The ink wasn’t even dry on the most extensive tax reform bill in 30 years before AT&T announced that 200,000 of its employees would be getting a very nice Christmas present:
The telecom giant said in a press release on Wednesday that it would give more than 200,000 U.S. union members a special bonus of $1,000. The company also increased its capital expenditures budget by $1 billion in the U.S.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” CEO Randall Stephenson said in a statement. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
AT&T had previously said it would invest $1 billion in the U.S. if “competitive” tax reform legislation was passed, and has said that tax reform framework could increase demand for AT&T’s services. The new tax laws are expected to drop the corporate tax rate to 21 percent from the current 35 percent and includes other measures that Republicans say will spur businesses to invest domestically.
You might be tempted to think this is an isolated event. Turns out Boeing is gearing up to do some serious investment because of Trump’s tax reform bill as well:
The simpler tax code and lower tax rate are closer to those enjoyed by Boeing’s global competition and will have a clear and direct benefit to Boeing, its employees, and other stakeholders.
“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,” Muilenburg said.
While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:
- $100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing’s focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
- $100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
- $100 million for “workplace of the future” facilities and infrastructure enhancements for Boeing employees.
“Each of these investments benefits Boeing’s most important strength – our employees – and reflects the real-time impact and economic benefit of the reforms,” said Muilenburg.
How many times have we been told by media pundits, Democrats, and so-called conservatives that giant corporations would refuse to invest in America again? The Democrat talking point has been that these corporations will simply stockpile their tax savings overseas in super-secret slush funds because THAT’S WHAT THEY DO, WINGNUTS!!! Yet here we have two major corporations doing the exact opposite.
How many more large corporations are going to invest more in America’s future because of these tax cuts? What percentage of small businesses are going to be able to afford to expand their operations because of their tax savings? I’m willing to bet the answer is going to make a lot of Democrats uncomfortable.
Trump’s tax reform bill is shaping up to be a huge win for the GOP. Let the Democrats wail and gnash their teeth in rage. It will only make their defeat in 2018 that much sweeter.