Mar 01, 2018

CarMax, TJ Maxx, Mastercard & Kraft Heinz Announce Major Employee Investments Credited to Tax Reform

Post by Freedom Partners

The historic Tax Cuts and Jobs Act lowered rates across the board, cutting taxes at every income bracket and providing greater opportunity and financial security for hardworking Americans long-struggling to get ahead under the rigged system.

This means billions of dollars in new investment, more jobs and bigger paychecks helping to improve the lives of hardworking taxpayers as unemployment reaches historic lows and wages rise to levels not seen in nearly a decade.

Tax reform is working, and millions of U.S. workers are seeing its many benefits.

CarMax: “Carmax To Provide One-Time Bonus To Associates As A Result Of The Tax Cuts And Jobs Act Of 2017”

“CarMax, Inc., the nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company.

“Our success as a company is due to the hard work and dedication of our talented Associates,” said Bill Nash, CarMax President and CEO. “We are always looking for ways we can support them, and I’m pleased to have this opportunity to thank associates for all that they do every day for our customers and for each other.”

TJ Maxx: TJ Maxx Will Spend “About $100 Million On The Bonuses, Increased Retirement Fund Contributions And Donations To Its Charitable Foundations”

TJX Cos. Inc. also announced it would use federal tax reform savings to give one-time cash bonuses to non-bonus-plan associates globally, increase its contribution to all associates’ retirement plans, and institute paid parental leave and enhanced vacation benefits for eligible U.S. workers…

“…TJX will spend about $100 million on the bonuses, increased retirement fund contributions and donations to its charitable foundations, and the majority will go to bonuses.

“The paid parental leave policy includes four weeks for eligible U.S. associates. And eligible U.S. store and district hourly associates will now get paid vacation after six months of employment, instead of 12 months.”

Mastercard: “Mastercard ups 401(k) employer match to 10%”

“Mastercard Inc., Purchase, N.Y., is increasing the cap on the employer match in its 401(k) plan to 10% of an employee’s salary, a spokesman confirmed.

“Previously, the company match was 125% of employee contributions up to 6% of salary.

“Michael Fraccaro, chief human resources officer, announced the change in a LinkedIn post last week. He cited recent U.S. tax reform as the impetus for the change.”

Kraft Heinz: Kraft Heinz Invests $1.3 Billion To Pre-Fund Post-Retirement Benefit Plans 

“There’s no question that our financial performance in 2017 did not reflect our progress or potential,” said Kraft Heinz CEO Bernardo Hees. “We made significant improvements in many of our businesses, and were able to accelerate some important business investments at the end of the year. This, together with benefits from the U.S. Tax Cuts and Jobs Act and additional investments in our capabilities, should help further advantage our brands and grow our business in 2018 and beyond.”

“Since the HR-1 Tax Cuts and Jobs Act was signed into law, we have already taken actions and are accelerating key business initiatives,” said Kraft Heinz CFO David Knopf. “This includes approximately $300 million in strategic investments to build our capabilities, our people skills and our brands; more than $800 million in capital expenditures to improve quality, safety and capacity; as well as $1.3 billion to pre-fund our post-retirement benefit plans.”

The New York Times recently reported that “a wave of optimism” is starting to wake up the “animal spirits” of businesses and open the flood gates to new investments, higher wages and more jobs as a result of the new tax law, as well as the Trump administration’s bold efforts to dismantle the many Obama regulatory barriers harming opportunity and growth.

View The Full List Of Hundreds Of Businesses From Around The Country Announcing Higher Wages, Bigger Paychecks, More Jobs And Billions Of Dollars In New Investments