Dec 21, 2017
Boeing, Wells Fargo, Fifth Third & Comcast Among the Latest Companies to Announce Billions in New Investments as Pro-Growth Tax Reform Set to Become Law
Post by Freedom Partners
After months of work by congressional leaders and members of the administration, President Donald Trump will soon sign the Tax Cuts and Jobs Act into law.
U.S. businesses Like AT&T and FedEx were quick to respond as the historic legislation – which would provide tax relief for individuals in every income bracket, make businesses more competitive, and fuel economic growth and opportunity for every American under a simpler and fairer tax code – cleared its last hurdle in Congress.
But as the positive benefits of tax reform continue to take shape, even more U.S. businesses are announcing major investments in their operations and workforce to spur innovation and growth for years to come.
Fifth Third Bancorp, a regional bank based in Cincinnati, said it will raise the minimum wage for all of its nearly 3,000 hourly employees to $15, and would distribute a one-time bonus of $1,000 for more than 13,500 employees by the end of the year if the bill is signed by Dec. 25.
“We want to invest in our most important asset – our people,” said Fifth Third president and CEO Greg Carmichael. The tax cut, the CEO said, provided an opportunity for the bank to “reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce.”
Wells Fargo, the San Francisco bank … said it would boost its minimum wage to $15 per hour, an 11% increase from its current hourly rate of $13.50, once the law was passed. The pay raise will go into effect in March 2018, the company said.
Boeing said it would move forward with $300 million in investments as a result of the new tax law, including $100 million in employee training and education and $100 million to enhance Boeing facilities as part of its “workforce of the future” initiative.
“Each of these investments benefits Boeing’s most important strength – our employees – and reflects the real-time impact and economic benefit of the reforms,” Boeing CEO Dennis Muilenburg, said in a statement.
Comcast said it would award special $1,000 bonuses to more than 100,000 eligible employees. The company, which also owns NBCUniversal, said it also expects to spend more than $50 billion over the next five years investing in infrastructure to improve and extend broadband plant and capacity, and its television, film and theme park offerings.
“With these investments, we expect to add thousands of new direct and indirect jobs,” the company said in a media release.
History proves that bold tax relief will benefit all Americans. Tax cuts under presidents Kennedy, Reagan and Bush resulted in strong economic growth, billions of dollars more in federal revenue, thousands of dollars more in disposable income and millions more jobs Americans deserve. In fact, the IRS recently confirmed that Americans will begin seeing the results of lower taxes by early 2018 in the form of bigger paychecks.