AT&T to pay $1000 bonus due to tax cuts

Once President Donald Trump signs the tax reform into law, pledged AT&T in an announcement, the company will invest $1 billion into the U.S. It will also give a $1,000 bonus to more than 200,000 employees.

Employees of the No. 2 USA wireless carrier who will receive the bonus are all "union-represented, non-management and front-line managers", AT&T said in a statement.

"Congress, working closely with the president, took a monumental step to bring taxes paid by USA businesses in line with the rest of the industrialized world", said AT&T CEO Randall Stephenson.

AT&T will provide over 200,000 of its workers with a $1,000 bonus and will make a $1 billion increase to is capital expenditures budget.

The House passed the $1.5 trillion tax bill on Wednesday on a 224-201 vote, sending the legislation to the White House for Mr. Trump's signature.

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.

Many critics of the proposal, which reduces corporate tax rates in an effort to improve business liquidity and drive growth, say the Republican tax plan will not help growth at all.

In touting the GOP tax overhaul, Trump has repeatedly emphasized the importance of creating jobs. How's AT&T going to pay for it?

Boeing gave thanks to Congress as it announced an immediate commitment of $300 million going toward "employee-related and charitable investment" as a result of the tax bill's passage. Companies have indicated that they mostly plan to use their savings to buy back stock and pay more dividends, benefiting the wealthy owners of corporate stock. As BuzzFeed pointed out, the company made the same announcement in 2011, also alongside a president - Barack Obama.

Stephenson last week stepped down from the boards of directors of Ferguson-based Emerson and Chicago-based Boeing, saying he'd be "extremely busy" in 2018 defending his company's merger deal with Time Warner. The company also increased its capital expenditures budget by $1 billion in the USA.

"All union-represented, non-management and front-line managers" are eligible for the bonus. If the companies don't extend the deadline, AT&T must pay Time Warner a $500 million breakup fee.

On the other hand, AT&T stands to be a potential beneficiary of another recent move by the Trump administration: the repeal of net neutrality regulation.

Related news

[an error occurred while processing the directive]