January 23, 2018

Main » AT&T, Boeing And Fifth Third Pass Tax Cut Savings To Workers

AT&T, Boeing And Fifth Third Pass Tax Cut Savings To Workers

22 December 2017

AT&T Inc. and Comcast Corp. said they would pay a $1,000 bonus to most of their USA workers-more than 300,000 people combined-once the president signs the legislation.

Fifth Third Bancorp, a regional bank based in Cincinnati, said it will raise the minimum wage for all of its almost 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 December 25. The Dallas-based carrier will also pay a $1,000 bonus to more than 200,000 USA -based employees who are union-represented, non-management, and front-line managers. In contrast, Boeing intends to invest in employee training and charity work as part of their tax cut. But some of these announcements come across as more gimmicky than others, and it's not hard to wonder if there are also other motives at work. It says it was pre-planned, the Los Angeles Times reported. Neither company needed a tax overhaul to make these investments possible. Also germane is the fact that the U.S. Justice Department recently sued AT&T in an effort to block its proposed merger with Time-Warner, on antitrust grounds. Boeing successfully pushed the Trump administration to slap heavy trade tariffs on Canadian rival Bombardier Inc., but that commercial war is starting to backfire. "Capital expenditures tend to be 'lumpy.' Providers make significant expenditures to upgrade and expand their networks in one year (e.g., perhaps because a new generation of technology has just been introduced), and then focus the next year on signing up customers and integrating those new facilities into their existing networks, and then make additional capital expenditures later, and so on".

Neither Boeing nor AT&T is exactly short on funds.

How does $50 billion over five years compare to what Comcast already spends on infrastructure?

At least three major companies are building goodwill in the wake of President Donald Trump's tax cuts by finding ways to pass along some of their likely savings to employees.

With these investments, the company expects to add thousands of new direct and indirect jobs.

Total employment at Boeing has been declining over the past few years.

The Tax Cuts and Jobs Act was passed by Congress this week.

As for Fifth Third Bancorp and Wells Fargo, both stand to benefit from the tax plan, and Wells Fargo probably would like to get the government off its back a bit. 75 percent of workers will see an overall increase in pay.

The bank has also been in Trump's sights after employees created fraudulent customer accounts that led to a $100 million fine by the Consumer Financial Protection Bureau.

AT&T, Boeing And Fifth Third Pass Tax Cut Savings To Workers