Tax Reform: ‘A Rising Tide Of Economic Optimism’

Tax Reform Bonuses Now Available In Ventis

SEN. MITCH McCONNELL (R-KY): “The rising tide of economic optimism I have been highlighting on the floor is not showing any signs of subsiding. Yesterday alone, three of the nation’s largest companies announced major new investments in the U.S. economy and workforce. Each said their decisions were made possible by the improved business climate created by the landmark tax code overhaul that Congress passed last year. And just this morning, Starbucks has announced that it is permanently raising pay and conferring new benefits like one-time stock bonuses and expanded paid leave. This major investment in its U.S. workforce will affect more than 150,000 employees.” (Sen. McConnell, Floor Remarks, 1/24/2018)


STARBUCKS: ‘The World’s Biggest Coffee Chain,’ ‘Said Wednesday It Will Increase Wages And Enact Other Perks For More Than 150,000 U.S. Employees’

“Starbucks said Wednesday it will increase wages and enact other perks for more than 150,000 U.S. employees as a direct result of recent tax reform, joining other corporations in rewarding workers.” (“Starbucks To Increase Wages, Improve Benefits For 150K Employees,” Fox Business, 1/24/2018)

  • “Starbucks Corp will use some of the savings from the new U.S. corporate tax cuts to give domestic employees pay raises, company stock and expanded benefits with a combined worth of more than $250 million, the company said on Wednesday. With the announcement, the world’s biggest coffee chain joins companies like Walmart, Apple Inc, Comcast Corp, and American Airlines Group Inc in sharing their tax savings with employees...” (“Starbucks To Boost Pay, Benefits After U.S. Lowers Corporate Taxes,” Reuters, 1/24/2018)

“Seattle-based Starbucks said it will give hourly and salaried employees, who received pay raises in January, a second wage increase in April…” (“Starbucks To Boost Pay, Benefits After U.S. Lowers Corporate Taxes,” Reuters, 1/24/2018)

“Starbucks is also awarding workers stock grants worth a total of more than $100 million to those employed by the chain as of Jan. 1, 2018. Retail employees will receive at least a $500 grant, while store managers will receive grants of $2,000, the chain said.” (“Starbucks To Increase Wages, Improve Benefits For 150K Employees,” Fox Business, 1/24/2018)

“Starting July 1, all employees will accrue paid time off to care for themselves and loved ones when they are ill. Starbucks said the national benefit was designed to match or exceed the benefits some partners were already due under existing city or state-mandated paid sick leave laws. Starbucks also expanded its parental leave policy for cafe workers, giving non-birth parents up to six weeks of paid leave when welcoming a new child.” (“Starbucks To Boost Pay, Benefits After U.S. Lowers Corporate Taxes,” Reuters, 1/24/2018)


DISNEY: For 125,000 American Workers, ‘Disney To Give Employees $1,000 Bonuses In Wake Of Tax Reform’

“Walt Disney Co. said it will give employees a one-time cash bonus of $1,000, joining a growing list of companies handing out awards in the wake of federal tax reform.” (“Disney To Give Employees $1,000 Bonuses In Wake Of Tax Reform,” Bloomberg, 1/23/2018)

  • “Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company, today announced, more than 125,000 eligible employees will receive a one-time $1,000 cash bonus. The Company will also make an initial investment of $50 million in a new and ongoing education program specifically designed to cover tuition costs for hourly employees. The two new initiatives are a result of the recently enacted tax reform and represent a total allocation of more than $175 million in this fiscal year.” (Disney, Press Release, 1/23/2018)

JPMORGAN CHASE: ‘Announced A $20 Billion, Five-Year Comprehensive Investment To Help Its Employees, And Support Job And Local Economic Growth In The United States’

“J.P. Morgan Chase announced plans to spend $20 billion over five years to raise hourly pay for a portion of its workforce, add jobs and open 400 branches in new U.S. locations. The bank says tax breaks, reduced regulation and an improved business climate have made it possible to make these changes, which also includes adding 4,000 jobs and increasing its charitable giving.” (“JP Morgan Chase To Build 400 New Branches, Raise Wages Because Of The Tax Cut,” CNBC, 1/23/2018)

JPMORGAN CHASE: “JPMorgan Chase today announced a $20 billion, five-year comprehensive investment to help its employees, and support job and local economic growth in the United States. The firm has always believed that the highest and best use of its capital is to support employees and local communities and businesses by doing what a bank is supposed to do: lending and investing.” (JPMorgan, Press Release, 1/23/2018)

  • “The $20 billion investment will focus on the following key areas … Investing in employees with increases to wages and benefits. … The firm will raise wages from between $12/hour and $16.50/hour to between $15/hour and $18/hour in over 100 cities, depending on the local cost of living, effective February 25. This will benefit 22,000 full-and part-time U.S. hourly employees, notably in branches and customer service centers, in an effort to attract and retain great employees. … Later this month, eligible employees will receive an annual award of $750, which was communicated in December 2017.” (JPMorgan, Press Release, 1/23/2018)

VERIZON: For Verizon Employees, Stock Bonuses ‘Could Total Over $400 Million’

“Verizon says employees (other than top management) will receive 50 shares of restricted stock, the price of which will be set on February 1. The award could total over $400 million, based on Verizon's current share price. Shares traded around $53 a share on Tuesday, after quarterly earnings were released.” (“Verizon Says Many Workers Will Receive Shares Of Stock,” CNBC, 1/23/2018)

  • VERIZON: “Tax-reform legislation will have a positive impact to cash flow from operations in 2018 of approximately $3.5 billion to $4 billion. The incremental cash flow will be used primarily to strengthen Verizon’s balance sheet. Additionally, Verizon will announce later today how employees will further share in the company’s success, and the company will also be increasing contributions to the Verizon Foundation by $200 million to $300 million over the next two years.” (Verizon, Press Release, 1/23/2018)


Related Issues: Jobs, Tax Reform, Economy, Middle Class, Taxes