AT&T celebrates tax reform: How does a $1000 bonus for everyone sound?

Marcus Newton
December 21, 2017

Telecoms giant AT&T has said it will pay a $1,000 (£747) bonus to more than 200,000 workers, as a result of the U.S. tax reform bill being cleared. The Dallas-based telecommunications giant also reiterated its plan to invest an additional $1 billion in the USA next year.

AT&T, the second largest wireless company in the USA, paid about $6.5bn in taxes at an effective rate of about 33% in 2016, according to federal filings. 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. Even as Stephenson praised the president, the administration's Justice Department is busy preparing its antitrust case against AT&T's $85.4 billion acquisition of Time Warner.

In a statement, AT&T CEO Randall Stephenson hailed "Congress, working with the President" for taking a "monumental step" that will "create good-paying jobs". "So that's pretty good", he said.

U.S. President Donald Trump speaks during a rally at the St. Charles Convention Center on November 29, 2017 in St. Charles, Missouri.

In touting the GOP tax overhaul, Trump has repeatedly emphasized the importance of creating jobs.

Man, this tax cut news just keeps getting worse and worse.

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AT&T also increased its U.S. capital expenditures budget by $1 billion.

Boeing released a statement announcing "immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law". Boeing, a major defense contractor, gets almost one-quarter of its revenue from the federal government.

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.

Trump's Justice Department shocked the business world last month by suing to block the takeover of Time Warner.

AT&T says it will pay a $1,000 bonus to more than 200,000 United States employees after the GOP tax bill is enacted - an announcement sure to please Republican lawmakers who have been pitching corporate tax cuts as a boost for American workers.

Other reports by MaliBehiribAe

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