Kansas Welcomes You - Welcome to Kansas Sign by Tony Webster is licensed under CC BY-SA 2.0

Kansas is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:

225,780 Kansas households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Kansas congressional district received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.

982,930 Kansas households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.

40,480 Kansas households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Kansas residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, at least four Kansas utilities reduced their customers’ bills (see below).

Thanks to the tax cuts, Kansas businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Ferroloy (Wichita, Kansas) — Doubled the size of its workforce:

Ferroloy, a Kansas-based small business that manufactures ductile and gray iron castings, was once on the verge of bankruptcy. But with the help of tax reform, they have doubled the size of their workforce and are in the process of dramatically expanding their facilities.

“We could tell in early 2018 that activity was picking up, so we added a second shift and more than doubled our workforce by the end of the year,” Soucie explained.

Soucie cited tax reform as a significant driver in allowing Ferroloy’s expansion plans to move faster than they otherwise would. More importantly, tax reform has ushered in the strongest economy in more than a decade, which is impacting Ferroloy by increasing demand for their products.

“To me, tax reform is an opportunity to level the playing field,” Soucie explained. “Large businesses have a significant competitive advantage due to scale and capability relative to smaller businesses. Over 50 percent of our working population is employed in small businesses. If you want small businesses to grow and prosper in this country, we need laws, like tax reform, that can drive economic growth and drive business.”

In Soucie’s eyes, keeping tax reform on the books is a no-brainer.

“I don’t understand why some people in Washington want to roll back something that allows small businesses to compete,” Soucie added. “Maybe it’s me being politically naïve, but economically, tax reform that allows small businesses to compete just makes sense.” –June 5, 2019 National Association of Manufacturers Shop Floor Blog

Lawrence Paper Company (Lawrence, Kansas) — $5 million in new equipment and expansion at all three locations; $500 bonuses for all 300 employees:

The tax bill signed by President Donald Trump last month was met with mixed reviews by some wondering who it would truly benefit, but the Lawrence Paper Company who employs three-hundred workers throughout its Freemont, Nebraska, Lawrence and Hutchinson locations is confident the tax bill will contribute to their future success as a business.

“Assuming you’ve got the same amount coming in then obviously you’re going to make more as a company that we can then again do three things, reinvest it into the business, into your people or pass it along to your shareholders,” says Tony Schleich, president of the Hutchinson company division.

Re-investing into its employees is the first step company owners took. This week, they surprised their 300 workers with the news each would receive a $500 bonus.

Employees like Josh Marshall were surprised at the news.

“This money is going to help me recover from the holidays and everything like that,” Marshall said. – Jan. 10, 2018 CBS KWCH Channel 12 news report

Heartland Seating Inc. (Shawnee, Kansas) – The Tax Cuts and Jobs Act helped the small business add four new jobs, raise wages, give bonuses to employees, and invest in new technology:

Members like Kathy Peterson of Heartland Seating Inc. in Kansas are reporting how the deduction is helping. “The federal Tax Cuts and Jobs Act of 2017 helped me grow my small business,” she explained. “With the money I saved, I was able to add four positions, offer raises and bonuses to many of our existing employees, and invest in a new database that allowed my company to expand from five states to six.”–Dec. 5, 2019, NFIB article.

United Bank & Trust (Marysville, Kansas) – All employees received a raise of $100 per month. According to ABA Bankers Journal the raise applies to both salaries and hourly employees.

Spirit Aerosystems (Wichita, Kansas) – Increased investment in training and technology:

“In my community, Spirit AeroSystems announced new investments in training and technology.” – June 11, 2018, Rep. Ron Estes statement on U.S. House Floor

Kansas Gas (Overland Park, Kansas) – The utility will pass along tax savings to customers:

The Kansas Corporation Commission Monday issued an order instructing Kansas Gas Service to return about $16.6 million in tax savings to its customers.

The KCC says this means residential customers can expect a one-time bill credit of $21.06. The KCC says the savings resulted from the Federal Tax Cuts and Jobs Act reducing the corporate tax rate from 35 percent to 21 percent in January 2018. – February 25, 2019 KWCH 12 News excerpt

Black Hills Energy (Wichita, Kansas) – The utility will pass along tax savings to customers:

About 37,000 customers in the Wichita area are getting a cut in natural gas bills starting this month to pass along federal tax reductions approved about a year ago.

Black Hills Energy customers in Wichita will see about a $7.30 reduction in their January gas bill and about a dollar a month in the future.

In total, the company is passing through about $1.7 million in annual savings to its customers, according to a statement issued Friday. – January 14, 2019 Wichita Eagle excerpt

WeStar Energy (Topeka, Kansas) – The utility will pass along tax savings to customers:

Today Westar Energy announced it will file a request before the Kansas Corporation Commission (KCC) to reflect in its electricity rates the full amount of tax savings from the change in the federal tax law. Westar said that a detailed application is being prepared and will be filed later this month or early February. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017, and became effective Jan. 1, 2018. 

“We agree with the KCC Staff and others that all these tax benefits should go to our customers,” said Mark Ruelle, President and CEO of Westar. “This application to update rates starts that process.”

All utility rate changes must be approved by the KCC. That process typically takes a few months to review and confirm. While the company estimated the tax benefit to be $65 million annually, or more, the KCC Staff and other parties will confirm the precise figures before the KCC.  In addition to passing through the benefit of lower tax rates, regulators will review and update all other costs to provide electricity.”—Jan. 18 2018, WeStar Energy press release

Kansas City Power and Light (Kansas City, Missouri)

Updated rates will include an approximate $100 million benefit to Kansas and Missouri Customers

Today KCP&L announced its intention to file rate update cases with the Kansas Corporation Commission (KCC) and the Missouri Public Service Commission (MPSC) to pass approximately $100 million in annual tax savings to customers, resulting from federal tax cost reductions. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017 and became effective on Jan. 1, 2018. KCP&L is committed to passing 100 percent of the benefit from this tax cut on to customers.

“We commend both the KCC and the MPSC for already initiating a process to review the impact of the federal tax reduction,” said Terry Bassham, President and CEO of KCP&L. “The federal tax cut has significant benefits which should be passed on to our customers in full. We look forward to working with our regulators and stakeholders on the best way to do that.” – Jan. 18, 2018 Kansas City Power and Light press release

TCG Group (Wichita, Kansas) — A hotel group is putting up a Hom2 Suites by Hilton that will be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

GC Group has selected a hotel flag for the Delano catalyst site — a 95-room Home2 Suites by Hilton — but president Nick Esterline says it’s even more significant that this is his company’s second major Opportunity Zone project.

“Although there’s a lot of hype about these deals, they’re really difficult to get done,” he says. “They’re big projects.”

Opportunity Zones are areas the federal government identifies as needing development and then defers taxes for investors who do work there.

With TGC’s planned $21 million building at Douglas and Emporia downtown and this $12.5 million hotel, Esterline says he guesses that “we’ve certainly closed the most in Opportunity Zoneprojects in Wichita” and possibly the state.

“For us, selfishly, it’s pretty special to say we did ’em,” he says. “Not to say there won’t be others that are larger.”

Esterline says Opportunity Zone deals as large as these also are “a big deal for Wichita.”– September 11, 2019 Wichita Eagle article

AT&T — $1,000 bonuses for 1,572 Kansas 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

Legacy Bank (Wichita, Kansas) – Employee bonuses:

Legacy Bank’s board of directors has approved paying a mid-year bonus of up to $1,000 per employee after the federal government’s Tax Cuts and Jobs Act, signed into law in December, lowered tax rates for businesses and individuals. – July 25, 2018, Wichita Business Journal article excerpt

Walmart – Kansas employees at 75 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 — 16 locations in Kansas — Bonuses for all hourly employees, up to $1,000.

Lowe’s —1,000+ employees at eleven stores in Kansas— 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 (Nine locations in Kansas) – Tax reform bonuses for employees.

Best Buy — Twelve locations in Kansas— $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.

Cintas (Multiple locations in Kansas) — $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

Taco John’s (Sixteen locations in Kansas): 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

Waste Management Inc. (Multiple locations in Kansas) — $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 Kansas) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.

Comcast (Olathe, Kansas) — $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.

Starbucks Coffee Company (94 locations in Kansas) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plant 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.

T.J. Maxx – (Nine locations in Kansas; Derby, Garden City, Hutchinson, Kansas City, Lawrence, Overland Park, Topeka, Wichita) – 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 Kansas) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Dollar Tree, Inc. (Multiple locations in Kansas) — Increased base wages, enhanced benefits including maternity leave for qualifying employees and employee training, totaling $100 million nationwide.

Bank of America (Locations in Andover, Derby, Kansas City, Lawrence, Lenexa, Manhattan, Mission, Olathe, Overland Park, Prairie Village, Shawnee, Topeka and Wichita) — $1,000 bonuses.

FedEx (Multiple locations in Kansas) – 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 (180+ locations in Kansas) – 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 (Eight locations in Kansas) – 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 Kansas examples, please email John Kartch at [email protected]

The running nationwide list of companies can be found at www.atr.org/list