The truth about AT&T's $1000 bonus for workers

Share

AT&T had previously said it would invest $1 billion in the US if "competitive" tax reform legislation was passed, and has said that tax reform framework could increase demand for AT&T's services.

Soon after Republican lawmakers sent the newly passed tax reform bill to President Donald Trump's desk on Wednesday, AT&T and Boeing announced that they will issue additional employee bonuses and other investments as a commitment to support the USA economy. For union-represented, non-management employees at AT&T, the bonus is another temporary boost that ultimately fits into the small fraction of the total tax benefits that the bill will bring. "This tax reform will drive economic growth and create good-paying jobs".

In the 2016 USA elections, Republican candidates got 62 percent of $2.7 million in donations to federal candidates from AT&T's political action committee that pools contributions from employees, according to the Center for Responsive Politics.

AT&T's $1 billion investment will go toward the company's fiber build in homes and businesses.

AT&T has been one of the most vocal proponents of President Trump's new tax bill, so it makes sense that it didn't waste any time celebrating its final vote in the House today. In other words, the working men and women who President Donald Trump has promised will be helped by the tax reform bill. Well, the corporate tax rate is being cut by 40 percent; that's the centerpiece of the new bill.

AT&T expects the bonuses will be delivered over the holidays if the law is enacted before Christmas.

More news: Hearts end Celtic's 69-game unbeaten domestic run in emphatic style

Wells Fargo announced a similar measure Wednesday, saying it would pay more than 13,500 employees a bonue and raise the minimum wage for its workers to $15 after the Republican tax plan is passed.

The announcement comes more than a month after AT&T proposed a $85 billion merger with Time Warner - a deal the Trump administration has blocked with a lawsuit.

"It's good for our communities, employees and Fifth Third Bank", CEO Greg Carmichael said in a statement.

The telecom giant also said it would increase its capital expenditures budget by $1 billion in response to the landmark legislation, which cuts the corporate tax rate from 35 to 21 percent.

AT&T has been in the political news quite a bit recently, due to the intrigue surrounding the Justice Department's decision to block their merger with Time Warner.

Share