30 January 2018

Businesses Continue To Credit Pro-Growth Tax Reform In Announcing New Benefits

New year, new tax code, new benefits

American Family Insurance
American Family Insurance boosts investments in its people, communities and customers
“Our success rests with our people who are dedicated to helping our customers,” said Bill Westrate, American Family Insurance president. “These changes demonstrate our commitment to our people, today and into the future, with expanded benefits and educational support, and to the communities where we do business.”

Apple accelerates US investment and job creation
“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

125,000 Disney employees to receive $1,000 cash bonus due to tax reform
“We are directing approximately $125 million to our cast members and employees across the country and making higher education more accessible with the launch of this new program,” CEO Bob Iger said in a statement.

Exxon Mobil to invest $50 billion in US over 5 years, citing tax reform
“These positive developments will mean more jobs and economic expansion across the United States in a myriad of industries,” said Darren Woods, Chairman and CEO of Exxon.

FedEx to Give Wage Increases, Bonuses to Workers
FedEx says it’ll be giving wage increases, bonuses and make a voluntary $1.5 billion contribution to the company’s pension plan, citing recent tax reform legislation.

Fiat Chrysler
Fiat Chrysler to invest more than $1 billion in Michigan plant and give $2,000 bonuses in response to tax reform
CEO Sergio Marchionne said in a statement that these announcements reflect the company’s ongoing commitment to manufacturing in the U.S. He also cited the recently signed tax bill as an opportunity to share the savings with Fiat Chrysler employees.

Home Depot
Home Depot hourly employees to receive up to $1,000 bonus due to tax reform
“This incremental investment in our associates was made possible by the new tax reform bill,” Chief Executive Officer Craig Menear said in prepared remarks. “We are pleased to be able to provide this additional reward to our associates.”

JP Morgan
JPMorgan to raise pay, hire staff in $20 billion investment push
“Having a healthy, strong company allows us to make these long-term, sustainable investments,” JPMorgan Chief Executive Jamie Dimon said in a statement. “We are excited about further investing in our outstanding workforce and expanding into new U.S. markets.”

Nationwide Insurance
Nationwide gives big bonuses, credits tax reform
In an email sent to employees, the company announced it will provide bonuses of $1,000 and increase 401(k) matching from 50 percent on the first 6 percent of employee contribution to 50 percent on the first 7 percent of employee contribution.

Pacific Power
Pacific Power says they will lower rates with tax cuts
“We strive to provide our customers reliable service while keeping rates low,” said Stefan Bird, President and CEO of Pacific Power. “The benefit of this tax cut should be passed on to our customers – and we will work with our regulators and stakeholders on the best way to do that.”

Pfizer Plans $5 Billion Boost in U.S. Manufacturing From Tax Law Changes
Pfizer Inc. reported a surge in profit due to gains from the recently enacted tax law, and the drugmaker said it plans to pay a tax of $15 billion on overseas profits over the next eight years. The company also said it plans to invest about $5 billion in capital projects in the U.S. over the next five years, including bolstering its manufacturing presence.

Southwest Airlines
Southwest Airlines Rings In The New Year Under Tax Reform With Employee Bonus, Charitable Contribution, And Further Investment In Its Boeing Fleet
“We applaud Congress and the President for taking this action to pass legislation, which will result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular,” said Southwest’s Chairman and Chief Executive Officer Gary Kelly. “We are excited about the savings and additional capital, which we intend to put to work in several forms—to reward our hard-working Employees, to reinvest in our business, to reward our Shareholders, and to keep our costs and fares low for our Customers.”

Starbucks to boost worker pay and benefits after US lowers corporate taxes
“Investing in our partners has long been our strategy, and due to the recent changes in U.S. tax law, we are able to accelerate some significant partner investments,” Chief Executive Kevin Johnson said in a letter to employees.

U.S. Bancorp
U.S. Bank to Invest in Employees, Community and Customers as a Result of Tax Reform Package
“We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers,” said Andy Cecere, President and Chief Executive Officer, U.S. Bancorp. “We are proud of our people and their commitment to our customers and communities. We felt it was important to reward their hard work and dedication with this special bonus, the minimum wage increase and the health care enhancements.”

Verizon and Disney announce bonuses for employees
“Our employees drive the innovation and success of our business so it’s vital that we all share in the success of not only tax reform, but the overall performance of Verizon,” CEO Lowell McAdam said.

Walmart to Raise U.S. Wages, Provide One-Time Bonus and Expand Hourly Maternity and Parental Leave
“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” said Doug McMillon, Walmart president and CEO. “It’s our people who make the difference and we appreciate how they work hard to make every day easier for busy families.”

Courtney Parella

Communications Director