202-224-4515, Katie Niederee and Julia Lawless
Ten Ways Tax Reform is Helping American Businesses & Workers
Throughout the tax reform debate, Finance Committee Chairman Orrin Hatch (R-Utah) emphasized the impact that tax reform would have on workforce investments. Already, in response to the new tax reform law, hundreds of companies have acted to boost wages and give bonuses, resulting in higher paychecks and greater compensation for millions of American workers.
These workforce investments are not “one-size-fits-all.” Whether it’s boosting wages, giving bonuses, expanding operations, or strengthening retirement programs, companies of all sizes are using their tax savings in ways that work for their businesses and their workers.
Take a look at 10 ways that companies across the country are using their tax reform savings to reinvest in their businesses:
1. Washington Federal
Because of tax reform, Washington Federal announced it would give all employees making less than $100,000 annually a 5 percent merit-based wage increase, invest in employee training programs, hire 25 percent more technology staff, add a technical office in Boise, Idaho, and donate $5 million to community non-profits.
Foster City, California
This week, Visa announced it will strengthen contributions to its employee’s 401(k) retirement savings plans because of tax reform. Visa will now increase its 2-to-1 match from 3 percent of a worker’s salary to 5 percent, meaning it will contribute up to 10 percent of base salary.
3. Zions Bancorp.
Salt Lake City, Utah
As a result of tax reform, Zions Bancorp. announced it would increase compensation for 40 percent of its employees, provide 80 percent of its employees $1,000 bonuses, and contribute $12 million to the Zions Bancorporation Foundation, which is expected to benefit the local communities where Zions does business.
AT&T announced that it would give more than 200,000 workers $1,000 bonuses and increase its capital expenditures budget by $1 billion as a result of tax reform.
5. Kanas City Southern
Kansas City, Missouri
In response to tax reform, Kansas City Southern announced it would give its subsidiaries’ employees a $1,000 bonus. Kansas City Southern is a transportation holding company with railroad investments.
6. Copperleaf Assisted Living
Copperleaf Assisted Living announced it will give its 175 employees bonuses of up to $600 as a result of tax reform. The owners said they would give away all of the company’s estimated $60,000 dollars in tax savings from the legislation.
Aflac announced it would make $250 million in investments to strengthen its workforce, promote growth, and bolster its commitment to supporting child cancer initiatives.
Following tax reform, Sheffer Corporation announced new investments in its plants and equipment and that all of its 126 employees would be given $1,000 bonuses.
New York, New York
JetBlue announced it would give $1,000 bonuses to each of its 21,000 crew members, passing tax reform’s benefits to its workers.
10. Royal Hawaiian Heritage Jewelry
Royal Hawaiian Heritage Jewelry’s owner said she plans expand operations as a result of tax reform, hoping to open up two new stores and reinvest in her business.
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