Employees at companies of all sizes and in various industries are already starting to bring home additional money in direct response to tax reform by the Trump administration.
Even before Americans start to determine whether Republicans were correct in predicting the new law will result in noticeably larger paychecks, many workers have already received or been promised a bonus of some type.
As the Washington Examiner reported, the number of firms offering an incentive tied to their lower tax bill has reached at least 250 in the weeks since President Donald Trump signed the bill into law late last year.
While the Republican bill received some criticism for its disproportionately steep corporate tax cuts, many of those businesses have shown a willingness to pass some of that money on to their employees.
Among the latest major corporations to announce such bonuses are Starbucks, Disney and Home Depot.
Many of the firms are offering one-time cash bonuses, but some have promised additional and potentially more long-term benefits as a result of the corporate tax cut.
According to the Chicago Tribune, Starbucks, the world’s largest coffee chain, will offer its employees expanded parental and sick leave in addition to a one-time stock grant and an hourly wage hike.
Disney has also made a sizable and multifaceted investment in its employees in response to the new tax rate, Fortune reported this week.
Along with giving more than 125,000 individuals a $1,000 bonus, the entertainment giant is also putting $50 million into a program designed to help workers pay for college tuition. About 88,000 employees will reportedly be eligible for college tuition help from the program Disney has pledged to fund annually.
About 90 percent of Home Depot’s more than 400,000 employees are expected to receive a $1,000 bonus the company recently promised each of its nonsalaried workers.
In a statement announcing the bonuses, CEO and President Craig Menear joined other business leaders in crediting the lower tax rate.
“We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service,” he said. “This incremental investment in our associates was made possible by the new tax reform bill.”
Walmart and a number of other major corporations have made similar announcements recently, though many other smaller employers are also joining the movement.
The conservative advocacy group Americans for Tax Reform has been keeping track of announcements by firms offering employees an incentive tied to the tax reform bill.
Some executives at smaller companies thanked Trump directly for the new tax bill, while many took the opportunity to recognize their employees with more than just a check.
“Because of the reduction in corporate taxes we, as will all businesses, benefit from this tax cut,” CEO Roger C. Camp wrote to employees of his Houston construction company. “We believe that YOU are the reason for our success. And now that we will be giving less of our hard earned income to the federal government, we can share some of it with you.”
Employees of Camp Construction Services will be receiving a $500 bonus with their next check, he announced.
The total number of firms offering some type of bonus has increased a reported 525 percent over the past two weeks.
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.