Illinois Examples of Tax Reform Good News

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Illinois. (Additions to this list can be sent to jkartch@atr.org)
Rockford Ball Screw (Rockford, Illinois) - Hiring 25 new employees, expanding plant by 30,000 square feet:
Linda McGary broke ground Thursday on a 30,000-square-foot expansion at Rockford Ball Screw, the manufacturing firm her father launched in 1973 in the basement of their family home.
McGary, 56, is quick to point out that she’s neither an engineer nor a skilled machinist, but she has a clear vision for Rockford Ball Screw: growth.
The company of 70 employees is looking to hire 25 more as part of the expansion — to be completed by mid-November — at its 60,000-square-foot plant in Southrock Industrial Park. Manufacturers often green light expansions after landing a big purchase order that will outpace present capacity, but that’s not the case with Rockford Ball Screw.
Fueling her company’s expansion, McGary said, are lower corporate tax rates and rules under the Tax Cuts and Jobs Act signed into law last year by President Donald Trump. And Rockford Ball Screw has a promising shot, she said, at reviving a business relationship with a firm that years ago was one of its biggest customers. - June 28, 2018, Rockford Register Star article excerpt
Atlas Tool Works, Inc. (Lyons, Illinois) – increased 401(k) contributions for employees:
In the wake of the bill’s passage, some national companies issued well-publicized bonuses to their employees. Participating companies included AT&T, Bank of America, Comcast and Walmart, as ConservativeActionNews.com reported.
Mottl told Roskam his firm had followed suit, increasing the 401(k) contribution to workers. – June 28, 2018 DuPage Policy Journal article excerpt
Sko-Die (Morton Grove, Illinois) - 3% wage increase, investing $1 million in new equipment:
Sko-Die has been in the Steininger family since its founding in 1947—and after 71 years in business, tax reform is allowing them to expand their facility, update their technology and reward their employees.
“The first thing I did when I found out what my tax savings would be? I took that money and gave a raise to all the employees,” said Sko-Die’s president, Patrick Steininger. “It came to about 3 percent per employee, on average.”
The total price for Steininger’s technology investment? “About $1 million.”
“Without tax reform, we wouldn’t have made these investments,” Steininger said. “Absolutely not.” - August 24, 2018, National Association of Manufacturers’ Shopfloor Blog excerpt
Nicor Gas (Naperville, Illinois) – the utility will pass on tax reform savings to customers:
Nicor Gas customers can expect their rates to go down about $1.73 a month, effective in early May, the company said.
The Illinois Commerce Commission has approved a reduction of Nicor Gas' distribution rates totaling $43.6 million. The reduction stems from the Tax Cuts and Jobs Act of 2017, which lowered Nicor Gas' annual tax expense, according to a statement.
“We are pleased to share that benefit with our customers," said Nicor Gas President Melvin D. Williams – May 3, 2018, Daily Herald article excerpt
Illinois American Water (Urbana, Illinois) – The utility will pass along tax cut savings to customers:
The Federal Tax Cuts and Jobs Act decreased the corporate tax rate from 35 percent to 21 percent. On April 19, 2018, the Illinois Commerce Commission approved an order for Illinois utilities to pass savings from the national tax reform on to customers.
Illinois American Water is returning about $10.8 million to customers over the next 11 months.
Illinois American Water customers will see a credit on their May 2018 bill continuing through March 2019. After this initial 11-month timeframe, the credit amount will be reconciled and adjusted appropriately. The new credit amount will be communicated at that time.
According to Illinois American Water President Bruce Hauk, the credit to bills is a benefit provided through the financial model of a regulated investor-owned utility. He said, "We are pleased to be able to share this savings with our customers. In addition to this savings, our team works hard every day to control operational and maintenance costs so we can invest in our critical infrastructure and minimize impact to customer bills."
Depending on service area, Illinois American Water water service customers will see a credit on their bill for between about $1.39 a month to $2.35 a month. Wastewater service customers will see a credit on their bill between about $1.20 a month to $3.90 a month. – May 7, 2018, Business Wire article excerpt
Commonwealth Edison (commonly known as ComEd) (Chicago, Illinois) – the utility will pass tax savings to customers:
The recent annual formula rate filing also included an advancement of $205 million from anticipated savings in 2019 as a result of the federal tax cut and jobs act.
“In this filing, we have proposed to the ICC that we advance into 2019 with savings that customers would realize through the lower tax rates. The formula ratemaking process allows for such timely distribution of savings. It also would help to extend the stable rate environment that we have had for some time since before the smart grid program came and launched,” said Gomez. – April 25, 2018 The Chicago Citizen press release excerpt
The Rabine Group (Schaumburg, Illinois) — Increased raises and bonuses, increased charitable donations, increased hiring, increased research and development spending, and company expansion:
Take my company, the Rabine Group, a group of nine small Illinois-based companies providing paving, roofing, property assessment technology, dump trucking and exterior facility maintenance and construction. Because of tax cuts, our companies are able to do additional things that will spark economic growth. These include raises and bonuses for our teammates, larger donations to nonprofits, more hiring and jobs, larger research and development (R&D) spending, and expansion.
We will be giving raises that are roughly 50% larger than the past eight years and also larger bonus incentives. Our donations to the nonprofit foundations we support will in many cases double in 2018, and we will be adding jobs across the board from entry-level to leadership.
The combination of small business and corporate tax cuts has created small business optimism like we haven’t seen in more than a decade. Small businesses like ours work for great companies like Exelon, Walmart, Home Depot, and Lowe’s. And when they are growing, we can count on more opportunity. — Feb. 21, 2018 USA Today op-ed excerpt
Anamet Electrical Inc. (Mattoon, Illinois) - Increasing employee wages and investing in new equipment:
In oral testimony June 20, 2018, to the House Energy and Commerce Subcommittee on Energy ANAMET Electrical President Sam McCammon echoed the NEMA survey results citing that ANAMET had made investments in its employees and equipment as a result of tax reform.
"After foregoing pay raises for consecutive years, we were finally able to give our employees a much-deserved wage increase," McCammon said. "Because of the increase in the Section 179 deduction limit from 100 percent of $500,000 to 100 percent of $1,000,000, and 50 percent above $1,000,000, ANAMET is planning to increase our capital expenditures in 2019 by more than 100 percent from normal investment levels, which will better position us among our competition." - June 20, 2018 National Electrical Manufacturers Association press release excerpt
Ulta Beauty, Inc. (Bolingbrook, Illinois) — Bonuses for hourly associates, totaling $12.3 million.
Dot Foods (Mount Sterling, Illinois) -- $500 bonuses for 4,800 employees:
A Mount Sterling company is joining the growing ranks of businesses sharing the benefits of a tax overhaul with its employees.
All of Dot Foods’ nearly 4,800 full-time workers will get a $500 bonus.
The food industry redistributor said the bonuses will go to employees at all 12 Dot locations in the United States and both Dot Foods Canada locations. The one-time bonus will be paid in mid-March to those who were employed with Dot and Dot Transportation at end of 2017.
“We’re really happy to be able to give this bonus to our employees,” Dot Foods CEO Joe Tracy said. “We surprised them by announcing the bonus during our National Business Meeting in St. Louis in late January. Our people are Dot’s greatest asset, and the tax reform bill offered a great opportunity to reinvest in our employees.”
The 2017 Tax Cuts and Jobs Act lowered the federal corporate tax rate from 35 percent to 21 percent when President Trump signed it onto law in December. The bill also changed the way companies operating internationally are taxed.
“The tax legislation is good news for Dot and many other companies,” Tracy said. “It’s going to put us in a better position to compete internationally and continue to invest in our business. We owe our continued growth and success to our employees. Their hard work every day makes it possible, so it was an easy decision to recognize their efforts with this bonus when the opportunity arose.” – Feb. 17, 2018 Jacksonville Journal Courier article excerpt
Five Senses Spa, Salon and Barbershop (Peoria, Illinois) -- $500 bonuses for 20 employees; the company is also looking into additional employee benefits in 2018.
Paola Hinton’s hands were shaking in December as she pulled out bundles of cash and gave each of her 20 employees a $500 bonus. No one in the crowded back room at Five Senses Spa, Salon and Barbershop in Peoria had ever seen $10,000 in cash, and Hinton had it all in a little briefcase.
The employees’ faces lit up, recalled Hinton, who launched the business almost 12 years ago. She has never been able to give bonuses like this before, but the new federal tax law passed late last year made it possible, she said.
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Hair stylist Breitanya Williams spent part of her bonus fixing the taillights on her Buick Rendezvous — the only vehicle she and her husband own that will fit all four of their young children.
Another portion of Williams’ extra money went toward subscribing to a workout program. “That’s like my life-changing part,” said Williams, 25. “I just had my fourth child in five years … (and I’m) trying to make my family and myself healthier.”
Williams’ colleague Laura Naven also put her bonus toward her family. She paid down hospital bills left over from when she gave birth to her 4-month-old and put some money into savings.
“I have two kids, so building up the savings is key right now,” said Naven, 33, general manager at Five Senses. -- Jan. 26, 2018 Chicago Tribune article excerpts
Griffith Trucking, Broadway Express, Heartland Peterbilt, Heartland Classics (Effingham and Newton, Illinois) – $1,000 bonuses:
In President Trump’s State of the Union address Tuesday evening, he made the case that his recent tax law is the reason why companies across the country have announced bonuses, wage increases and other benefits for their employees.
Tony Griffith, who owns three companies in Effingham, agrees wholeheartedly. So much so that this week he announced to his 65 full-time employees that he will be giving each of them a $1,000 bonus.
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Husband and wife Kristi and Rich Stoddard, who both work at Heartland Peterbilt, are also excited about the bonuses. With three children, they say it's a more than welcome gesture.
“Anytime your paycheck increases, it’s definitely a good thing for your family," said Kristi Stoddard. "It’s nice to see they’re putting money back into the middle class."
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For the Stoddards and others, every bit counts.
"We’ll be able to pay more bills," said Rich Stoddard. "We might be able to go out for dinner. Do the little things we might not be able to do until this kicks in. Honestly, your paycheck, you know where it’s going even before you get it. Now we have a little extra." – Jan. 31 Effingham Daily News article excerpt
T.J. Maxx – 50 stores in Illinois – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
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A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
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An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
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Instituting paid parental leave for eligible Associates in the U.S.
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Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Dohrn Transfer (Rock Island, Illinois) -- $1,000 bonuses for approximately 1,200 employees; increased capital expenditures:
At least one Quad-Cities company is already giving out bonuses due to the recent federal tax-cut savings.
Dohrn Transfer, with its corporate headquarters for trucking and a company warehouse in Rock Island, has mailed out $1,000 bonuses to all of its approximately 1,200 employees in six Midwest states. About 350 of those work here.
“It was from the tax plan,” Heather Dohrn, vice president of a sales and marketing, said Wednesday, referring to the tax cut signed into law Dec. 22 by President Donald Trump.
“It generated tax savings for our company, and we wanted to share it with our employees," she said. "Even our part-time employees (received the entire bonus).”
Employees began receiving the checks in the mail Monday.
“They were pretty excited,” Ms. Dohrn said. “One thousand dollars goes a long way with hard-working people. It’s exciting to hear what they are doing with it, and that they feel appreciated.
“It’s important for us to make sure we are compensating them and passing on those savings to them, because they are the ones that make us successful,” she added. “Our secret sauce is our employees, so we want to make sure that we are compensating them.”
Ms. Dohrn also said the tax reform was done to stimulate the economy, “so let's get it into the hands of the people that can use it and get it back in the economy and drive things in the right direction.”
The money in bonuses is in addition to the increases that the company will be doing for employees in 2018, she said.
“It’s not like this is a one-time thing,” Ms. Dohrn said. “We are going to continue to reinvest in our employees.”
Ms. Dohrn said additional money from the tax cut savings will be reinvested in equipment and infrastructure by the company to help it continue to grow in 2018. Ms. Dohrn said the company expects about a 10 percent growth this year.” – Jan. 31 2018, The Dispatch/The Rock Island Argus article excerpt
Flavorchem Corp. (Downers Grove, Illinois) -- Because of the Tax Cuts and Jobs Act, the company was able to make a $4 million investment in new equipment.
“During the visit, Flavorchem announced a previously-undisclosed $4 million investment in new equipment helped made possible due to the historic tax reform law enacted last year. Roskam was able to view the upgraded spray dryer and air pollution control device while touring the facility.
Rep. Roskam’s leadership on tax reform supported our long-term, community-focused strategic plan of making a $4 million expansion of our production and enabled us to keep our strong commitment to meeting the highest standards of quality, safety and supply chain contingency, said Ken Malinowski, President of Flavorchem Corporation.” -- July 2, 2018 NAM Shopfloor Blog
Emkay, Inc. (Itasca, Illinois) -- Emkay is a fleet management company that gave $1,000 bonuses to 150 employees:
“EMKAY, Inc. has announced that all full-time employees will receive a $1,000 bonus in response to the tax reform that was just signed by President Trump. EMKAY, a privately-owned fleet management company, wasted no time in taking action to pass the benefits of this reform on to their team.
“With a brighter future for EMKAY and more profitable growth, naturally we are hopeful that these tax changes will become permanent. And then, if so, we will be able to share even more of the tax cut benefits with you – our employees and most valuable asset,” EMKAY President Greg DePace said in a statement to EMKAY employees.” – Jan. 2018 Emkay Inc. statement
LincolnWay Community Bank (New Lenox, Illinois) – $1,500 bonus for 33 permanent employees:
“LincolnWay Community Bank today announced plans to award a one-time $1,500 bonus to most of its employees on February 6.
"We are pleased to be able to provide this additional reward to our employees for continuing to deliver outstanding service to our customers" said Mark Stevens, LincolnWay Community Bank President. "This investment in our employees was made possible by the new tax reform law."
LincolnWay Community Bank currently has 33 permanent employees, at three branches in New Lenox, Mokena and Chicago, who are eligible to receive the tax reform bonus.” -- Feb. 5, 2018 LincolnWay Community Bank announcement excerpt
Ameren Illinois (Chicago, Illinois) – Thanks to the tax cuts, utility customers will have lower bills:
Ameren Illinois electric customers could save an average of $2.50 to $3.00 per month in 2018 and natural gas customers could save an average of $1 per month if the Illinois Commerce Commission (ICC) approves the company's plan to pass savings from the recently approved federal tax cut legislation back to its customers. Customers using both electricity and natural gas could see a combined savings.
In the proposal filed with the ICC today, the company is seeking approval to pass along federal tax savings to electric customers beginning this year. A similar proposal was filed last week on behalf of Ameren Illinois natural gas customers.
"Under the new tax plan, Ameren Illinois’ effective tax rate will decrease by nearly 13%,” said Richard Mark, chairman and president, Ameren Illinois. "The plan we have filed with the ICC gives us the ability to expedite the return of these savings to our customers."
The Energy Infrastructure Modernization Act of 2011 provides a mechanism to return these savings to electric customers, but without filing the petition customers would have to wait until 2020 to receive the benefits. If approved by the ICC, Ameren Illinois customers will begin seeing these savings in March. – Jan. 22 2018, Ameren Illinois press release
AT&T -- $1,000 bonuses to 10,775 Illinois-based AT&T employees. Nationwide, the company also announced a $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“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,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
Lowe's -- 5,000 employees at 38 stores and one distribution center in Illinois. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Home Depot -- 76 locations in Illinois, bonuses for all hourly employees, up to $1,000.
Wal-Mart – 162 locations in Illinois -- 34,600 Illinois-based Walmart and Sam's Club employees are receiving tax reform bonuses ranging from $200 - $1,000 for a state total of $13,720,800. More than 20,000 Illinois-based Walmart and Sam's Club employees are receiving wage increases, for a total of more than $32 million. The starting wage rate was raised for all hourly employees to $11. The company also announced expanded maternity and parental leave and $5,000 for adoption expenses.
U-Haul (Multiple locations in Illinois) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Apple (Apple store locations in Lincoln Park, Michigan Ave, Deer Park, Main Place, Northbrook, Oakbrook, Orland Square Mall, Woodfield, Old Orchard) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
CarMax (Locations in Bloomington, Champaign, and Chicago) – $250-$1,500 bonuses depending on length of service:
“The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company.” – Feb 23. 2018, EPR Retail News article excerpt
Cintas Corporation (Multiple locations in Illinois) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Comcast (Multiple locations in Illinois) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Chipotle Mexican Grill (Multiple locations in Illinois) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Ryder (21 locations in Illinois) -- Tax reform bonuses for employees.
Starbucks Coffee Company (Multiple locations in Illinois) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
Wells Fargo – 19 bank locations in Illinois; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
AbbVie, Inc. (North Chicago, Illinois) -- permanent salary increases for all non-executive employees; increased profit sharing for employees; one additional holiday for U.S. employees.
American Community Bank & Trust (Woodstock, Illinois) -- $500 bonus to each employee; additional employees will be hired.
MB Financial, Inc. (Chicago, Illinois) – base wage increased to $15 per hour; tax reform bonuses; and $7.5 million additional charitable contributions:
MB Financial, Inc., the holding company for MB Financial Bank, N.A. (“MB”), announced today that MB will raise the minimum wage paid to its employees, issue certain one-time bonuses, and donate $7.5 million to the disadvantaged communities in which it operates.
Mitch Feiger, President and CEO MB Financial, Inc., commented, “MB has long believed that our future is undeniably connected to our communities and employees. Because we hold this belief so closely it is only natural that we share the benefits of tax reform.”
As a result of the recently enacted Tax Cuts and Jobs Act of 2017 MB will contribute $7.5 million to the MB Charitable Foundation, specifically to help the most disadvantaged communities where MB operates for the creation of affordable housing, strong educational programs, vital community services, and to accelerate economic development. “Giving is a cornerstone of our culture,” said Rose Bouman, Executive Vice President of MB Financial Bank, “Our programs such as ‘MB on the Block’, wherein over 500 MB employees dedicate a day of service to the community each year, are at the heart of who we are.”
Also as a result of the new tax legislation, MB will raise its minimum wage to $15 per hour and pay certain one-time bonuses. It’s expected that nearly 75% of MB’s approximately 3,600 team members across the country will participate in these new compensation measures. “Our employees are truly different. Their passion sets them apart. It’s no wonder they go beyond every day for our clients, our communities, and each other. I’m thrilled we can pass along the benefits of tax reform to them,” commented Feiger. – Jan. 2 2018, MB Financial, Inc. press release
Turning Point USA (Lemont, Illinois) -- $300 bonuses to all 115 employees.
BancorpSouth Bank (insurance office is based in Itasca) – pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees:
BancorpSouth Bank (NYSE: BXS) today announced an additional investment in its employees, which includes pay increases and /or one-time bonuses to nearly all non-commissioned employees.
The investment of over $10 million in 2018 will benefit 96% of the Company's non-commissioned workforce. Pay increases were effective January 1, 2018.
"We are proud to reward our team with this opportunity since the Tax Cuts and Jobs Act should benefit everyone" said Dan Rollins, Chairman and CEO. "BancorpSouth's continued and future success is based on the economic vitality of the communities we serve and taking care of our teammates allows us to provide the very best service to our customers, communities and shareholders." – Jan. 3, 2018 BancorpSouth Bank press release
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The increased compensation overall at BancorpSouth affected more than 70 percent of all employees, and provided a $1,000 bonus to nearly 20 percent of all employees.
BancorpSouth employs some 4,000 employees in more than 230 locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, plus an insurance location in Illinois. – Jan. 4, 2018 Daily Journal/BizBuzz article
BMO Harris Bank (Chicago, Illinois) – base wage raised to $15 per hour; increased charitable donations:
“BMO Harris Bank has joined an increasing number of financial institutions in raising its minimum hourly wage to $15.
The bank cited the recent federal tax reform, which lowered the corporate income tax rate, in its decision to boost employee compensation.
The new rate is effective immediately, the company said Tuesday. BMO Harris, which is based in Chicago and owned by Toronto's BMO Financial Group, has more branches than any other bank in Wisconsin.
BMO Harris also said it will increase its level of philanthropic community giving by 10% in 2018.
“We’re pleased to share the benefits of the strong economic conditions, and the effects of the recent tax reform changes, with our employees and communities,” David Casper, president and chief executive of BMO Harris Bank, said in a statement. “Our success is tied directly to the communities we serve, and we’re proud of the exceptional job our employees do in providing a great customer experience.” – Jan. 31 2018, Milwaukee Journal Sentinel article excerpt
Boeing Company (Chicago, Illinois) -- $100 million for workforce development; $100 million for infrastructure and facilities; $100 million in charitable donations:
Boeing [NYSE: BA] Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing.
"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," said Muilenburg. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country."
The simpler tax code and lower tax rate are closer to those enjoyed by Boeing's global competition and will have a clear and direct benefit to Boeing, its employees, and other stakeholders.
"For Boeing, the reforms enable us to better compete on the world stage and give us a stronger foundation for the investment in innovation, facilities and skills that will support our long-term growth," Muilenburg said.
While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:
- $100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing's focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
- $100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
- $100 million for "workplace of the future" facilities and infrastructure enhancements for Boeing employees.
"Each of these investments benefits Boeing's most important strength – our employees – and reflects the real-time impact and economic benefit of the reforms," said Muilenburg. – Dec. 20, 2017 Boeing Company press release
Kraft Heinz Company (Chicago) – $1.3 billion pre-funding of post-retirement benefit plans; $800 million in capital expenditures; $300 million in strategic investments:
“Since the HR-1 Tax Cuts and Jobs Act was signed into law, we have already taken actions and are accelerating key business initiatives. This includes approximately $300 million in strategic investments to build our capabilities, our people skills and our brands; more than $800 million in capital expenditures to improve quality, safety and capacity; as well as $1.3 billion to pre-fund our post-retirement benefit plans. – Feb. 16 Kraft Heinz statement by David Knopf, CFO
First Midwest Bancorp, Inc. (Itasca, Illinois) – Base wage raised to $15 per hour; $1,035 bonuses for 85% of employees; $2 million in additional charitable contributions:
First Midwest Bancorp, Inc. (“First Midwest”) (NASDAQ:FMBI), the holding company of First Midwest Bank, announced today expanded investments in its colleagues and communities. These investments include the following:
- An increase in our minimum pay rate to $15 for hourly employees;
- A special bonus up to $1,035 to nearly 85% of our colleagues; and
- A $2 million contribution to the First Midwest Charitable Foundation.
“As we celebrate 35 years as First Midwest, our continuing investment in our colleagues, communities and business stands at the core of our success. I am therefore very pleased to take these important actions,” said Michael L. Scudder, Chairman and Chief Executive Officer of First Midwest. “The growth of our Company as well as the expected benefits from tax reform position us to reward our colleagues for their commitment and hard work as well as expand our investment in the communities in which we live and work.” -- Jan. 11, 2018 First Midwest Bancorp, inc. press release
Central Bancompany, Inc. (locations in O'Fallon, Millstadt, and Columbia) – Bonuses to 2,500 employees: $1,000 bonuses for full time employees; $500 bonuses for part time employees:
In December 2017, U.S. Congress passed a comprehensive tax reform package to encourage economic growth across the nation. As a result of the federal tax reform, Central Bancompany plans to distribute a special bonus to its more than 2,500 employees residing across four states – Missouri, Kansas, Illinois, and Oklahoma. Full-time employees will receive a $1,000 bonus and part-time employees will receive a $500 bonus.
“The economic development that should ensue as a direct result of the new tax reform legislation will positively affect the more than 66 communities we serve,” said Bryan Cook, Chairman and CEO of Central Bancompany, Inc. “We are excited for the opportunity to reward our dedicated and hard-working employees with this special bonus as a token of our gratitude for all that they do for our customers, businesses, and communities.” – Jan. 5, 2018 Central Bancompany press release
Wintrust Financial Corporation (Rosemont, Illinois) -- base wage raised to $15 per hour:
Town Bank is joining a growing list of Wisconsin and national banks in raising the minimum hourly wage for employees to $15.
Town Bank, a Hartland-based bank owned by Wintrust Financial Corp., of Rosemont, Ill., said Wednesday the decision to increase the pay rate for eligible staff "comes as a result of the recently enacted tax reform legislation and the bank’s continued commitment to its employees."
Wintrust said it expects that more than 600 employees will benefit from the pay raise across its family of more than 150 bank locations, including Town Bank's 19 branches in Wisconsin. -- Jan. 24 2018, Milwaukee Journal Sentinel article excerpt
Discover Financial Services (Riverwoods, Illinois) – Base wage raised to $15.25 per hour; $1,000 bonuses for more than 15,000 non-executive employees; additional investments and charitable donations to be announced:
Discover today announced plans to raise its minimum hourly pay rate to $15.25 for virtually all of its full-time U.S. employees as a result of the recent corporate tax reductions after granting a $1,000 bonus to more than 15,000 non-executive employees earlier this month.
The new minimum rate will take effect later this year and ultimately will impact more than 7,000 employees.
The company plans to make additional investments in its people and will increase corporate responsibility efforts in the communities in which it operates. – Jan. 24, 2018 Discover Financial Services press release
Bank of America (Multiple locations in Illinois) -- Illinois-based employees of Bank of America will receive $1,000 bonuses.
MainSource Financial Group (branch locations in Kankakee, Grant Park, Hoopeston, and Watseka) – Base wage raised to $15 per hour:
MainSource Financial Group (NASDAQ: MSFG) will raise the starting pay and minimum hourly rate to $15 an hour effective immediately for all of its non-exempt, non-commissioned employees. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.
Approximately 1,000 associates are employed throughout the MainSource footprint in Ohio, Indiana, Illinois and Kentucky. The pay increase will affect over 200 employees.
Archie M. Brown, Jr., President and CEO, stated, "The recently passed tax legislation is anticipated to create significant savings for our company. We are pleased to direct a portion of this savings back to many of our employees with a meaningful increase in pay." – Jan. 3, 2018 MainSource Financial Group press release
Note: If you know of other Illinois examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
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Unemployment Reaches Record Lows Thanks to GOP Tax Cuts

The U.S. has reached a 50-year low unemployment rate thanks to the 2017 Tax Cuts and Jobs Act. Over the past two years, the Trump economy has continually outperformed predictions with no signs of stopping.
Since President Trump’s 2016 election, American businesses have created 7 million jobs – 5.1 million more than predicted by the Congressional Budget Office. 500,000 of these new jobs are within the manufacturing industry, a drastic improvement from the 20,000 manufacturing jobs lost the year before Trump’s election. In November of 2019 alone, the economy added 266,000 jobs, far surpassing the expected 187,000.
The unemployment rate reached a 50-year low of 3.5 percent this September, accompanied by the highest employment in U.S. history at almost 160 million. The number of discouraged workers decreased by 128,000 between November of 2018 and 2019.
When President Trump was elected, only 14 states’ unemployment rates were below 4 percent. However, 35 states’ unemployment rates fell below this threshold as of September 2019. 24 states either achieved or matched their record-low unemployment rate at some point under the Trump administration.
From 2017 to 2018, employment rose by over 2.4 million, benefitting all demographics. African American employment increased by 504,000, Asian by 384,000, women by 1.1 million, and teenagers by 52,000. Since TCJA’s passage, unemployment rates for African Americans (5.9 percent in May 2018), Hispanic Americans (4.3 percent in February 2019), and Asian Americans (2.1 percent in June 2019) have all achieved their lowest rates in U.S. history. Additionally, female unemployment reached its lowest rate in 71 years.
TCJA and the Trump administration have revitalized the economy with record low unemployment, steady job growth, and rising wages, all for the benefit of American workers.
Photo Credit: Flickr
Sanders Senior Adviser: “Yes, We Will Repeal the Trump Tax Scam”

A senior adviser to Bernie Sanders said in April that if Sanders is elected, he would “repeal the Trump tax scam.”
“I had the privilege of being with Bernie in '10 when he spoke on the Senate floor for 8 hours against extending the Bush tax breaks for the top 1%. When we are in the White House, yes we will repeal the Trump tax scam & create an economy that works for all of us,” Warren Gunnels, a senior adviser to Bernie Sanders tweeted in April.
The promise by the Sanders campaign to repeal the tax cuts is a promise to raise taxes. If the tax cuts were repealed:
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A family of four earning the median income of $73,000 would see a $2,000 tax increase.
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A single parent (with one child) making $41,000 would see a $1,300 tax increase.
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Millions of low and middle-income households would be stuck paying the Obamacare individual mandate tax.
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Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
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Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.
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The USA would have the highest corporate income tax rate in the developed world.
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Taxes would rise in every state and every congressional district.
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The Death Tax would ensnare more families and businesses.
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The AMT would snap back to hit millions of households.
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Millions of households would see their child tax credit cut in half.
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Millions of households would see their standard deduction cut in half, adding to their tax complexity as they are forced to itemize their deductions and deal with the shoebox full of receipts on top of the refrigerator.
In Vermont, where Sanders serves as a U.S. Senator, households making the state average income of $57,513, received a tax cut of around $1,472.48 according to a Tax Foundation report.
Even left-leaning and establishment media outlets confirm the good news arising from the Tax Cuts and Jobs Act:
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The New York Times flatly stated: "Most people got a tax cut."
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The Washington Post stated: “Most Americans received a tax cut.”
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CNN's Jake Tapper did his own fact check and concluded: "The facts are, most Americans got a tax cut."
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CNN's Jake Tapper also stated: "In fact, estimates from both sides of the political spectrum show that the majority of people in the United States of America did receive a tax cut."
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FactCheck.org stated: "Most people got some kind of tax cut in 2018 as a result of the law."
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FactCheck.org also stated: "The vast majority (82 percent) of middle-income earners — those with income between about $49,000 and $86,000 — received a tax cut that averaged about $1,050.
If you want to stay up-to-date on their threats to raise taxes, visit www.atr.org/HighTaxDems.
See more:
Bloomberg Endorsed a Carbon Tax
Biden to Sanders and Warren: “Let’s Get Realistic” on Trillion Dollar Spending Plans
Booker: I Would Raise the Capital Gains Tax Rate
List of Buttigieg Tax Hike Proposals
2020 Dems: Warren's Medicare for All Will Raise Middle Class Taxes
Warren: Medicare for All Covers Illegal Immigrants
Elizabeth Warren Contradicts Herself on Taxes, Again
Biden: Imagine if I Told Elizabeth Warren ‘You Should Be In a Socialist Primary’
CNN Catches Warren in a Tax Lie
Bernie Sanders: Warren’s Medicare for All Plan Would Have “Very Negative Impact” on Jobs and Wages
Warren’s “Medicare for All” Repeals Trump Tax Cuts
Biden: Warren is "Making it Up" on How She'll Pay for Medicare For All
Biden: “It’s Impossible to pay for Medicare for All without middle class tax increases”
Biden Slams Medicare for All: “It’s Totally Unrealistic and Can’t be Done”
Warren: Two Million Lost Jobs from Medicare for All “Part of the Cost Issue”
Video Showing Every Time Elizabeth Warren Has Dodged the Middle Class Tax Question
Out of touch Biden calls Trump’s $2,000 middle class tax cut “negligible”
Biden Calls for 28% Corporate Tax Rate
Biden: “Every Single Solitary Person” Will Pay 40% Capital Gains Tax
Warren Dodges the Middle Class Tax Question Again
Buttigieg Says He Will Raise Corporate Tax Rate to 35%
Watch: CNN Analyst Gets Visibly Irritated as Warren Dodges Tax Hike Question
Andrew Yang to Elizabeth Warren: Wealth Tax Would Have “Massive Implementation Problems”
Biden on Warren Dodging Middle Class Tax Question: “This is Ridiculous. Absolutely Ridiculous.”
Buttigieg Grills Warren for Dodging the Middle Class Tax Question
Biden: I Will Raise the Capital Gains Tax to 39.5%
Elizabeth Warren Can’t Stop Dodging the Middle Class Tax Question
VIDEO: 17 Times Elizabeth Warren Has Dodged the Middle Class Tax Question
VIDEO: Warren Keeps Dodging the Middle Class Tax Question
Biden: “I’m Gonna Double the Capital Gains Rate to 40%”
Tax Hike Bernie Says He’ll Tax All Income Over $29K
Video: Warren Dodges Middle Class Tax Question Again
Biden Calls for Full Repeal of Trump Tax Cuts
Biden Attacks Warren: "She's Going to Raise People's Taxes”
Video: Media Fed Up with Elizabeth Warren Tax Dodge
Biden: End "Trump's Tax Cut for The Top Tenth of One Percent"
Booker: “My plan would reverse those toxic Trump tax cuts”
Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question
Video: Warren Dodges MSNBC’s Middle Class Tax Questions
Elizabeth Warren is Still Dodging the Middle Class Tax Question
Video: 2020 Democrats Promise Higher Taxes
Biden Caught Lying about GOP Tax Cuts
Bill De Blasio: “As President, I Would Issue a Robot Tax”
Kamala Harris Calls for Ban on Plastic Straws
Elizabeth Warren's Climate Plan Calls For "Reversing" GOP Tax Cuts
Sanders: We’re Going to “Absolutely” Raise the Corporate Tax Rate
Elizabeth Warren on Corporate Tax Cuts: “I really want to see them rolled back.”
Bill de Blasio Calls for Corporate Tax Rate Hike
Amy Klobuchar: Raise the Corporate Tax Rate to 25%
Biden on capital gains tax: “We should raise the tax back to 39.6 percent”
Kamala Harris Threatens to Repeal GOP Tax Cuts 3 Times in August
Joe Biden: “I’m going to eliminate most all” of GOP Tax Cuts
Cory Booker Calls for Repeal of "Toxic" GOP Tax Cuts
Marianne Williamson Joins Dems Calling for TCJA Repeal
Kamala Admits Her Plan Would End Employer Insurance
“Medicare for All” is a Middle Class Tax Increase, Say Dems
Elizabeth Warren Can’t Dodge the Middle Class Tax Question Forever
Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes
Supposed “Moderate” Democrat John Delaney Wants to Impose Carbon Tax on the American People
Klobuchar Suggests Capital Gains Tax Hike and “Doing Something” About TCJA
VIDEO: 2020 Democrats Will Raise Your Taxes
Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by GOP Tax Cuts
Julian Castro: “We’re going to have to raise taxes.”
Biden and Harris: Raise the Corporate Tax Rate
Biden tweet: Ignore the fact I’ve already called for middle class tax hikes
Kamala Harris: “I Will Reverse” Trump’s Tax Cuts
Kamala Harris Calls for Repeal of Tax Cuts Four Times in Three Minutes
Julian Castro Caught Lying about GOP Tax Cuts
NYT: Bidencare Will be Funded by “rolling back” GOP tax cuts
Kamala Harris: I Will Repeal “That Tax Bill”
Cory Booker: “I do support” Imposing Carbon Tax on Americans
Harris: “We are Going to Repeal That Tax Bill”
Biden: I Will Raise Corporate Tax Rate to 28%
Kamala Harris Continues to Lie about Tax Cuts
Jay Inslee: “Repeal the Trump Tax Cuts”
Biden Running Ads to “Repeal Trump’s Tax Cuts.”
VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts
Here’s what happens if Dems repeal tax cuts
VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA
Kamala Harris: When I Enter Office "I Will Repeal" the TCJA
Biden: “First thing I would do as President is Eliminate the President’s Tax Cut.”
Bernie Sanders claims people would be “delighted to pay more in taxes”
Biden: Tax Cuts Will be “Gone” If I’m Elected
Kamala Harris: I Will Repeal Tax Cuts “on day one”
Biden again says capital gains tax is “Much too Low”
Biden: Capital gains tax “much too low”
VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts
Biden: “First thing I’d do is repeal those Trump tax cuts.”
Joe Biden broke his middle class tax pledge
“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses
Kamala Harris Vows Repeal of Tax Cuts “on Day One”
Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”
Photo Credit: Shelly Prevost/Flickr
Trump Economy Adds 266K Jobs In November

President Donald Trump’s economy added 266,000 jobs in November, defying market projections that businesses would create 185,000 jobs last month. November’s explosive job creation marks 7 million jobs added since Trump was elected.
In 33 of the past 36 months since Trump was elected, businesses have added more than 100,000 jobs a month.
Today’s Bureau of Labor Statistics report shows that goods-producing employment (mining and logging, construction, manufacturing) saw an increase of 48,000 jobs in November, and service jobs saw an increase of 206,000. Since Trump was elected, the construction industry has created 713,000 jobs.
Wages also continue to climb. Over the past year, average hourly earnings for American workers have increased by 3.1 percent. October is the 16th consecutive month that wages have grown above 3 percent –– prior to this streak, wages had not reached 3 percent growth during the previous 10 years. Workers are also experiencing higher wage growth than managers.
The unemployment rate has decreased to 3.5 percent, marking a 50-year low. November was the 21st consecutive month that the unemployment rate has been at or below 4 percent, the longest streak in almost 50 years.
The strong November jobs numbers are continued evidence that the Republican Tax Cuts and Jobs Act is continuing to revitalize the economy nearly two years after Trump signed it into law.
Businesses have responded to the tax cuts by giving employees higher wages and creating new employee benefit programs, while utility companies are passing tax savings onto consumers in the form of lower rates.
Families are also seeing direct tax reduction – a family of four with annual income of $73,000 (median family income) will see a tax cut of more than $2,058, a 58 percent reduction in federal taxes. In net, households are paying an average of 24.9 percent in lower taxes according to a report released by H&R Block based on their clients’ tax returns.
Just in time for Christmas, tax cuts and deregulation championed by the Trump Administration is continuing to deliver a prosperous economy for all Americans.
Photo Credit: Gage Skidmore
List of Tax Reform Good News

ATR has collected 850 examples of new hires, pay raises, benefit increases, facility expansions, bonuses, and utility rate reductions where the GOP-enacted Tax Cuts & Jobs Act was cited as a key factor:
Full A-Z national compilation (PDF)
State lists:
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware DC Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming
Specialized sub-lists:
List of utility companies lowering rates as a direct result of TCJA's corporate income tax cut
TCJA helps companies provide new employee and family benefits
(Pictured at top: The Tax Cuts & Jobs Act helped Rod’s Harvest Foods in St. Ignatius, Montana raise employee wages and bonuses)
More from Americans for Tax Reform
Trump Admin Should Repeal FIRPTA To Continue Tax And Regulatory Relief

The Trump Administration’s tax reform and regulatory reform has cut back on unneeded red tape and complexity, grown the economy, and promoted innovation and investment. The Trump Administration has further sought to reduce Americans’ tax burdens by discouraging tax hikes and instead promoting private investment in infrastructure like roads and bridges.
The Administration can build on this progress by promoting foreign investment in the U.S. and rolling back the burdensome Foreign Investment in Real Property Act (FIRPTA). In the short term, this means withdrawing Section Two of IRS Notice 2007-55.
When Congress passed FIRPTA in 1980 there were Cold War-era driven concerns that foreign investors could purchase real estate that was culturally or strategically significant to the U.S. Today, these concerns have faded, but this outdated law is still needlessly restricting foreign investment into American real estate and infrastructure. In addition, there are other laws, including last year’s Foreign Investment Risk Review Modernization Act, that safeguard against national security risks of foreign investment in U.S. assets.
FIRPTA results in higher taxes on foreign investment in real estate and infrastructure than on any other asset class such as stocks and bonds. FIRPTA imposes extra U.S. tax on the gain realized by a foreign investor on the deposition of an “interest” in the property. FIRPTA punishes foreign investments in many types of real property, from multifamily housing, to commercial buildings, to various types of infrastructure.
In 2007 the IRS worsened FIRPTA’s impact with the publication of Notice 2007-55, a non-regulatory guidance document that broke with 30 years of precedent. Prior to the IRS Notice 2007-55, liquidating distributions received by a foreign shareholder of a real estate investment trust (REIT) were treated as sale of stock. Section Two of Notice 2007-55 expanded FIRPTA by stating that these distributions should be treated as capital gains distributions subject to FIRPTA tax penalties. Because of the IRS notice, the FIRPTA penalty hits not only foreign investments in real property, but also foreign investments in companies that merely own and manage real property.
This unilateral expansion of the FIRPTA penalty is problematic and should be fixed.
The IRS notice (and FIRPTA in general) picks winners and losers. It subjects foreign investment in real property to a higher tax burden than investment in any other asset class.
A foreign taxpayer investing in a U.S. REIT will be subject to the FIRPTA tax penalty, but that same taxpayer would not be subject to U.S. tax from receiving a liquidating distribution from any other type of corporation.
The IRS notice has also restricted foreign investment in U.S. real estate and infrastructure. The U.S. is a top pick for foreign investors yet foreign investment in real estate is an anemic three percent of all foreign direct investment (FDI) in 2018. Withdrawing the notice should be step one toward correcting this problem.
The benefits of FIRPTA reform are not merely theoretical. When Congress made minor changes to FIRPTA that eased tax burdens for some foreign investors in 2015, billions of dollars were injected into the U.S. real estate market nationwide.
The potential gains are significant – A 2017 study by the Rosen Group found that full FIRPTA repeal would increase investment into the U.S. by between $65 billion and $125 billion creating284,000 to 147,000 new jobs.
In the long term, Congress can unlock these economic gains by passing H.R. 2210, the “Invest in America Act.” This bipartisan legislation, which will fully repeal FIRPTA, was introduced by House Ways and Means Committee members John Larson (D-CT) and Kenny Marchant (R-TX).
However, the Trump Administration need not wait for Congress to act to bring more badly-needed FDI dollars to the U.S. Aligning with its own priorities to reduce taxpayer and regulatory burdens, the Administration can act now to increase investment in the U.S., grow U.S. jobs, and raise Americans’ wages by pulling Notice 2007-55 and offering relief from FIRPTA double taxation.
Photo Credit: Mike Cohen
Thanks to GOP Tax Cuts, Craft Beverage Producers are Hiring and Expanding
Thanks to GOP tax cuts, craft beverage producers are hiring new employees, purchasing new equipment, and expanding production
Thanks to the Tax Cuts & Jobs Act enacted by congressional Republicans and President Trump, local breweries, distilleries, and wineries across America are hiring more employees, purchasing new equipment, and expanding production. This means local craft beverage entrepreneurs are able to grow their business and provide a greater variety of beverages and fun community gathering places.
The GOP tax cuts enacted the Craft Beverage Modernization and Tax Reform Act, which provided federal tax relief for local craft breweries, wineries, and distilleries. And the tax cuts included full business expensing, which allows companies to deduct the full cost of new equipment from their taxes the same year they purchase it.
Below are several examples of good news from breweries, wineries, and distilleries. (If you know of any additions to this list, please send to jkartch@atr.org)
Biscayne Bay Craft Brewery (Miami, Florida) – Hiring two new employees and purchasing new equipment:
Consider the story of Jose Mallea, owner of Biscayne Bay Craft Brewery, who participated in President Trump's event. The tax cuts have allowed him to purchase $100,000 more in equipment and hire two new employees. – April 29, 2018 Tallahassee Democrat article excerpt
Cedar Springs Brewing Company (Cedar Springs, Michigan) -- Used savings from the Tax Cuts and Jobs Act to hire new employees and purchase new equipment:
Across the nation, craft beer makers are urging Congress to pass the Craft Beverage Modernization and Tax Reform Act.
The current legislation gives small brewers a 50% reduction of their federal excise tax, but it expires at the end of 2019.
"It was relief for a lot of us," Cedar Springs Brewing Company's Dave Ringler said. "I can speak personally, that gave us a little cash flow ease. It was something we used to hire employees, buy new equipment. It definitely helped out."
The new act would make that tax cut permanent.
"We’re all little guys," Ringler added. "Almost all of us are entrepreneurs that are sole proprietors or small business people, so it really does help Main Street."
"Small breweries really are the lifeblood of small communities," Ringler added. "It's been a huge part of revitalization in communities not only here in Michigan but nationally." -- Oct. 10, 2019 Fox 17 Article
Clayton Distillery (Clayton, New York) - facility upgrades:
Mr. Aubertine, who co-owns the Clayton Distillery, pays about $40,500 in excise taxes annually for the 3,000 gallons of spirits he produces at $13.50 per proof gallon. The tax reform, however, will reduce his expense to about $8,100 when it takes effect in 2018, which encouraged him to install upgrades to his facility at 40164 Route 12.
“We’re basically investing back into the business,” he said. “The tax plan — it also lets us write off some of the supplies a little bit differently.” - December 28, 2018, Watertown Daily Times article excerpt
Dripping Springs Distilling (Dripping Springs, Texas) -- The owner says he was able to use savings from the Tax Cuts and Jobs Act to hire new employees, invest in new equipment, and break ground on a new visitors center:
These tax savings have enabled Texas craft distillers to expand our businesses by hiring more employees, investing in new equipment and purchasing more from Texas agricultural suppliers. At Dripping Springs Distilling, which I co-founded, in addition to creating new jobs, we were able to break ground on a new visitors center, where we hosted 15,000 visitors last year.
Gary Kelleher is co-founder of Dripping Springs Distilling. -- Nov. 29, 2019 My San Antonio
Dry Fly Distilling (Spokane, Washington) - Hiring new employees, plant expansion, and facility investments:
The reform that went into effect January 1, 2018 is helping Dry Fly Distilling save some money that the company is using to pump right back into a planned expansion, special projects, and other additions.
The Craft Beverage Modernization and Tax Reform Act reduced the federal excise tax on distilled spirits producers. Dry Fly Distilling owner Don Poffenroth said the change has saved Dry Fly about $1.50 on every bottle, which cuts down production costs.
"Now that $1.50 really is allowing us to add additional personnel, to put more money back into our plant and then we are embarking on a fairly aggressive expansion plan as well. So, we are going to build a new facility. So, we are 100% reinvesting kind of everything we get out of that," Poffenroth said.
That saved money also can go toward special projects, like the Dry Fly Single Malt Whiskey, which has been aged for the last ten years. - February 16, 2018, KXLY article excerpt
Flying Dog Brewery (Frederick, Maryland) - purchasing new equipment:
It's a similar story for Maryland's Flying Dog Brewery. CEO Jim Caruso (who is a donor to the Reason Foundation, which publishes this website) says the tax cuts might not look like much at the consumer level, but they free up a lot of money for businesses to reinvest in their operations.
"When you look at this reduction in taxes. That translates to a penny per bottle. It's a small cost per bottle times the number of cases, that adds up pretty quickly," says Caruso, saying his company saved some $300,000 thanks to the tax cuts, which he says has gone toward buying new capital equipment. - November 21, 2018 article excerpt from Reason Hit & Run Blog excerpt
Ghostface Brewing (Mooresville, North Carolina) – Hiring new employees, purchasing more equipment, and increasing distribution:
Mike Cuddy, owner of Ghostface Brewing in Mooresville, N.C., said his company also used the tax break to buy more equipment, hire more people and focus on distribution to local grocery stores and restaurants. – April 26, 2018, MarketWatch article excerpt
Gray Skies Distillery (Grand Rapids, Michigan) -- Expanding production:
Gray Skies has been in business for around two and a half years and has recently been able to expand production because of one specific aspect of the GOP tax law. It's called the Craft Beverage Modernization and Tax Reform Act, which was an amendment to the big picture bill Trump signed into law in December.
There's a lot to the law, but here's why it matters to Gray Skies and other distilleries like it: excise taxes are much, much lower for them now. 80% lower to be exact.
"The instant a drop of alcohol is produced, tax is owed on that," said Steve Vander Pol, who co-founded Gray Skies and serves as the head distiller.
The law reduces excise taxes on producers from $13.50 per proof gallon for the first 100,000 gallons produced to $2.70 per proof gallon.
"We're talking thousands of dollars every quarter that we're saving," Vander Pol said, "and obviously for someone on this sized scale to write a check that's reduced by 80% is pivotal. It's been huge for us." - June 4, 2018, WZZM article excerpt
Jordan Winery (Healdsburg, California) -- $1,000 bonuses for each of its 85 employees:
In response to the tax cut bill that passed this week, John Jordan, owner of Jordan Winery in Sonoma County, California, announces that he will give all eligible winery employees a $1,000 bonus as a result of the passage of the 2017 tax reform bill. – Dec. 22, 2017 Jordan Winery press release
Keg Creek Brewing (Glenwood, Iowa) - Expanding operations, purchasing new equipment:
“A small brewery in Glenwood, Iowa, in Mills County called Keg Creek is expanding their operations and investing in new equipment as they grow.” - June 11, 2018, Rep. David Young statement on U.S. House Floor
Lazy Magnolia Brewery (Kiln, Mississippi) - provide employee benefits, give employee promotions, and complete facility upgrades:
Known for its Southern Pecan Nut Brown Ale, Lazy Magnolia opened in 2005 and is the oldest packaging brewery in Mississippi. With the money saved from the tax cut, Henderson said the brewery has been able to improve benefits for employees, convert two part-time jobs to full time and improve the brewery's taproom. - June 2, 2018 CNN article excerpt
Lewis & Clark Brewing Co (Helena, Montana) - hiring new employees:
At Lewis and Clark Brewing Co., Pigman expects to save $25,000 this year because of the provision in the tax reform that he said brewers like him have been working to get for three years.
The money is going to hiring — an employee was brought on last week and Pigman is looking for two more full-time positions each in production and sales. - May 6, 2018 Helena Independent Record article excerpt
Mother Earth Brewing Company (Nampa, Idaho) -- The Tax Cuts and Jobs Act allowed the brewery to almost double their production, buy new equipment, and hire new employees:
Even the largest Idaho craft brewery has a fraction of that productivity. Mother Earth's Idaho brewery (the company has a second location in California) produced 10,000 barrels in 2018, the first year of the tax cut. This year, the brewery expects to produce 18,000 barrels, according to owner Daniel Love.
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Mother Earth hired two new employees and bought two Unitanks, stainless steel fermenters, with the tax savings. -- Oct. 19, 2019 Idaho Press Article
Ole Smoky Distillery (Gatlinburg, Tennessee) - bonuses for non-senior management employees, purchasing new equipment, opening a new distillery, hiring new employees:
“We are very supportive of the new tax programs, as they are providing an opportunity for us to further invest in our team and business activities,” said Robert Hall, CEO of Ole Smoky Distillery. “We greatly value all our very talented employees, and are always striving to do what is best for them and the surrounding community. We will be using some of our tax savings to reward many of these hardworking individuals, as well as increasing our investment in new business endeavors. We couldn’t think of a better day to make this announcement.”
The moonshine distillery will be using some of the tax cut savings to provide bonuses for all employees below senior management, proportional to their tenure with the company. Additionally, because of its rapid business growth, the company has created many more jobs, particularly in East Tennessee, and plans to continue that growth by investing further in its Sevier County distilleries and expanding its footprint to Nashville, where it plans to open a 4th distillery and retail/entertainment location in the fall. New equipment has already been installed at the company’s largest distillery, the Holler, in order to expand production capacity. More equipment is on order for its Pittman Center bottling facility to continue the capacity expansion of that facility. - April 17, 2018, Ole Smoky Distillery press release excerpt
Port City Brewery (Alexandria, Virginia) -- Because of the Tax Cuts and Jobs Act, the company was able to pay employees more, offer better benefits, and buy more equipment:
At Port City, which opened in 2011 and is the oldest packaging brewery in the Washington, D.C.-area, the lower rate amounted to annual savings of roughly $50,000, Butcher said. With that money, Port City was able to pay its employees more, provide them with better benefits, including the employer match for retirement, and add more tanks and automation, he said.
"All those things have become much easier with this lower tax rate," Butcher said. -- Sept. 26, 2019 Washington Examiner
Rebecca Creek Distillery (San Antonio, Texas) -- The company was able to use savings from the Tax Cuts and Jobs Act to hire more people and expand:
Rebecca Creek Distillery LLC’s Steve Ison said that if Congress fails to extend that tax relief, it will severely strain the craft beverage industry and hamper his company’s ability to continue expanding.
“It saved us a million bucks,” Ison said. “With that money, we were able to expand and hire more people.”
Backers of the act note that it reduces taxes on distilled spirits, for example, by more than $10 for the first 100,000 gallons produced or imported annually. There is less of a reduction for additional gallons produced. -- Dec. 3, 2019 San Antonio Business Journal
Right Proper Brewing Company (Washington, D.C.) -- The Tax Cuts and Jobs Act allowed the company to keep beer prices low:
At Right Proper Brewing Company in Washington, D.C., the tax cut saved the company more than $13,000. The brewery produces roughly 600 barrels annually at its restaurant and another 3,200 barrels at its production house in Northeast D.C., which opened in December 2015, co-owner Leah Cheston said.
With the rate of $3.50 per barrel, the reduced federal excise taxes have allowed Cheston to keep prices at Right Proper's brewpub low, especially when compared with other restaurants in the area.
"It's prevented us from having to raise prices because everything increases constantly," she said. "To get that break is great. As a small business, every little bit counts." -- Sept. 26, 2019 Washington Examiner
Shortway Brewing Co. (Newport, Connecticut) -- Increasing wages and hiring new employees:
Mr. Shortway said the new tax plan, along with the Craft Beverage Modernization and Tax Reform Act, also passed last year, have already helped the brewery save money. The craft beverage act greatly reduced excise taxes on small-scale brewers and the tax plan has additional provisions designed to help small businesses. - May 11, 2018, Carteret County News-Times article excerpt
Southern Grace Distilleries (Mount Pleasant, North Carolina) – Hiring new employees, expanding visitor center, and investing in business expansion:
"The reduction in the federal excise tax has allowed us to hire additional staff, increase our whiskey production, expand our visitor center and invest in marketing which is critical to the growth of our Conviction Small Batch Bourbon brand," said Southern Grace Distilleries CEO Leanne Powell. "At the end of last year our bourbon was available in NC, SC and Washington, DC. Today you can also find Conviction Small Batch Bourbon in Louisiana, Illinois, Oklahoma and Connecticut. We couldn't be happier." – April 26, 2018 Southern Grace Distilleries press release excerpt
St. Augustine Distillery (St. Augustine, Florida) - Hiring new employees, purchasing new equipment and inventory:
“As a young business facing more than their share of regulatory challenges, the St. Augustine Distillery was relieved, to say the least, when the Tax Cuts & Jobs Act was signed into law. The distillery announced shortly after the bill’s passage that they would be using their savings to make further investments in their employees and increase their equipment and inventory, creating new local jobs and hiring additional staff to manufacture, market, and sell their products.” - May 17, 2018, Rep. John Rutherford statement on U.S. House Floor
Stormcloud Brewing Company (Frankfort, Michigan) -- Savings from the Tax Cuts and Jobs Act allowed the company to buy new equipment and hire more employees:
“When the initial tax credit passed, it was an immediate savings for us and we were at a time when our business was continuing to grow, and so we took that opportunity to look at how we could invest in additional equipment, which brought on new employees as well,” said Stormcloud Co-Owner Rick Schmitt.
…
“We were able to add tank space, which allowed us to increase our distribution footprint, so today we’re in 35 counties in Michigan and likely we wouldn’t be there today if it weren’t for this tax credit,” said Schmitt.-- Oct. 7, 2019 9 & 10 News
Sugarlands Distilling Company (Gatlinburg, Tennessee) – The Craft Beverage Modernization Act – a key part of the Tax Cuts and Jobs Act – helped Sugarlands Distilling Company plan a new 42,000 square foot distillery and barrel house. Sugarland is also investing $2 million in new equipment:
“We’re a small distillery, and this is a huge risk, one that we couldn’t have taken without the Craft Beverage Modernization Act. That’s given us the capital and the confidence that we needed to make a big bet on the future of our company. This month, we are breaking ground on a 42,000 square foot distillery and barrel house. We’re purchasing over $2 million worth of equipment, including one of the biggest pot stills Vendome has ever made. Each year, we’ll be buying almost $3 million pounds of corn and rye, and thousands of handcrafted American Oak barrels to produce our Tennessee whiskey.” -- Ned Vickers, President and CEO of Sugarlands Distilling Company
Sugarlands has a wonderful new video telling the story of the expansion. Here is an excerpt from the video:
“Our business is our passion. But just like every other business, we have our share of challenges. The Craft Beverage Modernization Act has allowed us to plan expansion, buy new equipment, create more jobs, and introduce ourselves to people in new neighborhoods. It means we can continue making an impact felt by all of our families, partners, and friends, for years to come.”
Sugarlands Distilling Company is a maker of many fine moonshinesavailable online or in person in Gatlinburg.
Telaya Winery (Boise, Idaho) -- The winery hired more employees and improved its marketing because of the Tax Cuts and Jobs Act.
At Boise’s Telaya Winery, grapes are sorted by hand onto a conveyor belt heading to the destemmer. Owner Earl Sullivan said the big bunches of fruit need to be pulled apart or they can explode in the machine.
“It’s a product of the freeze we just had a couple days ago,” he said, “We’re just having to work a little bit harder to make sure the fruit is as clean as we want it.”
Sullivan is also the chair of the Idaho Wine Commission Board. Today’s grapes are processed and barreled for aging, but won’t be bottled and taxed as wine for two years. That delay can make tax law changes difficult to prepare for.
“We spend several hundred thousand dollars per year on production for two years down the road, so the most likely impact in the short term would be a reduction in production,” Sullivan said. He also noted the winery has beefed up its hiring and marketing in the last two years while the tax rates have been lower. -- Oct. 22, 2019 Boise State Public Radio
The Mitten Brewing Company (Grand Rapids, Michigan) -- Because of the Tax Cuts and Jobs Act, the Michigan Brewery was able to produce new beer, preform new research, hire new employees, give employees pay raises and bonuses:
"It literally put money back into our pockets that we were spending before. We had been producing a bunch of new beers that we have been able to research and develop, and we’ve retained key employees, by giving them bonuses, raises, bringing in new employees," said Max Trierweiler, co-owner of The Mitten Brewing Company.” -- Oct. 7, 2019 WZZM13 Article
Wood Boat Brewery (Clayton, New York) - Hiring new employees, expanding production:
Similarly, small producers of beer and liquor seem to be well positioned to take advantage of tax savings given the large cut to the federal excise charge across the industry. Mix in a lower overall tax rate and the savings start to add up. Some are using the proceeds to hire and reinvest. For example, in Watertown, NY, the Wood Boat Brewery started posting ads for full-time help after the law passed.
Owner Michael J. Hazelwood told the Watertown Daily Times in December that he’d likely expand production and hire staff with savings realized from the reduced excise tax. Now, like the Klavers of SALUS, it appears he has. - April 18, 2018, Capital One blog post excerpt
If you know of any additions to this list, please send to jkartch@atr.org
For the full national list of pay raises, bonuses, 401(k) match increases, expansions, and utility rate reductions due to the Republican tax cuts, visit www.atr.org/list
Photo Credit: Paul Joseph
Washington D.C. Examples of Tax Reform Good News

Thanks to the Tax Cuts and Jobs Act passed by the Republican congress and signed by President Donald Trump, 90 percent of wage earners have higher take-home pay.
Below are several examples of tax reform good news in Washington, D.C. (Additions to this list can be sent to jkartch@atr.org)
Right Proper Brewing Company (Washington, D.C.) -- The Tax Cuts and Jobs Act allowed the company to keep beer prices low:
At Right Proper Brewing Company in Washington, D.C., the tax cut saved the company more than $13,000. The brewery produces roughly 600 barrels annually at its restaurant and another 3,200 barrels at its production house in Northeast D.C., which opened in December 2015, co-owner Leah Cheston said.
With the rate of $3.50 per barrel, the reduced federal excise taxes have allowed Cheston to keep prices at Right Proper's brewpub low, especially when compared with other restaurants in the area.
"It's prevented us from having to raise prices because everything increases constantly," she said. "To get that break is great. As a small business, every little bit counts." -- Sept. 26, 2019 Washington Examiner
Pepco (Washington, DC) – The utility will pass along tax savings to customers:
Pepco today announced they will file with the Public Service Commission of the District of Columbia in early February, outlining plans to provide annual tax savings to more than 296,000 electric customers in the District of Columbia. If approved, Pepco would plan to begin providing a credit lowering customer bills starting in the first quarter of 2018.
The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017, and became effective on Jan. 1, 2018. The decrease in the Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal income tax Pepco will have to pay.
“The tax law will result in lower bills for our customers and lower taxes for Pepco,” said Dave Velazquez, President and CEO, Pepco Holdings, which includes Pepco. – Jan. 5 2018, Pepco press release
Washington Gas Light (Washington, DC) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Walmart - Washington D.C. employees at 3 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
Starbucks Coffee Company (91 locations in Washington, D.C.) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plant and support center employee stock grants, totaling more than $100 million in stock grants. Nationally, 8,000 new retail jobs and 500 new manufacturing jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
T.J. Maxx – (Four locations in Washington, D.C.) – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
AT&T - $1,000 bonus to 222 D.C. employees; Nationwide, $1 billion increase in capital expenditures.
Apple (One store location in Washington, D.C.) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
Lowe's -- 150+ employees at one store in Washington, D.C. -- Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance
Ryder (One location in Washington, D.C.) - Tax reform bonuses for employees.
Best Buy -- Two stores in Washington, D.C. - $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.
Bank of America (Three locations in Washington, D.C.) - $1,000 bonuses.
Home Depot - One location in Washington, D.C., bonuses for all employees, up to $1,000.
Dollar Tree, Inc. (Multiple locations in Washington, D.C.) Nationwide, $100 million investment in raising base wages, enhanced benefits, including maternity leave for qualifying employees and employee training.
Waste Management Inc. (Locations in Washington, D.C.) -- $2,000 bonuses:
In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.
“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.
“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10 2018, Waste Management Inc. press release excerpt
Chipotle Mexican Grill (Multiple locations in Washington, D.C.) - Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
U-Haul (Multiple locations in Washington, D.C.) - $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in Washington, D.C.) – Accelerated and increased compensation; pension plan contributions:
FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. -- Jan. 26 2018, FedEx press release
McDonald’s (25+ locations in Washington, D.C.) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
-
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
- Increased Tuition Investment:
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Wells Fargo (22 locations in Washington D.C.) - Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Washington D.C. examples, please email John Kartch at jkartch@atr.org
The running nationwide list can be found at www.atr.org/list
More from Americans for Tax Reform
ATR Joins Coalition Warning of New Railroad Price Controls

Today, Americans for Tax Reform joined a coalition of free-market organizations warning Congress of potential new government price controls on America’s freight railroads.
In a letter, the coalition emphasized the importance of the upcoming Surface Transportation Board (STB) hearing on railroad revenue adequacy and urged Congress to provide “close oversight of the STB and its remaining authorities.”
Specifically, the signed groups raised concerns regarding the STB’s possible changes to revenue adequacy determinations that may be used to create new heavy-handed railroad regulations. Such changes could allow the government to determine that a railroad is earning excessive revenue and consequently serve as justification for instituting a new price control mechanism to set maximum freight weights. Using revenue adequacy in this manner would run counter to the deregulatory agenda that saved the private railroad industry from the brink of collapse during the 1970s.
The letter's signers point to comments submitted to the STB by authors of a 2015 study produced at the request of Congress. These comments highlighted several concerns with STB’s proposal including:
- Arbitrary calculations: “The proposal would establish rate increase caps based on the relationship of a shipper’s rates to a benchmark calculated using costs derived from the inherently arbitrary Uniform Rail Costing System (URCS) and arbitrary allocations of profits that exceed the cost of capital.”
- Divorced from economic reality: “We are deeply concerned that this approach creates a rate increase constraint that is divorced both from economic reality and from a well-articulated goal that the proposal is designed to achieve.”
- Contrary to stated intent: “This proposal could move STB rate regulation in the direction of public utility regulation rather than the protection of captive shippers.”
To see the full content of the letter, please click here.
Photo Credit: Luke Jones
Washington Examples of Tax Reform Good News

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Washington (Additions to this list can be sent to jkartch@atr.org)
Dry Fly Distilling (Spokane, Washington) - Hiring new employees, plant expansion, and facility investments:
The reform that went into effect January 1, 2018 is helping Dry Fly Distilling save some money that the company is using to pump right back into a planned expansion, special projects, and other additions.
The Craft Beverage Modernization and Tax Reform Act reduced the federal excise tax on distilled spirits producers. Dry Fly Distilling owner Don Poffenroth said the change has saved Dry Fly about $1.50 on every bottle, which cuts down production costs.
"Now that $1.50 really is allowing us to add additional personnel, to put more money back into our plant and then we are embarking on a fairly aggressive expansion plan as well. So, we are going to build a new facility. So, we are 100% reinvesting kind of everything we get out of that," Poffenroth said.
That saved money also can go toward special projects, like the Dry Fly Single Malt Whiskey, which has been aged for the last ten years. - February 16, 2018, KXLY article excerpt
Alaska Air Group (Seattle, Washington) -- $1,000 bonuses for 23,000 employees.
APPS Portamedic (Bellevue, Washington) – employee bonuses:
"Anything from the 20 percent reduction down to 17.5 percent, we have a lot of equipment in our business so we're going to see a tax break there. I was looking at the numbers just based on our simple tax bracket as my wife and I you know it's about a $2,500 benefit just for income tax alone," Oakley said in an interview.
So, [owner Ben] Oakley decided to share the tax break, "Yeah, I sat down with my wife two days ago, I'm like 'if this goes, I want to show people that one, Republicans care about the middle class.' My wife and I are middle class, our staff is middle class. – December 20, 2017 KIRO 7 News report excerpt
Avista Corporation (Spokane, Washington) – the utility will pass federal tax reform savings to customers:
“Avista customers could collectively see a $50 million to $60 million annual benefit from federal tax reform, utility officials said Wednesday.- Feb. 21, 2018 The Spokesman Review article excerpt
First Financial Northwest, Inc. (Renton, Washington) – $1,000 bonuses to all 138 non-executive employees:
First Financial Northwest, Inc. (the “Company”) (NASDAQ:FFNW), the holding company for First Financial Northwest Bank (the “Bank”), today reported that it has given all of its non-executive employees a special $1,000 after-tax bonus, regardless of role or tenure with the Company. The one-time bonus comes in response to the signing of the U.S. Tax Cuts and Jobs Act of 2017 which provides a lower tax rate for companies like First Financial Northwest, Inc. – a portion of the expected tax savings was shared with its approximately 138 non-executive employees.
Joseph W. Kiley III, President and Chief Executive Officer, included a handwritten note with the surprise payments thanking the team for its efforts in 2017 and looking forward to a great 2018. “Our employees drive the success of our Company, delivering unique, innovative solutions to our customers and building long-term banking relationships in our communities,” said Kiley. “We pride ourselves on providing excellent benefits, competitive salaries and the opportunity for participation in the Company's long-term success. The expected tax savings give us an opportunity to invest even more in our team.” – First Financial Northwest Inc. press release
The savings on individual customers’ bills, however, won’t be known until later this year.
Corporate tax rates for the Spokane-based utility dropped from 35 percent to 21 percent effective Jan. 1. Savings from the lower taxes will get passed on to Avista’s utility customers in Washington, Idaho and Oregon, said Mark Thies, senior vice president and chief financial officer.
--
The anticipated $50 million to $60 million in annual savings is the result of the lower federal tax rate and changes to Avista’s deferred tax liability related to depreciation costs. As the result of the depreciation changes, about $442 million will be returned to Avista customers over 35 years, Thies said.” -- Feb. 21, 2018 The Spokesman Review article excerpt
HomeStreet, Inc. (Seattle, Washington) – Base wage increased to $15 per hour:
Today, HomeStreet, Inc. (Nasdaq: HMST), the parent company of HomeStreet Bank (“HomeStreet”) announced that it has raised its company minimum wage to $15 per hour across all 111 retail branches and lending centers in seven states. The increase took effect January 1, 2018. The announcement comes on the heels of the recently signed federal tax reform bill that cut the corporate tax rate from 35 percent to 21 percent.
HomeStreet made the decision to increase its minimum wage in order to share the tax reform benefits with its employees. The change is particularly welcome as the cost of living continues to increase across the country.
“We’re dedicated to the incredible people who work at HomeStreet,” said Mark Mason, president and CEO of HomeStreet Bank. “We’re grateful to be in a position where we’re able to raise our minimum wage and reward our hardworking employees for the great work they do every day. – Jan. 16, 2018 HomeStreet, Inc. press release
Puget Sound Energy Inc. (Bellevue, Washington) – The utility will pass along tax cut savings to customers:
Washington state utility regulators approved electric rate reductions for Puget Sound Energy Inc. totaling $108.5 million for 2018, with two-thirds of that amount reflecting cuts to the company's federal corporate income tax rate.
The federal tax overhaul of 2017 lowered the utility's corporate income tax return from 35% to 21%, and the Washington Utilities and Transportation Commission determined that the financial benefit should be passed on to the company's customers. Those customers will continue to see the benefits of the tax rate reduction in the years ahead as well because the regulators also agreed to cut Puget Sound Energy's, or PSE's, annual base electric rates by $72.9 million. – May 7, 2018, SNL Electric Utility Report
AT&T -- $1,000 bonuses for 3,890 Washington employees. Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“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,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
Inland Northwest Bank (Spokane, Washington) – Base wage raised to $15; $500 bonuses to employees excluding Senior Management Team:
INB, a regional independent community bank, today announced that it plans to share a portion of its anticipated tax savings with its employees as a result of the federal tax reform legislation signed last week.
The new tax reform law will revamp the tax framework and reduce the maximum tax rate for corporations from 35 percent to 21 percent. Historically, INB’s parent company, Northwest Bancorp has paid the maximum tax rate so it expects a tax cut of approximately 14 percent.
At year-end 2017, INB will pay a bonus of $500 to each of its 200 employees, excluding its Senior Management Team. Additionally, it will establish the company’s minimum wage at $15 an hour effective, January 1st, 2018. INB will also adjust other employee wages for those making more than $15 an hour. The total wage adjustment will affect more than one third of their entire workforce.– Dec. 27, 2018 Inland Northwest Bank press release excerpt
Peoples Bank (Bellingham, Washington) – Base wage raised to $15 per hour; 401(k) match increased one point to 8%:
In response to the newly passed tax reform legislation, Peoples Bank (https://www.peoplesbank-wa.com/) today announced new investments in its employees. Specifically, Peoples Bank will raise the minimum wage to $15 for all hourly employees, effective February 1, 2018, and will increase its 401K match one point to eight percent for all eligible employees, effective immediately
“These new employee benefits reflect our ongoing commitment to doing what is right at every step, and our People Come First philosophy which guides the decisions we make in support of our customers and employees,” said Charles LeCocq, Chairman of the Board & Chief Executive Officer. “The new corporate tax reform package is an opportunity to give back to our employees, and recognize their hard work and dedication to providing our customers with a full relationship banking experience and exceptional customer service." – Jan. 8 2018, Peoples Bank press release
Starbucks Coffee Company (Headquarters in Seattle, Washington and 757 store locations in Washington) – $500 stock grants for all Starbucks retail employees, $2,000 stock grants for store managers, and varying plant and support center employee stock grants, totaling more than $100 million in stock grants; 8,000 new retail jobs and 500 new manufacturing jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave:
“Starbucks pays above the minimum wage in all states across the country. In April, all eligible U.S. hourly and salaried partners will receive a second wage increase in addition to the annual increases that they have already received this fiscal year. This will include an investment of approximately $120 million in wage increases that will be allocated based on regional cost of living and laws that vary from state to state.
On April 16, we will provide an additional 2018 stock grant for all eligible full-time, part-time, hourly and salaried U.S. partners across our stores, plants and support centers, who have been active as of Jan. 1, 2018. All Starbucks retail partners will receive at least a $500 grant, store managers will each receive $2000 grant and plant and support center partner (non-retail) grants will vary depending on annualized salary or level. This investment alone is valued at more than $100 million.
A new Partner and Family Sick Time benefit will be available to all eligible U.S. partners, which will allow partners to accrue paid sick time based on hours worked and then use them if they or a family member needs care. When this benefit goes into effect this year, Sick Time will accrue at a rate of one hour for every 30 hours worked, thus a partner working 23 hours a week can expect to accrue approximately five days of sick time benefit over the course of one year.
Starbucks has also reaffirmed their commitment to create more than 8,000 new part-time and full-time retail jobs and an additional 500 manufacturing jobs in its Augusta, Georgia soluble coffee plant.
For store partners, Starbucks has also expanded their parental leave policy to include all non-birth parents with up to 6 weeks of paid leave when welcoming a new child.” —Jan. 24 2018, Starbucks Coffee Company press release excerpt
Washington Federal (Seattle, Washington) – according to a company statement, “all Washington Federal employees in good standing and earning less than $100,000 per year will receive a 5% increase on top of their normal merit increase.”
Washington Federal, Inc. (NASDAQ: WAFD) today announced with the signing of tax reform legislation, the Bank will accelerate strategic investments in its employees, client service capabilities and community development funding. – Dec. 20 2017, Washington Federal press release
Sound Financial Bancorp Inc. (Seattle, Washington) – increasing employee incentive compensation, expanding charitable giving, and implementing a down payment assistance program for first time homebuyers:
“Responding to H.R. 1, the Tax Cuts and Jobs Act, Sound Community Bank is set to implement a series of employee and community benefits in 2018.
At the Annual Employee Meeting on February 3rd, President and CEO Laurie Stewart unveiled a suite of employee and community initiatives. These include enhancing employee incentive compensation, expanding charitable giving and implementing a down payment assistance program for first time homebuyers.
The increase to incentive compensation will allow both back office and front line employees to increase compensation for achieving goals.” – Feb. 9 2018, Sound Financial Bancorp Inc. press release excerpt
Premera Blue Cross (Mountlake Terrace, Washington) -- $1,500 bonuses for 2,600 employees.
Walmart – South Dakota employees at 67 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
Home Depot -- 45 locations in Washington - Bonuses for all hourly employees, up to $1,000.
Lowe's -- 5,000+ employees at thirty-six stores and a distribution in Washington. Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Ryder (Six locations in Washington) – Tax reform bonuses to employees.
Dollar Tree, Inc. (Multiple locations in Washington) - $100 million investment in raising base wages, enhanced benefits including maternity leave for qualifying employees, and employee training.
Best Buy -- Twenty-eight locations in Washington; $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.
Cintas (Multiple locations in Washington) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Taco John’s (Locations in Fort Lewis, Kennewick, Spokane, McChord AFB): All full-time and part-time crew members received a $200 after-tax bonus:
Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).
On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:
- Every restaurant crew member - full-time and part-time - received $200 (after taxes);
- General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
- The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release
Chipotle Mexican Grill (Multiple locations in Washington) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
Comcast (Multiple locations in Washington) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
T.J. Maxx – (19 locations in Washington) – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
U-Haul (Multiple locations in Washington) – $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in Washington) – Accelerated and increased compensation; pension plan contributions:
FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. -- Jan. 26 2018, FedEx press release
Waste Management Inc. (Multiple locations in Washington) -- $2,000 bonuses:
In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.
“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.
“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10 2018, Waste Management Inc. press release excerpt
McDonald’s (320+ locations in Washington) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Wells Fargo (135 locations in Washington) Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Washington examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
More from Americans for Tax Reform
Virginia Examples of Tax Reform Good News
Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Virginia. (Additions to this list can be sent to jkartch@atr.org)
Deckscapes (Catharpin, Virginia) - Employee pay raises, purchased new trucks, started a new bonus structure and employee IRAs:
“With repealing of regulations and renewed optimism, business has grown considerably over the last year and now with this tax cut, gee-whiz, just the other day we went out with a minimum of 7 percent pay raise to our employees, some of them got higher. We changed our bonus structure, we’re starting IRAs for all the employees, and went out and purchased a bunch of trucks.” - April 17, 2018 Tax Talk Roundtable, Gary Desilets, Owner of Deckscapes
Port City Brewery (Alexandria, Virginia) -- Because of the Tax Cuts and Jobs Act, the company was able to pay employees more, offer better benefits, and buy more equipment:
At Port City, which opened in 2011 and is the oldest packaging brewery in the Washington, D.C.-area, the lower rate amounted to annual savings of roughly $50,000, Butcher said. With that money, Port City was able to pay its employees more, provide them with better benefits, including the employer match for retirement, and add more tanks and automation, he said.
"All those things have become much easier with this lower tax rate," Butcher said. -- Sept. 26, 2019 Washington Examiner
Control Automation Technologies Corporation (Providence Forge, Virginia) - Expansion doubling current facility size, hiring new employees, purchasing new equipment:
Control Automation Technologies Corporation (CATC) has announced the expansion of its Virginia Laboratory as it plans to double the size of its existing facilities in New Kent County, VA.The expansion will include offices, laboratories, and a logistics warehouse to accommodate its growing customer base as well as new equipment, services and employees.
With the recent economic boom, expansion was inevitable", said Mike Watson, the company's founder and CEO. Watson also touted regulation and tax reform as key catalysts for its decision to expand now. - August 1, 2018, Control Automation Technologies Corporation press release excerpt
Bay Electric Co., Inc (Newport News, Virginia) – Hiring new employees and purchasing new equipment:
Business owners at the event said the recent tax law has allowed them to increase capital investment, hire more people and give bonuses.
“This year, we are hiring 12 electricians and have added two project managers to our senior team,” John Biagas, president and chief executive of Bay Electric Co., told the audience. “Plus, the new tax law accelerated our plan to invest over $500,000 in new trucks and equipment.” – April 17, 2018 Morning Consult article excerpt
sweetFrog Frozen Yogurt (Richmond, Virginia) - growing exponentially — adding new stores, serving countless new customers.
I can certainly speak for my business, which has never seen better days. In large part due to the federal tax overhaul, sweetFrog Frozen Yogurt is growing exponentially — adding new stores and serving countless new customers.
In 2009, sweetFrog opened its first store in Richmond. Less than a decade later, we now have more than 350 locations worldwide. By the end of the year, we expect to have more than 400 open locations.
During the first quarter of 2018, sweetFrog franchise owners opened new locations in states including Maryland, Tennessee and Virginia, so it’s undeniable that federal tax cuts had a positive effect. –September 21, 2018 – The Viriginia Pilot ( Guest Columnist Patrick Galleher CEO of sweetFrog Frozen Yogurt)
K-VA-T Food Stores (Abingdon, Virginia) - Increased employee wages, expanded employee benefits:
Tax reform enabled K-VA-T Food Stores, the parent company of Food City, to give raises to 25% of its workforce, a total boost to the payroll of $1 million. It also improved its benefits package for employees and can continue some health benefits that had been under stress due to soaring health insurance costs. - April 13, 2018, Augusta Free Press article excerpt
EnerVest (Abingdon, Virginia) - Employee bonuses:
EnerVest, an oil and gas company with a presence in Southwest Virginia and around 95 employees in the Commonwealth, paid more in bonuses at the end of 2017 and provided a larger average pay increase to its employees than it had in prior years. The company attributed part of its decision to the lift provided by tax reform. - April 13, 2018, Augusta Free Press article excerpt
Payne Trucking (Fredericksburg, Virginia) – Bonuses of $750 for employees of at least five years; $500 for employees of at least a year; $250 for employees of at least six months:
A longtime Fredericksburg-area business owner is giving 81 employees a one-time bonus as a result of the Tax Cuts and Jobs Act passed by Congress in December.
“We were so pleased with the tax relief that we got that we had to share it,” said Danny Payne, head of Payne Trucking Co. “There were tremendous savings in tax relief.”
Employees at the company’s locations in Massaponax and Dundalk, Md., who’ve worked for Payne at least six months received an extra $250 in their paycheck Jan. 26. Those who’ve worked there for at least a year got $500 and those who’ve been there at least five years got $750. Senior management and part-timers weren’t eligible. – Feb. 8, 2018 Fredericksburg.com article excerpt
Sports Clips -- Debra Sawyer, franchise owner (Richmond, Virginia) - Expanding operations, hiring new employees:
“I’m a franchisee. I have 20 open locations and I have my 21st location that will open sometime this summer. Earlier this year I already bought out one of my friends in Florida. She wanted to relocate to the Carolinas to be closer to her kids. So I’m very grateful that the new tax law allows us that clear opportunity to write off not only newly acquired assets that are a brand new purchase but also ones that are used when you’re buying an existing business out from someone else…And then after the [tax reform] bill was passed and I was kind of looking at my tax situation another opportunity came to me to go for my 22nd location. I went ahead and took that because I was comfortable with the tax write offs that I could do. That lease is with my attorney right now for review and I’m hoping to get that location open as well which will let me promote one of my assistant managers to manager, and it will also let me hire at least ten more employees.” - April 17, 2018 Tax Talk Roundtable, Debra Sawyer, Sports Clips Franchisee
Dollar Tree, Inc. (Headquarters in Chesapeake, and many retail locations statewide) – $100 million investment in raising base wages and enhanced benefits including maternity leave:
As noted previously, the Company benefited in the fourth quarter and fiscal 2017 with respect to the TCJA. The Company expects to continue to benefit going forward and currently estimates the benefit to be approximately $250 million for fiscal 2018. As a result of the estimated cash benefit, the Company plans to invest approximately $100 million through the following actions:
- Invest in stores with more hours, including training for associates,
- Invest in people with increased average hourly rates,
- Add Family Dollar eligible associates to the Defined Contribution Plan starting in fiscal 2017 and increase contributions in fiscal 2018, and Establish paid maternity leave for eligible associates -- March 7, 2018 Dollar Tree, Inc. press release excerpt
Huntington Ingalls Industries (Newport News, Virginia) -- $500 bonuses:
Workers at Huntington Ingalls Industries will receive a one-time bonus in the company’s response to the federal Tax Reform Act.
A $500 bonus will be given to all employees except for those who work through an incentive plan.
HII is the parent company of Ingalls Shipbuilding, which employs about 11,500 workers and is the largest manufacturing employer in Mississippi.
HII President and CEO Mike Petters announced the news Thursday in a letter provided to the Sun Herald.
Huntington Ingalls also made a significant incremental contribution to its pension fund—adding $200 million—as a way of providing for its employees’ futures. While many pension funds across the nation face insolvency, Huntington Ingalls is well funded.
The bonus one of several contributions the company plans to make, according to Petters’ letter. – Feb. 15, 2018 Sun Herald article and May 8, 2019 National Association of Manufacturers Shop Floor Blog
Stafford Bounce n Play, LLC (Stafford, Virginia) -- $1,000 mid-year bonuses for all employees:
By working to pass tax reform, these representatives helped my wife and me to make positive steps in both our business and in our relationships with our employees. Stafford Bounce n Play strives to be the best we can be, ensuring that our employees feel valued and appreciated day-in and day-out.
Thanks to the tax savings the new plan provided, we were able to do so by distributing a $1,000 mid-year bonus to each of the hardworking people who work for us. This kind of investment in our employees—and in-turn our community—is the kind of action that Virginia and America needs for long-term prosperity. We expect to see growth this year because of our U.S. representatives’ efforts. – Nicholas Bluma, Stafford Bounce n Play, LLC, March 9, 2018 Inside NOVA
Virginia American Water Company (Alexandria, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Aqua Virginia, Inc (Rockville, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Columbia Gas of Virginia (Chester, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Virginia Natural Gas (Virginia Beach, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Roanoke Gas (Roanoke, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Appalachian Natural Gas (Abingdon, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Virginia Electric and Power Company (Richmond, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Nexus Services, Inc. (Verona, Virginia) – 5% raise for all employees; 200 more workers will be hired in 2018:
All Nexus Services, Inc. employees will receive a 5% raise, starting in January 2018, CEO Mike Donovan announced today. Also, Nexus unveiled plans to hire another 200 workers over the course of 2018 – doubling the size of Nexus Services, Inc. workforce nationwide. Many of the new jobs will be created in Virginia's Shenandoah Valley and other jobs will be in San Juan (Puerto Rico), Hackensack (NJ), Ontario (CA) and other sites nationwide.
The 5% boost in pay will come on top of the increased take home pay that workers will enjoy due to lower Federal income tax rates for individuals.
The more than 200 new jobs Nexus plans to create over the next 12 months will each have a "living wage" and provide full benefits including, health, dental, vision, and retirement plans.
A combination of an improved business outlook for 2018 and tax reform by Congress has enabled Nexus Services, Inc. to make these generous changes. – Dec. 21, 2017 Nexus Services Inc. press release
CarMax Inc. (Headquarters in Richmond, and 10 retail locations statewide: Charlottesville, Dulles, Fredericksburg, Harrisonburg, Lynchburg, Newport News, Virginia Beach, Midlothian, Glen Allen) – $250 - $1,500 bonuses:
The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company. – Feb 23. 2018, EPR Retail News article excerpt
RDR, Inc. (Centreville, Virginia) – Bonuses of up to $1,000 for all 125 employees:
RDR, Inc. A professional services firm headquartered in Centreville, Virginia with a Branch office in Southern Pines, North Carolina and individual employees nationwide is announcing that it will be paying bonuses to each of its 125 employees as a result of anticipated 2018 tax savings from the recently passed Tax Cuts and Jobs Act of 2017.
It has been said that all U.S. workers would see financial benefits in February from the tax cuts that passed in December and we are determined to make this true for all our employees right now! – Jan. 19 2018, RDR, Inc. press release excerpts
Great Southern Wood Preserving, Inc. (Wood treatment plant in Rocky Mount, Virginia) -- Significantly increased employee benefits: lower healthcare costs, more paid time off, and scholarships; supply store location in Rocky Mount, Virginia:
Great Southern Wood Preserving, Incorporated, has begun an active and ongoing process to increase employee benefits by reinvesting its tax savings in its people, the company has announced. The company expects full implementation to take place in 2018.
In late 2017, Congress passed and the President signed into law legislation providing significant tax breaks for corporations. Across America, many companies have chosen a variety of options for applying these savings, such as providing one-time bonuses to employees, increasing charitable giving and reinvesting in facilities upgrades.
For its part, Great Southern Wood will make investments on an ongoing basis to lower healthcare costs for eligible employees, allow employees to accrue more paid time off based on length of service, develop scholarships for dependents of employees and enhance other benefits going forward.
“I’m very pleased that every employee across the company will see the results of the change in tax laws,” said Jimmy Rane, Great Southern Wood’s founder, president and CEO. “The success we’ve enjoyed as a company comes from every one of us working hard and doing our part, and I can’t think of a better way to apply our tax savings than by further investing in benefits programs for our employees. We strive to be an employer that draws the best and brightest to our company, and we believe that providing stronger benefits is essential to this continuing effort.”
Great Southern employs almost 1,200 at locations in eleven states. [Texas, Missouri, Arkansas, Georgia, Alabama, Mississippi, Louisiana, Pennsylvania, Virginia, Maryland, Florida] -- March 29, 2018 Great Southern Wood Preserving, Inc. press release
Eberle Communications Group, Inc. (McLean, Virginia) -- Increased 401(k) match from 25% to 50% for all 45 employees.
Bank of the James (Lynchburg, Virginia) - Raised base wage to $15 per hour for employees with more than one year of service.
Capital One (McLean, Virginia) - Base wage raised to $15 per hour. The news was announced to associate on Tuesday January 9, 2018.
First Sentinel Bank (Richlands, Virginia) – $750 cash tax reform bonus:
A tax reform bill signed by Pres. Donald Trump in December 2017 has resulted in a local company giving employees a one-time bonus.
Called a Tax Cut Bonus, First Sentinel Bank, based in Richlands, Va., is sharing its savings from tax reform with employees.
The board of directors of First Region Bancshares and its subsidiary, First Sentinel Bank, made the announcement Friday that “all employees of the bank will receive a one-time cash bonus of $750 each in recognition of their continued hard work, dedication, and contributions to the ongoing success of the bank.” – March 26, 2018 Bluefield Daily Telegraph article excerpt
F&M Bank (Timberville, Virginia) – Tax reform bonuses of up to $1,100:
Employees of F&M Bank were surprised on Tuesday to learn they would receive a bonus, which the institution attributes to additional earnings expected as a result of the GOP tax plan.
"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President Neil Hayslett. "Rather than just banking all that, so to speak, we wanted to share it with the employees."
The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.
Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750. – Feb. 20, 2018 WHSV 3 article excerpt
First Bank and Trust Company (Abingdon, Virginia) -- Base wage raised to $15 per hour.
Information First, Inc. (Manassas, Virginia) $500 cash bonus for all 15 employees.
Altria Group Inc. (Richmond, Virginia) – $3,000 bonus to approximately 7,900 non-executive level employees, a total of $24 million in bonuses; increased charitable contributions:
Altria Group Inc., one of the Richmond area’s largest private employers, says it is giving all of its non-executive employees a one-time $3,000 bonus, thanks to the corporate tax cut passed by Congress in December.
The Henrico County-based parent company of cigarette maker Philip Morris USA said it also plans to set aside $35 million over three years for philanthropic programs in the communities where it has operations, focusing particularly on nonprofit programs in youth development and workforce preparedness. The money is in addition to the roughly $55 million a year that Altria typically donates to philanthropy, a company spokeswoman said.
The bonus to employees is expected to be paid out this month and will amount to a total of $24 million for the company’s approximately 7,900 non-executive employees.
About 3,600 of those employees are in the Richmond area, where the company has a cigarette factory in South Richmond, its headquarters in Henrico, a research center in downtown Richmond and other operations.
“Our employees drive our success,” said Marty J. Barrington, the company’s chairman and CEO, in a statement. “This bonus is one way we say thank you for everything they do to make Altria a business leader and a leader in our communities.”
Altria is not the only company that has announced one-time bonuses since the tax reform bill was passed in late December. Others include Walmart, Comcast, AT&T, Walt Disney Co., Starbucks, American Airlines and Bank of America, with bonuses mostly of $1,000.
Altria announced the bonus to its employees Thursday afternoon, after the company reported its fourth-quarter and full-year earnings for 2017.” – Feb. 1, 2018 Richmond Times- Dispatch article excerpt
Valley Bank (Harrisonburg, Virginia) -- $1,100 bonuses for employees who work more than thirty hours a week, $750 bonus for employees who work under thirty hours a week; charitable contribution of $250,000:
"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President Neil Hayslett. "Rather than just banking all that, so to speak, we wanted to share it with the employees."
The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.
Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750.
The Timberville-based bank also announced a special dividend to shareholders and the formation of a community fund. During a scheduled training session, the company awarded $250,000 to three community foundations.
Altogether, Hayslett said $1.1 million was given out. – Feb. 20, 2018 WHSV 3 news article excerpt
F&M Bank (Timberville, Virginia) – Tax reform bonuses of up to $1,100:
Employees of F&M Bank were surprised on Tuesday to learn they would receive a bonus, which the institution attributes to additional earnings expected as a result of the GOP tax plan.
"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President Neil Hayslett. "Rather than just banking all that, so to speak, we wanted to share it with the employees."
The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.
Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750. – Feb. 20, 2018 WHSV 3 article excerpt
Walmart – Virginia employees at 138 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
AT&T -- $1,000 bonuses to 2,528 Virginia employees; Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“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,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
T.J. Maxx – 36 stores in Virginia – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Home Depot -- 49 locations in Virginia, bonuses for all hourly employees, up to $1,000.
Lowe's --9,000+ employees at 69 stores in Virginia. Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Waste Management Inc. (Multiple locations in Virginia) -- $2,000 bonuses:
In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.
“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.
“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10, 2018 Waste Management Inc. press release excerpt
Ryder (14 locations in Virginia) – Tax reform bonuses.
Cintas (Multiple locations in Virginia) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Chipotle Mexican Grill (Multiple locations in Virginia) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
Apple (Apple store locations in Arlington, Fairfax, McLean, Norfolk, Reston, Richmond, Virginia Beach, Woodbridge) - $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
McDonald’s (430+ locations in Virginia) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Comcast (Multiple locations in Virginia) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
Starbucks Coffee Company (Multiple locations in Virginia) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
U-Haul (Multiple locations in Virginia) – $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in Virginia) – Accelerated and increased compensation; pension plan contributions:
“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release
Wells Fargo – 264 locations in Virginia; Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Virginia examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list