More Businesses Celebrate Tax Reform By Investing In Employees
Several corporations applauding the Republican tax reform plan announced investment projects and employee bonuses to cheer the coming lower corporate tax rates.
Aerospace company and defense contractor Boeing announced Wednesday that it would invest $300 million in charitable projects, employee training and education, and facilities improvements for Boeing locations.
“On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States,” Dennis Muilenburg, Boeing chairman and CEO, said in the statement. “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
Boeing will put $100 million toward charitable causes in education, projects in Boeing communities, and for veterans and military personnel; $100 million for training and education to help employees grow in careers; and $100 million to improve Boeing facilities.
Telecom giant AT&T also found a unique way to celebrate the passage of the Tax Cuts and Jobs Act, which heads to the White House for President Donald Trump’s signature. AT&T announced Wednesday that it will give more than 200,000 employees an extra $1,000 bonus, and invest $1 billion in U.S. projects in 2018. The employee bonuses will be sent out over the holidays if Trump signs the bill into law before Christmas.
Critics of the Republican tax plan, which reduces corporate tax rates in an effort to improve business liquidity and drive growth, say the it will not help economic growth at all.
“CEOs aren’t waiting on a tax cut to jump-start the economy, a favorite phrase of politicians who have never run a company,” former New York City mayor and Democratic mega donor Michael Bloomberg wrote in an editorial. “It’s pure fantasy to think that the tax bill will lead to higher wages and growth.”
NBC’s “Today” show host Savannah Guthrie asked House Speaker Paul Ryan whether he was living in a “fantasy world” for thinking businesses would spend the money saved in paying taxes on growth.
Ryan replied that the corporate tax cuts would likely encourage businesses to “reinvest in the workers, reinvest in the factories, pay people more money, higher wages.”
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