CNN Money — American corporations are chipper about tax reform. That’s been great news for some workers.
On Thursday, Walmart became the latest of dozens of companies to announce one-time bonuses related to the new tax law. Notably, the company also said it would raise its minimum wage to $11 an hour.
There are plenty of reasons for companies to reward workers right now. The economy is doing well, and unemployment is at a low 4.1%. In a tight labor market, companies often need to pay more and provide better benefits in order to fill open positions.
But the new tax law signed by President Trump certainly frees up a lot of cash. It cut the corporate tax rate from 35% to 21%.
Here’s a sampling of who is passing some of those savings along to employees.
The airline said on January 2 that it would give 130,000 employees a $1,000 bonus because of the new tax law.
American hasn’t been paying federal income taxes because of substantial losses in the past, but CEO Doug Parker said in a letter to team members that the tax package will give the company a boost down the road.
“We will be able to invest even more in aircraft and facilities, and we will be able to do so with even greater confidence about the future,” he said.
The telecom giant said on December 20, 2017 — the day Congress passed the tax bill — that it would give 200,000 U.S. employees a $1,000 holiday bonus.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” CEO Randall Stephenson said in a statement.
(AT&T is working to acquire CNN parent company Time Warner. The Justice Department sued to block the deal in November.)
Bank of America
The bank said on December 22, 2017 that those making up to $150,000 per year, or about 145,000 workers, would receive a one-time bonus of $1,000.