago, but companies have already started announcing their plans to pass along some of those savings to their employees. The moment tax legislation was signed into law companies responded by committing future investments into their companies and committing immediate investments into their employees.
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Kellyanne Conway, Counselor to U.S. President Donald Trump, told FOX Business’ Stuart Varney on “Varney & Co.,” “Practically at the moment the tax legislation was signed into law companies responded immediately by committing future investments into their companies and committing immediate investments into their employees.”
Before the tax cuts were even signed by President Trump AT&T (NYSE:T) announced it would give $1,000 bonuses to 200,000 of its U.S. employees. Comcast (NASDAQ:CMCSA) has since announced $1,000 bonuses. Wells Fargo (NYSE:WFC) has said it will raise the minimum wage at the company to $15 an hour. U.S. Bank and Fifth Third Bancorp (NASDAQ:FITB) are planning to raise their minimum wage along with giving $1,000 bonuses to some of their employees. Boeing (NYSE:BA) announced plans for $300 million in investments due to the tax reform package.
Southwest Airlines was the latest to join the growing list of companies.
“I saw Southwest Airlines join the fray recently with $1,000 bonuses to their employees owing that to the tax cut, the tax reduction package,” Conway noted, adding that companies have little justification for not passing on some of their savings to their employees.
“American companies have every reason and very little excuses to not share in those savings with their workforce and if they don’t workers can go somewhere else, that’s what will happen in a booming economy that lifts all boats.”