Tax Reform Is Working For Kentucky

Sen. McConnell: ‘Every Day, More Evidence Piles Up That Tax Reform Is Already Working For The American People’

SEN. MITCH McCONNELL (R-KY): “Every day, more evidence piles up that tax reform is already working for the American people. The headlines are full of major employers announcing worker pay raises, bonuses, and new investments. For example, Brown Forman — a global spirits company headquartered in Louisville that employs more than 1,000 Kentuckians — announced yesterday that tax reform will enable it to start a new foundation for community investment and commit $120 million for employee pensions.” (Sen. McConnell, Floor Remarks, 1/25/2018)

  • SEN. McCONNELL: “I’m already hearing from the small business owners this law was designed to help. ... In Nicholasville, Kentucky, another constituent of mine operates a rental business for event equipment. He recently explained, quote, ‘The relief that will be provided by the new tax bill gives companies like mine the capital to purchase new inventory…as well as hire additional employees.’ American enterprise is thriving. Tax reform helped make it happen.” (Sen. McConnell, Floor Remarks, 1/25/2018)

Kentucky Workers, Businesses, And Communities Are Benefitting From Tax Reform 

BROWN-FORMAN: “Brown-Forman said it would establish its first charitable foundation with $60 million to $70 million... The company credited federal tax reform and strong results recently…” (“Brown-Forman Is Using Tax Cut Money To Create A Massive Foundation And Pay Shareholders,” Louisville Courier Journal, 1/24/2018)

  • “In a statement issued late Tuesday afternoon after its board of directors met, Brown-Forman said it wanted to set up the charitable foundation – its first – to supplement and stabilize the amounts the company provides annually to non-profit groups. It now donates to the Louisville Ballet, the Orchestra, the Kentucky Opera and other educational and human service endeavors in Louisville, Kentucky and Tennessee from operating funds, said spokesman Phil Lynch. The goal is to provide a stable source of funding for charitable giving that's not tied to the company's performance. It would continue to provide some operating funds for charities, he said. ‘It'll be more enduring and as the assets grow, we'll have the opportunity to give more,’ Lynch said, adding ‘if we have a down year (now), we have to give less.’ The foundation, once established, could generate $3 million to $5 million a year, depending on how the investments fare, he said.” (“Brown-Forman Is Using Tax Cut Money To Create A Massive Foundation And Pay Shareholders,” Louisville Courier Journal, 1/24/2018)

GOFF TENTS & EVENTS, Nicholasville, KY: “In the rental industry the value of our business is based on our assets. There is currently not enough equipment held in the state of Kentucky to complete the jobs which are being performed which forces companies to rent items from outside of the state. This causes a loss of income to the companies as well as a loss of sales tax revenue to the state. The relief that will be provided by the new tax bill gives companies like mine the capital to purchase new inventory that can be used to complete rental jobs as well as hire additional employees to sell, maintain and service the items. I appreciate Senator McConnell’s work to provide tax relief to Kentucky small businesses like mine.” (Sen. McConnell, Constituent Mail, 2018)

VERST LOGISTICS, Walton, KY: “Verst Logistics confirmed today that they distributed $500 bonuses to all full-time employees on December 29, 2017. As part of an internal communication, President and CEO Paul Verst wrote that, as a result of the approved tax reform legislation, ‘Verst Logistics will realize reduced tax obligations going forward.’ Speaking directly to employees, he added, ‘The combination of the efforts of our employees to meet and exceed our customer's requirements, coupled with a more favorable tax environment, makes for a great future for our company. I want to be sure that you and your families share in the benefits of your accomplishments and the new tax reform legislation.’ In a more recent statement, Paul Verst commented, ‘We are excited to be included in the growing list of organizations that believe the new tax plan will help our economy by creating new opportunities for business and putting more money in the hands of hard-working people across the U.S.’” (Verst Logistics, Press Release, 1/24/2018)

Thousands Of Kentuckians Will Be Receiving Bonuses & Wage Hikes

WALMART, Announcement Affecting 18,000+ Workers In Kentucky: “Today, Walmart announced plans to increase the starting wage rate for all hourly associates in the U.S. to $11, expand maternity and parental leave benefits and provide a one-time cash bonus for eligible associates of up to $1,000. The company is also creating a new benefit to assist associates with adoption expenses. The combined wage and benefit changes will benefit the company’s more than one million U.S. hourly associates.” (Walmart, Press Release, 1/11/2018)

HUMANA, Which Employs 12,000+ In Kentucky: To more than 50,000 employees: “Humana will extend the offer new incentive pay and increase its minimum wage for employees, a move that it credited to federal tax reform. A note sent to employees said that ‘like many U.S. companies, Humana will begin benefitting this year from a lower corporate income tax rate. This provides Humana with the opportunity to make an investment in our employees, using the proceeds from tax reform to further the long-term financial health and well-being of our employee population.’” (“Humana Will Share The Wealth From Tax Cut With New Incentive Pay, Boosted Minimum Wage,” Courier Journal, 1/17/2018)

U.S. BANCORP, Which Employs 3,000 In Kentucky: “Minneapolis-based U.S. Bancorp today announced a $1,000 bonus for nearly 60,000 employees, a new minimum wage of $15 per hour for all hourly employees and a $150 million contribution to the U.S. Bank Foundation.” (“Banks Continue Post-Tax Reform Wage Increases, Community Investments,” Banking Journal, 1/2/2018)

AT&T, Which Employs 2,500+ In Kentucky: “AT&T Is Giving $1,000 Bonuses To 200,000 Employees After Tax Bill: AT&T was quick to respond to news of U.S. tax reform, announcing it would give some employees bonuses once the legislation is signed into law. The telecom giant said in a press release Wednesday that it would give more than 200,000 U.S. union members a special bonus of $1,000.” (“AT&T Is Giving $1,000 Bonuses To 200,000 Employees After Tax Bill,” CNBC, 12/20/2017)

ATLAS AIR WORLDWIDE, Announcement Affecting 200+ Workers In Its Kentucky Hub: “…the Company will be providing a special one-time bonus payment to all full-time flight and ground staff employees below the officer level… This bonus will be funded by a tax refund that the Company expects as a result of the newly enacted U.S. tax law. The $1,000 bonus will be provided in early January and is subject to applicable federal, state and local withholding taxes.” (President Bill Flynn, E-mail to employees, 12/29/2017)

TURNING POINT BRANDS, INC. Which Employs 100+ In Kentucky: “…has announced it will deliver bonuses to 107 employees thanks to President Donald J. Trump’s signing of the Tax Cuts and Jobs Act. ‘We can attest that this tax package is directly benefiting working people, just as our national leaders promised when they started this effort.’ ‘We are giving $1,000 bonuses as a direct result of tax reform becoming law. These employees would not normally get a bonus like this. Our dedicated employees are responsible for our success, and we are very pleased to announce this bonus for them during the holiday season. We are extremely happy with tax reform and wanted our valued employees to feel the benefits,’ Chief Executive Officer Larry Wexler said. ‘We can attest that this tax package is directly benefiting working people, just as our national leaders promised when they started this effort.’” (Turning Point Brands, Inc., Press Release, 12/28/2017)


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