John Kartch

Pennsylvania Can't Afford Biden's Tax Increases

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Saturday, May 18th, 2019, 1:03 AM PERMALINK

 

Today at 1:00 p.m. Joe Biden will host a major rally in Philadelphia, where he will repeat his vow to repeal the Tax Cuts and Jobs Act.

“First thing I’d do is repeal those Trump tax cuts,” said Biden on May 4 in South Carolina.

"When I'm president, if God willing I am, we're going to reverse those Trump tax cuts," Biden said this week in New Hampshire.

Biden's promise to repeal the tax cuts is a threat to raise taxes. Repeal of the tax cuts would hit Pennsylvania hard:

  • Pennsylvania households would lose their tax cut -- a 24.5 percent tax cut on average, according to data reported by H&R Block.
     
  • Pennsylvania residents would again be forced to pay the highly regressive Obamacare individual mandate tax. 166,680 Pennsylvanians paid the tax totaling $108,842,000 according to the most recent IRS annual statistics ((2016). 81 percent of people hit with the tax made less than $50,000 a year, and 40 percent made less than $25,000 a year. This tax was one of the many violations by Biden of his pledge against any and all middle class taxes.
     
  • 840,000 Pennsylvania households who claim the Child Tax Credit would see the credit slashed in half from $2,000 to $1,000.
     
  • 4.4 million Pennsylvania households who claim the standard deduction would see it slashed in half. (TCJA nearly doubled the standard deduction from $6,300 to $12,200 for an individual and from $12,600 to $24,000 for a family.)
     

The tax cuts are helping a long list of Pennsylvania businesses give pay increases, benefit increases, and bonuses. For example:

  • Uncle Charley's Sausage (Vandergrift, PA) hired new employees, purchased new equipment including a new sausage stuffer, and added a new production line.
     
  • Hudson Facades (Linwood, PA) increased base pay and put $3,000 into every factor worker's 401(k) account.
     
  • Almo Corporation, the Philadelphia-based appliance distributor, is investing in a new distribution center and an ongoing headquarters renovation that can accommodate 65 additional employees.
     
  • Guy Chemical Company (Somerset, PA) increased wages, bonuses, and investment in new equipment including a new forklift, new laboratory furnishings, updated computer equipment, and a new software system.
     
  • Dollar Bank (Pittsburgh, PA) gave $2,000 permanent raises for employees making $60,000 or below.
     

If Biden repealed the tax cuts, Pennsylvanians would also be stuck paying higher utility bills because the corporate tax rate would revert back to 35 percent. Thanks to the Tax Cuts and Jobs Act, the corporate rate was reduced to 21 percent, and as a direct result PA utility companies passed on these savings to customers in the form of lower electric, water, and gas bills.

Examples include Pike County Light & Power Company, PPL Electric Utilities Corporation, Wellsboro Electric Company, West Penn Power Company, PECO Energy Company, Peoples Gas Company, UGI Central Penn Gas Inc., Pennsylvania American Water Company, and Citizens Electric Company of Lewisburg.

From a nationwide perspective, if Biden repeals the Tax Cuts and Jobs Act, the following would happen:

  •  A family of four earning the median income of $73,000 would see a $2,000 tax increase.
     
  • A single parent (with one child) making $41,000 would see a $1,300 tax increase.
     
  • Millions of low and middle income households would be stuck paying the Obamacare individual mandate tax.
     
  • Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
     
  • Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.
     
  • The USA would have the highest corporate income tax rate in the developed world.
     
  • Taxes would rise in every state and every congressional district.
     
  • The Death Tax would ensnare more families and businesses.
     
  • The AMT would snap back to hit millions of households.
     
  • Millions of households would see their child tax credit cut in half.
     
  • 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.
     

As noted by the New York Times, thanks to the GOP tax cuts, “Most people got a tax cut.”

The NYT also stated: “To a large degree, the gap between perception and reality on the tax cuts appears to flow from a sustained — and misleading — effort by liberal opponents of the law to brand it as a broad middle-class tax increase.”

The Washington Post also stated: “Most Americans received a tax cut.”

More evidence of the benefits flowing from the tax cuts can be found in a recent H&R Block report, which stated, “overall tax liability is down 24.9 percent on average.”

In Biden's home state of Delaware, the report found that residents received a 24.6% reduction in their taxes, on average.

Biden and the rest of the 2020 Democrats have thoroughly convinced themselves the tax issue is dead, but Americans will have their own say at the ballot box.

"Joe Biden is not Methuselah. He is Walter Mondale part deux," said Grover Norquist, president of Americans for Tax Reform. In 1984 Mondale famously promised to raise taxes if elected. He lost to Ronald Reagan in the electoral college 525-13, winning only his home state of Minnesota and the District of Columbia.

See also:

Biden: “First thing I’d do is repeal those Trump tax cuts.”

Joe Biden broke his middle class tax pledge

Kamala Harris Vows Repeal of Tax Cuts “on Day One”

“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses

Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”

 

 

Photo Credit: Marc Nozell/Flickr

More from Americans for Tax Reform


CNN: Sanders Would Repeal the Trump Tax Cuts

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, January 15th, 2020, 9:45 AM PERMALINK


Bernie Sanders would repeal the Tax Cuts and Jobs Act in order to pay for some of his pricey policy proposals, according to a report from CNN:

Other Sanders proposals, such as applying the Social Security payroll tax to annual incomes over $250,000, rescinding the Trump tax cuts and imposing an array of other new taxes on corporations, might collect another $4 trillion over 10 years."

A Sanders promise to repeal the tax cuts is a promise to raise taxes. If the tax cuts were repealed:

  • A family of four earning the median income of $73,000 would see a $2,000 tax increase.

  • A single parent (with one child) making $41,000 would see a $1,300 tax increase.

  • Millions of low and middle-income households would be stuck paying the Obamacare individual mandate tax.

  • Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.  

  • Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.

  • The USA would have the highest corporate income tax rate in the developed world, higher than the United Kingdom (19 percent), China (25 percent), Canada (26.8 percent), and Ireland (12.5 percent). 

  • Taxes would rise in every state and every congressional district.

  • The Death Tax would ensnare more families and businesses.

  • The AMT would snap back to hit millions of households.

  • Millions of households would see their child tax credit cut in half.

  • 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 is a U.S. Senator, households who made the state average income of $61,438, received a tax cut of around $1,471, according to a recent Tax Foundation report.

Even left-leaning and establishment media outlets confirm the good news arising from the Tax Cuts and Jobs Act:

If you want to stay up-to-date on their threats to raise taxes, visit www.atr.org/HighTaxDems.

See more:

Warren Falsely Claims Her MFA Plan Will Not Raise Middle Class Taxes by “One Thin Dime”

Biden: Sanders Tax “Doesn’t Even Come Close” to Paying for Medicare for All

Buttigieg Would Repeal the Entire Trump Tax Cut Primary tabs 

Warren Dodges Private Healthcare Question Three Times During Morning Joe Interview

Biden: “Get Rid of the Trump Tax Cut”

Pete Buttigieg: “We Gotta Roll Back the Trump Tax Cuts for Corporations”

Biden: “Anybody Who Can Throw Coal Into a Furnace Can Learn How To Program”

Warren Contradicts Herself on Medicare for All, Again

Mayor Pete’s “Carbon Tax and Dividend” Will Raise Taxes on Social Security Recipients

Booker Praises Opportunity Zones While Planning to Repeal TCJA Which Created Them

Buttigieg Praises Opportunity Zones, Vows to Eliminate TCJA Which Created the Zones in the First Place

Sanders: “Of Course” Medicare for All Will Cost You Something

Despite Steep Tax Hikes, Biden’s Numbers Don’t Add Up

Biden: Capital Gains Tax Rate “Could Go Higher” Than 40%

Biden on Medicare for All: “You’re Going to Have to Raise Taxes on the Middle Class”

Sanders Senior Adviser: “Yes, We Will Repeal the Trump Tax Scam”

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

Fact Check: Mark Zandi Misleads Americans, Claims Warren’s Healthcare Plan Will Not 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 Claims Americans Making Less Than One Billion Dollars Will “Not Pay a Penny More” in Taxes Under Her Medicare for All Plan

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”

Biden Endorses Carbon 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

Elizabeth Warren "Wealth Tax" was described by the WaPo editorial board as having "a certain authoritarian odor"

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: Paul Weaver/Flickr


How the Trump Tax Cuts Have Helped Wisconsin

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, January 14th, 2020, 12:00 AM PERMALINK


Tonight President Trump is hosting a rally in Milwaukee. Wisconsin residents are raking in the benefits of the Tax Cuts and Jobs Act, signed into law by Trump:

Doubled child tax credit: 424,970 Wisconsin households are benefiting from the TCJA’s doubling of the child tax credit. The Trump tax cuts doubled the child tax credit from $1,000 per child to $2,000 per child.

Doubled standard deduction: 1,954,190 Wisconsin households are benefiting from the TCJA’s doubling of the standard deduction. The Trump tax cuts doubled the standard deduction from $6,000 to $12,000 for individuals, and from $12,000 to $24,000 for married couples. Thanks to the Trump tax cuts, nine out of ten households now take the standard deduction which reduces their tax burden and simplifies the tax filing process.

Obamacare individual mandate tax relief: Thanks to the Trump tax cuts 80,240 Wisconsin households are no longer stuck paying the Obamacare individual mandate tax. Most households hit with this up-to-$2,085 tax made less than $50,000 per year.

Tax cut: Every income group in every Wisconsin congressional district saw a tax cut.

Lower utility bills: As a direct result of the TCJA’s corporate rate cut, Wisconsin residents are paying lower utility bills. Lower electric, water, and gas bills help households each month, and also help small businesses operating on slim profit margins. Wisconsin examples of utilities passing on tax savings to customers include – but are not limited to Alliant Energy, We Energies, and Superior Water, Light & Power.

Thanks to the TCJA’s corporate tax rate cut – from 35 percent to 21 percent – and the TCJA’s 20 percent tax cut for small businesses, employers of all sizes are hiring, expanding, increasing pay and benefits, and paying special tax-cut bonuses:

MusicNotes (Madison, Wisconsin) – Salary increases for employees:

The new year brings a new salary increase for all 55 employees at Musicnotes, Inc., the worldwide leader in digital sheet music based in Madison, Wisconsin. Effective January 1st, the 3% salary increase is tied specifically to corporate tax reform and is in addition to Musicnotes' existing annual raises to eligible employees. 

"We're genuinely appreciative of our loyal and gifted team at Musicnotes and we are thrilled to share the benefit of lower corporate taxes with them," said Executive Chairman, Tim Reiland. "It's the right thing to do and it's also smart business."

After a strong 2017 sales performance, Musicnotes was named to the Internet Retailer Top 1000 list for the 13th straight year in 2017 and garners over half of the worldwide digital sheet music market, according to traffic statistics from SimilarWeb. The company has sold products to over six million customers since 1998.

"Musicnotes has paid a full corporate tax rate over the past several years," indicated Reiland. "Beyond the Jan 1 salary increases, we will accelerate hiring plans and also have increased flexibility regarding technology projects and investment opportunities in 2018 and beyond."– Jan. 8, 2018 MusicNotes press release

Trico (Pewaukee, Wisconsin) -- Employee bonuses, 401(k) expansions, hiring new employees:

For example, as a direct result of the tax cuts, full-time employees at the Pewaukee-based Trico Corporation will receive $650 bonuses and increased contributions into their 401(k) accounts. The company will also hire more full-time workers to fill new positions. - April 17, 2018, Rep. Jim Sensenbrenner article excerpt

Brian's Electric (Stratford, Wisconsin) – The Tax Cuts and Jobs Act allowed the company to increase wages:

Jacobs told Budget & Tax News he has passed the benefits of TCJA along to his employees,

“I gave out, when you add it all up, about $150 an hour worth of wage increases,” Jacobs said. “Depending on how they have their taxes taken out of their checks, the lowest was around $14 a week in net take home pay, all the way up to $65 in net take home pay.” – Sept. 12, 2018, Heartland Institute article.

Koehler Flooring, Inc. (Green Bay, Wisconsin) – This family carpet and flooring company gave $1,000 bonuses to seven full-time employees:

“The tax reform bill is a huge win for the USA and will have positive effects on our floor covering business. Our customers have more capital to use for expansion and remodeling which is great news for all construction trades. There is more work to be done on the tax code but it's nice to see this recent reversal on punishing success. My crew was very happy to receive their tax reform good news.” -- David Koehler, President.

Sprecher Brewing Company (Milwaukee, Wisconsin) – The brewery used savings from the Tax Cuts and Jobs Act to reinvest in the company and create new jobs:

"Other breweries in this area are certainly doing the same thing with the savings they get as we are here," said Jeff Hamilton, president ofSprecher Brewing Company. "This act gave a bit of a tax break to all alcohol producers."

Right now, the team at Sprecher said the money saved from the tax breaks goes back into the business.

"Gives us additional funds that can be reinvested back into the company," Hamilton said. "Back into creating additional products, which on top of that creates new jobs." – Oct. 9, 2019, Fox 9 article.

Associated Bank (Green Bay, Wisconsin) – $500 employee bonuses (exact number receiving bonus unknown at this time); base wage will rise from $10 to $15 per hour:

Associated Bank today announced plans to raise its minimum hourly wage from $10 to $15 per hour and to distribute a one-time bonus of $500 for all hourly, non-commissioned employees once tax reform legislation is signed into law.

The pay increase and one-time bonus are expected to be distributed during the first pay cycle of 2018. This combined investment in the company's workforce will positively impact 55% of its employees.

"Every day our customers share stories of our colleagues delivering a positive customer experience," said Associated Bank President and CEO, Philip B. Flynn. "Our ability to recognize their work in this way is something we are proud to do."

Flynn said the new tax legislation, particularly the reduction in business tax rates, allowed the company to share some of the benefits with its employees. It also helps position the company to further enhance the customer experience and its community investments in the future. -- Dec. 21, 2017 Associated Bank press release

Central Standard Distillery (Milwaukee, Wisconsin) – The Tax Cuts and Jobs Act allowed the distillery to hire four new employees, invest in a new facility, and ordered a new bottling line:

Central Standard Distillery co-owner Evan Hughes said his business was able to grow faster than it normally would because of the act. He attributes four key growth areas to the success of the act, including: Central Standard hired four new employees, bringing staff totals to 22 people. The company invested in a 15,000-square-foot facility on Clybourn Street. In addition, Central Standard ordered a new bottling line for improved efficiency and offered health care to all of its employees.

"It gave us the courage to expand our business quicker than we normally would," Hughes said. – Dec. 10, 2019, Milwaukee Business Journal.

Click here to see more Wisconsin examples.


List of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, January 8th, 2020, 2:00 PM PERMALINK


Carbon Tax Decade of Failure: Voters Reject Carbon Tax

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Monday, December 30th, 2019, 9:30 AM PERMALINK

Carbon tax pushers have spent the last decade claiming "momentum" as voters -- even in blue states -- thoroughly defeated carbon tax bills and the politicians who sought to impose them:

“A carbon tax raises the cost of gasoline for your car, your home heating and conditioning and hikes the cost of living. Voters throughout the United States, Canada, Australia, and France have sent the same message: NO to any energy tax/carbon tax. Rarely has any policy proposal been so thoroughly tested and rejected over time and by voters around the world,” said Grover Norquist, president of Americans for Tax Reform. 

November 2, 2010 -- South Carolina voters oust carbon-tax supporting congressman Bob Inglis in the Republican primary election. Republican Congressman Bob Inglis proposed a carbon tax and was defeated nearly 3 to 1 in his Republican primary election. His opponent, Trey Gowdy, made it clear he would oppose a carbon tax. To this day, Inglis has a job where he tries to convince Republicans to impose a carbon tax, without much to show for it (see listings below).

September 7, 2013 -- Australia voters kick carbon tax supporting politicians out of office. After opposing the carbon tax during her 2010 campaign, Labor Prime Minister Julia Gillard flip-flopped and introduced a carbon tax once elected. In 2013, Tony Abbott campaigned against Gillard, promising that legislation to abolish the carbon tax would be before Parliament within 100 days of his victory. Abbott defeated Gillard and repealed the carbon tax.

January 7, 2015 -- Center for American Progress founder John Podesta tells colleagues that carbon tax polling “all sucks.” Hillary Clinton campaign chairman and founder of the Center for American Progress John Podesta wrote: "We have done extensive polling on a carbon tax. It all sucks."

March 11, 2015 -- Hillary Clinton’s policy research team writes internal memo concluding that a carbon tax “would disproportionately impact low income households.” Clinton decided against pursuing a carbon tax, based on a detailed campaign research memo which concluded that a carbon tax:

-would have a disproportionate impact on low income households

-would cause gas prices to increase 40 cents a gallon

-would cause electricity prices to increase 12%-21%

-would cause household energy bills to go up $480 a year

-would increase the cost of household goods and services

June 23, 2015 --  Hillary Clinton’s campaign manager admits a carbon tax would be "lethal in the general" election.  Robby Mook didn’t want Clinton’s campaign supporting a carbon tax and said, "to be clear: It’s lethal in the general, so I don’t want to support one.”

November 8, 2016 -- Washington state voters reject carbon tax. True-blue Washington State voters were presented with a carbon tax ballot measure known as Initiative 732. The measure failed big time. It was rejected by voters, 59 - 41.

November 8, 2016 -- Blue state Vermont voters elect anti-carbon tax Republican Phil Scott as Governor. Scott defeated pro-carbon tax Democrat Sue Minter. For voters, there was a clear contrast between the voters on the carbon tax. Scott made clear that if elected, he would veto a carbon tax. Democrat Minter supported a carbon tax.

June 7, 2018 -- In Canada, Ontario voters thoroughly kick carbon tax supporting politicians out of office. Due to her support for a carbon tax Liberal Ontario Premier Kathleen Wynne went down in the worst defeat of a governing party in modern Ontario history. Liberal Wynne was in favor of a carbon tax and decisively lost to conservative Doug Ford, who ran on abolishing the carbon tax.

July 12, 2018 -- In Canada, anti-carbon-tax conservative Devin Dreeshen wins Alberta special election. Dreeshen won the Innisfail-Sylvan Lake (Alberta, Canada) special election. He said of the voters: "They voted by huge numbers to send this failed NDP government a message that you’re living on borrowed time and next year we’re going to fire this NDP government and scrap their carbon tax to get Alberta’s economy back on track.”

July 12, 2018 -- In Canada, anti-carbon tax conservative Laila Goodridge wins Alberta special election. By fighting against the carbon tax, Laila Goodridge was elected Member of the Legislative Assembly of Fort McMurray-Conklin in the special election with over 65.9% of the vote. "Tonight, voters overwhelmingly rejected the NDP's carbon tax, their smear and tax hike agendas," said Goodridge.

November 6, 2018 -- Washington State voters reject a carbon tax, again. True blue Washington state voters rejected a carbon tax ballot measure -- Initiative 1631 -- by a margin of 56-44. This is the second consecutive time Washington state voters rejected a carbon tax ballot measure (See the November 8, 2016 entry below).

November 6, 2018 -- Florida voters reject carbon-tax-pushing Congressman Carlos Curbelo. In September 2018 -- with much fanfare at the National Press Club -- Florida congressman Carlos Curbelo introduced a bill to impose a massive carbon tax on the American people. The bill would have imposed a $688 per year hike in household energy costs, hitting lower income households the hardest. If re-elected, Curbelo pledged to hit the road and travel across the country to sell the legislation. Instead, voters kicked him out of office. Just like Inglis, Curbelo now has a job where he tries to convince Republicans to impose a carbon tax, without much to show for it.

December 4, 2018 -- France suspends 2019 carbon tax increase. On January 1, 2019 a steep increase in the fuel and diesel tax was set to take effect, part of President Emmanuel Macron's stated goal of CO2 reduction. The diesel tax was set to rise by 6.5 cents per liter, and the fuel tax was set to rise by 2.9 cents per liter. This was on top of the carbon tax hikes that took effect on Jan. 1, 2018: a tax hike of 7.6 cents per liter on diesel and a hike of 3.9 cents per liter of fuel. The carbon tax increases sparked the Yellow Vest movement, which led to Macron's suspension of the 2019 tax hikes.

February 28, 2019 -- Maine citizens march against Democrat carbon tax proposal, killing the bill. In a committee hearing in the Maine House of Representatives Rep. Deane Rykerson (D-Kittery), the lawmaker sponsoring legislation to impose the nation’s first statewide carbon tax, announced that he was pulling the bill. Nick Isgro, mayor of Waterville and vice chairman of the Maine Republican Party, attributed the change to a bipartisan coalition of Maine citizens who marched to the Capitol to voice opposition to the carbon tax.

As noted by ATR's Patrick Gleason in Forbes:

In the hours-long hearing on Representative Rykerson’s bill, 60 Maine residents testified in opposition to the proposed carbon tax, explaining the harm that the regressive tax would do to Maine families and employers. Only one person testified in favor of the bill. This strong display of public opposition to a carbon tax was instrumental in killing the bill in committee.

April 16, 2019 -- The Premier of Alberta – carbon tax supporter Rachel Notley – was thoroughly defeated by the anti-carbon tax Jason Kenney and his United Conservative Party. Kenney’s top issue: repeal the carbon tax. “From its very introduction, the carbon tax has been very unpopular in Alberta. Even dressing it up and trying to bribe taxpayers with rebate cheques didn't work,” said Scott Hennig, President and CEO of the Canadian Taxpayers Federation. “Alberta's premier-elect Jason Kenney recognized this, and committed that Bill 1 would be to scrap the carbon tax. Clearly, it has been a big vote-getter for his party.”

As noted by the Calgary Herald: “The result makes history, in that it marks the first time an Alberta government has gone down to defeat after only one term.”

The imposition of the carbon tax increased transportation and utility costs and burdened everyday living. An Alberta school district even had to kick 400 kids off school bus service due to the district's $3.3 million carbon tax bill.

May 18, 2019 -- In one of the greatest upsets in Australian election history, voters re-elected the anti-carbon tax conservative coalition, defeating the pro-carbon tax Labor opposition. Experts had said the election was "unlosable" for Labor and its Green New Deal style agenda.

August 26, 2019 -- The left-of-center Denver City Council decides to halt consideration of a city-wide carbon tax. For weeks, the carbon tax was touted as inevitable, with the council president saying the city would be "all in on the Paris climate accord." Residents and the business community arose in opposition and the carbon tax bill was "postponed."

October 19, 2019 -- Carbon tax pusher Francis Rooney (RINO-Fla.) announces his resignation from the U.S. House, effective at the end of his current term. Carbon tax pushers frequently claim "momentum" with congressional Republicans, but the phone-it-in Rooney was one of only two congressional Republicans foolish enough to sign onto a carbon tax. Perhaps "ambassador" Rooney will join Inglis and Curbelo by getting a job trying to convince Republicans to impose a carbon tax.

October 21, 2019 -- Voters in Canada hand carbon tax-imposing Prime Minister Justin Trudeau a defeat by ending his majority, throwing 27 of Trudeau's Liberals out of Parliament. Not a single Liberal was elected in Saskatchewan and Alberta, the provinces hit hardest by the carbon tax. Anti-carbon tax conservatives won all 14 seats in Saskatchewan, and 33 out of 34 seats in Alberta (the final seat went to the NDP).

December 2019 -- Massachusetts declines to take up carbon tax bill. After big "carbon tax is gaining momentum" hype at the beginning of the session, and after gaining over 100 co-sponsors, the Democrat-controlled Massachusetts legislature adjourns for the year without taking up the carbon tax bill, H. 2810.

As noted by ATR's Patrick Gleason in Forbes:

Legislation (H.2810) introduced by Massachusetts Representative Jennifer E. Benson (D-Lunenburg) would impose a carbon tax of $20 per ton of carbon dioxide equivalent in the first year, increasing by $5 each year until the tax hits $40 per ton. A new study commissioned by the Massachusetts Fiscal Alliance Foundation and conducted by the Beacon Hill Institute (BHI) finds that the average Massachusetts household would be hit with a tax hike of $755 in 2022 if Rep. Benson’s bill were to be enacted. By the fifth year, 2026, that annual tax hike would rise to $1,263 per household. 

The bill would have increased household costs, especially heating costs during the long and cold winters.

See also: Conservative Groups United Against Carbon Tax: "We oppose any carbon tax."

Photo Credit: goandgo


Thanks to GOP Tax Cuts, Craft Beverage Producers are Hiring and Expanding


Posted by John Kartch on Friday, December 6th, 2019, 5:00 AM PERMALINK

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)

Alexander Valley Vineyards (Healdsburg, California) – The vineyard was able to create new jobs, buy new equipment, and remodel their tasting rooms because of the Tax Cuts and Jobs Act:

“The craft beverage bill has been an incredible boost for our industry and this extension allows us to continue investing in our wineries by buying new equipment, remodeling tasting rooms, hiring new employees and more,” said Hank Wetzel, founder and family partner of Alexander Valley Vineyards and Chairman of Wine Institute. “All of this benefits local communities in the form of jobs, tax revenue and support for the hospitality industry.” – Dec. 20, 2019, Southeast Farm Press article.

Alter Ego Cider (Portland, Oregon) – The Tax Cuts and Jobs Act allowed the company to invest in the business and hire more people:

Anne Hubatch, co-owner of Alter Ego Cider and VP of the Northwest Cider Association, said “The [CBMTRA] has made real and lasting impacts to my small business. As a micro-craft cidery, this act helps us to save on our excise taxes which in turn keep more money in the business to grow and invest in more staff and equipment." – Feb. 13, 2019, BeverageDaily article.

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

 

Bar Cento (Cleveland, Ohio) – The tax cuts allowed the bar to add new jobs and invest more in their facility:

Sam McNulty, co-founder of multiple Cleveland brewery/restaurants including Market Garden Brewery and Bar Cento, credited the tax break with helping his operations expand at an accelerated rate, "which in our case meant several million dollars of investment in our facility as well as the creation of a large number of full-time positions."

Not having certainty for the tax cut beyond next year could stymie other, more long-term investments.

"As in life, so it goes in business, where if the future is uncertain, you are more likely to be less secure and optimistic and thus more conservative and frugal," McNulty said. "There's not a bank on the planet that will finance a business that has only a one-year lease. And so a one-year extension is appreciated, but it is not enough to really fuel this growing industry and reach the full promise of the economic benefits of local craft beer." – Dec. 17, 2018, Crains Cleveland article.

Brian's Electric (Stratford, Wisconsin) – The Tax Cuts and Jobs Act allowed the company to increase wages:

Jacobs told Budget & Tax News he has passed the benefits of TCJA along to his employees,

“I gave out, when you add it all up, about $150 an hour worth of wage increases,” Jacobs said. “Depending on how they have their taxes taken out of their checks, the lowest was around $14 a week in net take home pay, all the way up to $65 in net take home pay.” – Sept. 12, 2018, Heartland Institute article.

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

Central Standard Distillery (Milwaukee, Wisconsin) – The Tax Cuts and Jobs Act allowed the distillery to hire four new employees, invest in a new facility, and ordered a new bottling line:

Central Standard Distillery co-owner Evan Hughes said his business was able to grow faster than it normally would because of the act. He attributes four key growth areas to the success of the act, including: Central Standard hired four new employees, bringing staff totals to 22 people. The company invested in a 15,000-square-foot facility on Clybourn Street. In addition, Central Standard ordered a new bottling line for improved efficiency and offered health care to all of its employees.

"It gave us the courage to expand our business quicker than we normally would," Hughes said. – Dec. 10, 2019, Milwaukee Business Journal.

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

Crane Brewing Company (Raytown, Missouri) – The Tax Cuts and Jobs Act allowed the brewery to create new jobs:

The beer is flowing in Raytown at Crane Brewing Company. Business is good now, vice president and co-founder Chris Meyers said. 

He credits the expansion of his business in part to the Tax Cuts and Jobs Act of 2017, he Meyers said substantially cut federal excise taxes on America's brewers.

"For us, we’ve been able to add a canning line. We’ve been able to add some more staff here to kind of grow,” he explained. “At this point, there’s over 100 breweries in Missouri. Almost 10,000 people employed by the industry. Over a billion dollars in revenue to the state."

The brewer said he believes the legislation helped spur small business growth.

“By cutting these excise taxes in half, it’s really let us move forward, produce more product, get more sales, and actually increase the revenue available to everyone," Meyers told KCTV5 News. – Dec. 6, 2019, KCTV 5 News.

Crooked Tooth Brewery (Tucson, Arizona) – Because of the Tax Cuts and Jobs Act, the brewery is planning to invest in new jobs and  has been able to give back to the community:

The Vernons have been in the brewery business for about three years. Most of that time has fallen under the Craft Beverage Modernization Tax Reform Act passed in 2017. Because of this, they pay $3.50 a barrel in taxes, but at the start of 2020 that could double.

“We had about two months of business where we had $7 a barrel,” Vernon said. “That two months of business we didn’t do a lot of brewing, you know.”

This tax break was like a glass half full for small business.

Like the glass, there was plenty of room to grow. But if it expires, there's fear that optimism goes down the drain.

“Something that we may be investing in employment or we also give a lot to the community,” Vernon said.

These are things Vernon said he's been able to do because of this tax break, like working with local nonprofits on events. – Dec. 7, 2019, KLOD article.

Diamond Bear Brewery (Little Rock, Arkansas) – The brewery saved over $10,000 because of the Tax Cuts and Jobs Act and invested it in employees and equipment:

Russ Melton, president of Diamond Bear Brewing, said the Craft Beverage Modernization and Tax Reform Act is a big relief for his business.

"It lowered it from $7 per barrel which is 31 gallons to $3.50 a barrel," he said.

He said it's allowed him to save thousands every year.

"Doesn't sound like a lot but if you do 3,000 barrels that's $10,000," Melton said.

That's 10-thousand dollars that can be used on employees or equipment.

"It is a big help for small businesses," he said. – Dec. 18, 2019, THV11 article.

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

Dynalab Inc. (Reynoldsburg, Ohio) – Because of the Tax Cuts and Jobs Act, the company was able to invest in new manufacturing equipment, employees received a bonus as well as a larger take home pay:

On a recent trip to Ohio, President Donald Trump proclaimed: “America is once again open for business.” Evidence for that statement? The Tax Cuts and Jobs Act of 2017.

As the president and chief executive officer of Dynalab Inc., a small-business manufacturer of electronic products in central Ohio, I can say that we already see many benefits provided by the corporate and personal tax-rate reductions of the 2017 act:

• Larger 2017 year-end bonuses and greater take-home pay for most of our associates.

• $2 million-plus in new manufacturing equipment.

Although final regulations have not been released, and more needs to be done to rein in the Internal Revenue Service, our country’s economy is benefiting. The growth in gross domestic product, jobs creation and the stock market tell the tale.

Gary James
Reynoldsburg  
– March 22, 2018, Columbus Dispatch article.

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

 

Garrison Brothers Distillery (Hye, Texas) – The brewery was able to hire more employees and increase their production because of the Tax Cuts and Jobs Act:

Starting a liquor distillery in the United States is expensive. Take it from Dan Garrison, who runs Garrison Brothers Distillery in Hye, roughly an hour west of Austin. He estimated in November that it costs about $7 million to get a whiskey distillery up and running — between stills, fermentation tanks, grain silos and other operational costs.

Garrison said Garrison Brothers paid an excise tax of $13.50 per proof gallon from the time he started his business in 2006 until 2017, when the tax break took effect. After that the tax was reduced to $2.70 per proof gallon — 80% less — which Garrison said put spirits on par with what wine and beer producers were paying.

As a result, “I could do things I could only dream of doing,” Garrison said.

Since 2017, Garrison Brothers has grown from 11 to 45 employees and tripled the amount of cases it produces annually, projecting to top 9,000 this year. – Dec. 17, 2019, Austin Business Journal.

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

Grand Rounds Brewing Co. (Rochester, Minnesota) – Because of the Tax Cuts and Jobs Act, the brewery was able to hire a new employee as well as invest in research and development:

“We are really a true industry that’s growing in the state of Minnesota, not only across the country, but Minnesota’s really got a lot of craft brewers,” said Tessa Leung, CEO of Grand Rounds Brewing Co. in Rochester.

Grand Rounds was able to invest in the research and development of their beers, update equipment and hire another brewer, but the tax increase will mean making adjustments.

“I wish we had, you know, the ability to double our prices and have nobody say anything about it, or take a vote on it, but people vote with their dollars, and they vote with where they’re at,” Leung said. – Dec. 5, 2019, KAAL 6 News.

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

Great Lakes Distillery (Milwaukee, Wisconsin) – Used savings from the Tax Cuts And Jobs Act to add space and buy new equipment:

When the Craft Beverage Modernization and Tax Reform Act was passed two years ago, Great Lakes Distillery founder and owner Guy Rehorst was able to make a lot of advances to his business with the added savings. He added space to his Walker's Point distillery at 616 W. Virginia St. in Milwaukee. He also added new equipment and new personnel and began producing more product for future sale. – Dec. 10, 2019, Milwaukee Business Journal.

Fremont Brewing (Seattle, Washington) – The Tax Cuts and Jobs Act allowed the company to expand healthcare benefits to employees' dependents: 

In 2017, Congress passed a tax cut for breweries, distillers, and wineries. Nelson said that allowed them to invest in additional employee benefits, like extending health benefits to employees’ dependents.

“We've got young people that are getting married and having families, and they are needing benefits,” she said. “So we decided that we would extend health benefits to the dependents of those families.” – Dec. 18, 2019, KIRO article.

Helio Basin Brewery (Phoenix, Arizona) – The Tax Cuts and Jobs Act allowed the brewery to expand:

Local breweries have been paying a $3.50 tax per barrel, but once the bill expires, it will double, increasing to $7 per barrel. "Even though it doesn't sound like a lot of money, a $3.50 increase, it really does matter a lot to us, especially at our scale," said Dustin Hazer, the owner of Helio Basin Brewery. "Pretty much anything we try to do to increase our efficiency, it's a matter of change. It's not even once the sale happens; it's once we process it. So, we're getting immediately taxed on that volume. It's not when we sell it; it's when we process it."

Hazer opened his brewery a little more than three years ago, before the tax break was put in place.  "The first year we had the full tax and then the last couple we've had the nice tax," he said. "Basically, when that tax break happened, we started to launch into some of the bigger stores, can products. We wouldn't have been able to do that even though it doesn't seem like a lot of money." – Dec. 5, 2019, AZFamily article.

Iron Fish Distillery (Thompsonville, Michigan) – Because of the Tax Cuts And Jobs Act, the owner was able to create new full time jobs and invest in the company:

“For us this has been a game changer. This tax incentive, this tax decrease really came right at a time when we needed to take some risks, and invest in the business and hire people and so it was, I think, as intended, worked here at Iron Fish,” said Anderson. – Dec. 17, 2019, 9&10 News article.

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

 

Loon Liquor (Northfield, Minnesota) – Because of the Tax Cuts and Jobs Act, the business was able to reinvest in the community and buy more equipment:

Mark Schiller of Loon Liquor in Northfield also that the tax break has enabled his distillery to expand its business dramatically, which he's reinvested in the local agriculture community and other local businesses. If the tax break goes away, he says it would force him to cut back planned investments significantly.

"This tax break enabled us to invest more in local agriculture, more in our inventory, more in barrel aging our spirits, which is important for future profitability, and more in equipment," he said. "If it goes away, that will dramatically impede our business growth or our ability to invest in growth." – Faribault Daily News

Lyon Distilling Company (St. Michaels, Maryland) – The owner said that the distillery used savings from the Tax Cuts and Jobs Act to double locations, create new jobs, and invest in new equipment:

I mean, in the last two years every distillery I know has taken the savings from this tax cut and reinvested in their team, in their equipment, expanded, doubled locations. Lyon Distilling has grown ten times in size alone in the last two years. – Dec. 5, 2019, WMAU radio show.

Maine Beer Co. (Freeport, Maine) – The company used savings from the Tax Cuts and Jobs act to expand and reinvest in the business and employees:

“The savings resulting from the adjusted FET rates have had a huge impact on the brewing industry here in Maine,” Dan Kleban, co-owner of Maine Beer Co., said in a news release from the Brewers Association, a Boulder, Colo.-based trade group.

“Our company was already in the midst of an expansion when this bill passed, and the savings allowed us to reinvest in the business, our employees and the environment," Kleban said. "Growth in Maine’s brewing industry has helped boost other economies throughout the state; creating new agricultural opportunities, helping increase tourism and even shaping beer science programs in our local colleges. In uncertain financial times, these savings help create a stronger economic future here in Maine.” – Dec. 27, 2019, Mainebiz article.

Market Garden Brewery (Cleveland, Ohio) – The tax cuts allowed the brewery to add new jobs and invest more in their facility:

Sam McNulty, co-founder of multiple Cleveland brewery/restaurants including Market Garden Brewery and Bar Cento, credited the tax break with helping his operations expand at an accelerated rate, "which in our case meant several million dollars of investment in our facility as well as the creation of a large number of full-time positions."

Not having certainty for the tax cut beyond next year could stymie other, more long-term investments.

"As in life, so it goes in business, where if the future is uncertain, you are more likely to be less secure and optimistic and thus more conservative and frugal," McNulty said. "There's not a bank on the planet that will finance a business that has only a one-year lease. And so a one-year extension is appreciated, but it is not enough to really fuel this growing industry and reach the full promise of the economic benefits of local craft beer." – Dec. 17, 2018, Crains Cleveland article.

Middle Ages Brewing (Syracuse, New York) – The Tax Cuts and Jobs Act allowed the company to reinvest in employees and equipment:

"For us it completely went back into the business or reinvested into employees or equipment,” said Isaac Rubenstein, the director of production at Middle Ages Brewing. “It was huge."

Newer breweries have been saving a few thousand dollars a year. Middle Ages has been saving about $20,000, so they're on edge about losing the tax relief.

"It would be devastating,” said Rubenstein. “Plans for next year might have to change, redo the budget a little bit. Some equipment that's on the list might get crossed off. It might be a part time employee. It would be really bad." – Dec. 18, 2019, Spectrum News article.

Mississippi River Distilling Co. (Le Claire, Iowa) – The owners of the distillery said that the Tax Cuts and Jobs Act helped create new jobs:

Both Quint and Ryan Burchett, co-owner of Mississippi River Distilling Co. in Le Claire, said the tax cut — formally called the Craft Beverage Modernization and Tax Reform Act — has helped their businesses add full- and part-time jobs. 

Cedar Ridge currently has 24 full-time and 28 part-time employees and, Quint said, now that he’s “optimistic” the liquor tax cut will be extended, he plans to make two new job offers over the next two weeks.

Burchett said Mississippi River Distilling had three full-time and five part-time employees in 2017, before Congress approved the liquor tax cut as part of the broader Tax Cuts and Jobs Act– Dec. 18, 2019, The Gazette article.

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.

 ….

Mother Earth hired two new employees and bought two Unitanks, stainless steel fermenters, with the tax savings. -- Oct. 19, 2019 Idaho Press Article

Newport Craft Brewing & Distilling (Newport, Rhode Island) – Because of the Tax Cuts and Jobs Act, the company was able to buy new equipment and expand:

"The past two years has seen us invest heavily in the business, hiring people, investing in equipment and expanding. That becomes much more difficult when there's a sudden huge expense," Brent Ryan, co-founder of Newport Craft Brewing & Distilling, said.

"A lot of brewers and distillers were managing through it before two years ago, gradually growing, and when the tax law passed, they were able to say, 'Wow, I can invest even more in my business.' Now, if this doesn't get passed, you're looking at having businesses cut back on hiring and investing and growth." – Dec. 25, 2019, Providence Journal 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

One Coastal Bend (Corpus Christi, Texas) – The tax cut allowed the brewery to create new jobs and buy more equipment:

One Coastal Bend craft beer brewer is breathing a sigh of relief after Congress decided to extend a federal tax cut.

Nueces Brewing Company, co-owned by Brandon Harper, opened back in June with help from the Craft Beverage Modernization and Tax Reform Act. The Reform Act allows breweries a cut in the amount of taxes paid on the first 100,000 proof gallons. A temporary excise tax cut was set to expire on Dec. 31.

Harper said Congress agreed to extend it for another year. Harper will continue to be taxed $7 on every barrel of beer he produces instead of $14.

"The last thing we want to have to do is to raise our prices. We want to be able to keep operating, provide great beer at affordable prices. It's hard for us to compete with the big boys," Harper said.

According to Harper, thanks to that tax cut he can now buy more equipment and hire more people. – Dec. 17, 2019, KIIITV article.

Pig Minds (Machesney Park, Illinois) – Because of the Tax Cuts and Jobs Act, the brewery was able to create new jobs:

Illinois breweries have 26 days until a tax break expires. That's why hundreds of small businesses are coming together to ask congress for an extension.

For Shane Johnson, expanding Pig Minds in Machesney Park is going to make a huge difference in the way it does business.

"We are getting ready to expand our brewing capabilities, add a canning line so we can get a bigger footprint out and keep up with demand. We have a problem with keeping up with demand with two of our beers, especially in the summer time. This is going to alleviate that problem," said Pig Minds General Manager Shane Johnson. 

One way the brewery was able to expand is with a little help saved from the Federal Excise Tax (FET) rate. The Illinois Craft Brewers Guild says since 2017, the tax break has saved breweries money by lowering the cost of barrels from $7 each to $3.50 each. – Dec. 5, 2019, WREX article.

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

Portland Cider Company (Clackamas, Oregon) – Because of the Tax Cuts and Jobs Act, the owner was able to create new jobs and invest in new equipment:

Jeff Parish, Co-Founder of Portland Cider Company and Committee Member of the United States Association of Cider Makers: “As a cider maker, the temporary CBMTRA allowed me to purchase new equipment, hire new staff and grow my business. If the excise tax credits go away, I have to reverse those choices. We're hopeful the permanent version of the bill passes, so we can plan with certainty for a growth-future." – Feb. 6, 2019, U.S. Senate Finance Committee press release.

Portsmouth Brewery (Portsmouth, New Hampshire)  – The founder of the brewery said that the tax cut allowed the company to hire more employees and invest in new equipment:

"For a small brewery like us, we make about 1,000 barrels a year,” said Peter Egelston, founder of Portsmouth Brewery. “So saving $3.50 per barrel, you can do the math, that's about $3,500 in savings. That may not sound like a lot of money, but it is."

The tax cut was set to expire at the end of 2019, but with support from Congress, Trump signed a one-year extension. 

"That's money going back into small businesses, and it's being used to invest in equipment,” said Egelston. “It's being used to hire more people. It's being used in a lot of different ways. That’s a choice each individual business can make. When they get a windfall like a reduced tax rate, they can either keep that money in the business or they can pass it along to the consumer in the form of lower prices."  – Jan. 1, 2020, WMUR article.

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

Red Leg Brewing Company (Colorado Springs, Colorado) – The local brewery was able to use money saved because of the Tax Cuts And Jobs Act and put it towards hiring more people, health insurance for employees, 401(k) contributions for employees, and for production growth:

 

In a matter of days, Red Leg Brewing Company will tap into its next chapter.

The company announced this week it will break ground on an $8 million expansion project Friday along Garden of the Gods Road.

Todd Baldwin, president and founder of Red Leg, told News 5 the move will enable his company to increase its beer output from 2,500 barrels to 10,000.

"Our goal was always to be the craft beer of the military, to be on every military base in the world, and this new facility's going to allow us to do that," Baldwin said.

Red Leg's growth is not only tied to the product and innovative ideals. As a whole, craft brewers have also capitalized on an excise tax break included in President Trump's 2017 tax cuts, reducing what they pay the government for every barrel produced.

That relief allowed brewers to use the money elsewhere. At Red Leg, Baldwin said it paid for production growth, improvements in quality assurance and manpower.

"The last two years, we've invested more in now only our people here, but we were able to start health insurance and a 401(k) this year for our employees, which is super cool. And we were able to bring on more employees," Baldwin said.  – Dec. 10, 2019, NBC Southern Colorado.

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

Russian River Brewing Co. (Windsor, California) – Because of the Tax Cuts and Jobs Act, the owner is planning on using the savings to buy "a freakin' generator."

Russian River Brewing Co. in Windsor would save about $140,000 next year from the federal excise tax break if it produces up to 40,000 barrels, co-owner Natalie Cilurzo said.

“Guess what we will probably spend that on? A freakin’ generator,” Cilurzo said in a text, referencing backup costs incurred from the October PG&E power shut-offs and the possibility the brewery will buy instead of rent a generator for next year’s wildfire season. – Dec. 18, 2019, Sonoma News article.

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

Sprecher Brewing Company (Milwaukee, Wisconsin) – The brewery used savings from the Tax Cuts and Jobs Act to reinvest in the company and create new jobs:

"Other breweries in this area are certainly doing the same thing with the savings they get as we are here," said Jeff Hamilton, president of Sprecher Brewing Company. "This act gave a bit of a tax break to all alcohol producers."

Right now, the team at Sprecher said the money saved from the tax breaks goes back into the business.

"Gives us additional funds that can be reinvested back into the company," Hamilton said. "Back into creating additional products, which on top of that creates new jobs."  Oct. 9, 2019, Fox 9 article.

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

Stillmank Brewery (Green Bay, Wisconsin) – The owner of the brewery said that he was able to use savings from the Tax Cuts and Jobs Act to create new jobs and grow his company:

It did help us,” Brad Stillmank, Owner and Brewer at Stillmank Brewery in Green Bay said, “you know, accelerate our growth to where we are now.”

Stillmank added that his brewery currently produces between 1,500 and 2,000 barrels of beer annually, meaning that with the tax cuts, his business is saving almost $7,000 every year.

He explained that breweries are still taxed in other ways, despite the cut, “We’re still responsible for paying all the other taxes that any other business would have to, this is just a tax that’s above and beyond for our particular business segment.”

....

Stillmank says that over the past two years, he has been able to invest more in his business and the community, evening hiring extra personnel as a result of the tax breaks.

“For the last two years we’ve been doing our best to take advantage of the opportunity that we have had with that,” he explained, “and we have grown our company and we have added employees.”

Without the tax cuts, Scanzello told Local 5 he worries that that kind of growth will falter across the area, including in businesses that supply local breweries.

“Cleaning chemical companies, hop purveyors, or equipment manufacturers are all going to be impacted by anything that’s going to stunt the growth in the industry,” he said. – Dec. 11, 2019,  CBS Green Bay Article.

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 

Streetside Brewery (Cincinnati, Ohio) – Used savings from the Tax Cuts and Jobs Act to hire more employees and buy new equipment:

Garrett Hickey was among those who were feeling relieved as 2020 arrived. He is a co-owner of Streetside Brewery which does 1,200 barrels a year.

Its per barrel tax would have doubled if President Donald Trump had not signed an extension of the federal alcohol tax cut. As a result, Streetside foresees a steady, unimpeded trickle-down flow from the suds.

"Continue to hire new people, continue to buy new equipment, continue to work with charitable places," said Hickey. – January 3, 2020, WLWT5 article.

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 moonshines available online or in person in Gatlinburg.

San Tan Brewing (Chandler, Arizona) – The Tax Cuts and Jobs Act allowed the brewery to put their spirits on the market:

Anthony Canecchia owns San Tan Brewing, a company that produces large quantities of beer and a small amount of distilled spirits.

Canecchia and his team had been experimenting with spirits for a while before they put them on the market. In 2017, considering the tax cut, it seemed like a natural time to start production, he says. San Tan Distilling started selling its spirits, such as Saint Anne's vodka and Sacred Stave whiskey and bourbon, in 2018. – Dec. 20, 2019, The Arizona Republic article.

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 Beer Shop Co. (Tempe, Arizona) – Because of the Tax Cuts and Jobs Act, the owner was able to open his business and create jobs:

Dylan DeMiguel is a partner at the The Shop Beer Co. in Tempe. 

Originally he thought he’d head to law school, but it turns out his entrepreneurial spirit drew him into the booze business. 

It's booming, he says, thanks in part to a tax break that went into effect in 2018.

“We’re taking this money to fuel the growth of this company. We’re literally hiring people,” DeMiguel said. “We’re buying equipment. And we’re investing in our community.” – Dec. 8, 2019, KPNX 12 News article.

Thomas Hooker Brewery (Bloomfield, Connecticut) – The brewery used savings from the tax cut to expand the business and create new jobs:

U.S. Senator Richard Blumenthal of Connecticut says a federal tax credit for small-scale breweries, distilleries and wineries has helped create jobs in Connecticut.

The tax credit for small scale alcohol producers was initially part of the 2017 Trump tax cut. It’s been extended in the bipartisan federal budget passed by Congress last month. Blumenthal says he opposed Trump’s tax cuts to big business, but this particular tax cut is for small businesses and is a job creator.

“These craft breweries put the savings back into their businesses. They create jobs. They produce more beer. They meet demand. And they provide good value.”

Blumenthal spoke at Thomas Hooker Brewery in Bloomfield. Brewery owner Curt Cameron agrees that he’s putting 100% of his tax cut back into his business, “in our case a brand-new pizza kitchen, which is an offshoot of our existing business. It will create at least seven jobs immediately.”

If the tax break had not been extended, craft breweries like Thomas Hooker would have faced a federal excise tax increase of 400% this year. – Dec. 31, 2019, WSHU article.

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.

The Raleigh Rum Company (Raleigh, North Carolina) – The rum company was able to reinvest in the business because of the Tax Cuts and Jobs Act:

The Raleigh Rum Company got its start back in 2014. 

“The Raleigh Rum Company was actually started by three of us. We’re actually friends from high school. We went to Apex High in the area and we actually were just really inspired by the awesome craft beer that was in the area,” Matt Grossman, Co-Founder said.

Both local businesses helped by the Craft Beverage Modernization and Tax Reform Act that Congress passed back in 2017.

It lowered the federal excise tax from $13.50 per proof gallon to $2.70. Per bottle, the tax went down from $2.14 to 43 cents. 

“That was a big impact for us. We were able to kinda reinvest into our business. Operate our equipment a little bit. We were definitely planning on making some hires here pretty soon,” Grossman said. – Dec. 17, 2019, CBS 17 article.

Trail Distilling (Oregon City, Oregon) – The distillery was able to hire more employees and invest in new equipment because of the Tax Cuts and Jobs Act:

“It allowed us to put that savings back into our distillery,” Sara Brennan, co-owner of Oregon City’s Trail Distilling told KOIN 6 in September. “It allowed us to hire more people for sales … (and) invest in more equipment so we can distill more product.” – Dec. 15, 2019, KOIN 6 article.

Twisted Path (Milwaukee, Wisconsin) – Because of the Tax Cuts and Jobs Act, the business is planning on hiring new employees:

With less than 20 days until the Craft Beverage Modernization and Tax Reform Act expires, local craft distillers are getting nervous. Brian Sammons, owner of Twisted Path Distillery in Milwaukee's Bay View area and president of the Wisconsin Distillers Guild, said the last few weeks have been scary for him and his small craft business.

"It's goofy to have this much business uncertainty just hanging in the balance," Sammons said.

…..

Sammons only has two full-time employees and four part-time. He is waiting to hire a full-time sales and marketing person because of the act's uncertain future.

Local distillers such as Sammons points to the political distractions in the House and Senate as a reason for the act's idleness. The act is bipartisan with 326 co-sponsors in the House and 73 co-sponsors in the Senate, more than three-quarters representation in each chamber. – Dec. 16, 2019, Milwaukee Business Journal article.

Warped Wing Brewing Co. (Dayton, Ohio)  – The brewery plans to use savings from the tax cut to give raises to employees and buy new equipment:

“It’s a big deal for most of the breweries in Southwest Ohio,” said John Haggerty, co-owner of Warped Wing Brewing Co. in downtown Dayton.

Without the tax cut, beer brewers and most alcoholic-beverage producers would have been looking at a higher tax bill the second week in January. The tax cut also reduced the amount that distilleries paid on the first 100,000 proof gallons from $13.50 to $2.70 per gallon. A proof gallon is a gallon of spirits at 50 percent alcohol.

“We’ve been waiting for this. We planned for it to go up in our strategic budgeting for next year, but it’s hard because it affects decisions like giving raises to employees, buying new equipment, future bank loans and ultimately the price beer drinkers would have to pay. – Dec. 30. 2019, Dayton Daily News article.

Wibby Brewing (Longmont, Colorado) – Because of the Tax Cuts and Jobs Act, the brewing company was able to expand:

“We are so thankful that Congress has extended the current federal excise tax rates for another year,” said Ryan Wibby, president and brewmaster, Wibby Brewing, Longmont, Colo. “When preparing the 2020 budget, I was struggling to find the capital needed for the expansion of our growing brewery. The extension of the FET rates will free up $20,000, which will allow us to purchase the production equipment necessary to meet our projections and achieve our goals.” – Dec. 23, 2019, Wine Industry Advisor 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

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Thursday, December 5th, 2019, 9:00 PM PERMALINK

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.
       

“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


Washington Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Thursday, December 5th, 2019, 3:45 PM PERMALINK

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  

Fremont Brewing (Seattle, Washington) – The Tax Cuts and Jobs Act allowed the company to expand healthcare benefits to employees' dependents: 

In 2017, Congress passed a tax cut for breweries, distillers, and wineries. Nelson said that allowed them to invest in additional employee benefits, like extending health benefits to employees’ dependents.

“We've got young people that are getting married and having families, and they are needing benefits,” she said. “So we decided that we would extend health benefits to the dependents of those families.” – Dec. 18, 2019, KIRO article.

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

Utility Trench Technologies (Spokane, Washington) – The company was able to invest in its community because of the Tax Cuts and Jobs Act:

Tax reform is twofold for our small business because the 20 percent deduction allows us greater revenues without additional tax liabilities—of at least 20 percent—and in turn we will spend that extra revenue locally,” Angela Gibson, owner of Utility Trench Technologies based in Spokane, Washington, said in the survey. “This tax reform helps our customers also.” – March 23, 2018, NFIB article.

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

There are no related posts.


Virginia Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Thursday, December 5th, 2019, 11:00 AM PERMALINK

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

 


Alabama Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Thursday, December 5th, 2019, 8:00 AM PERMALINK

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 Alabama. (Additions to this list can be sent to jkartch@atr.org)

Overseas Hardwoods Company (Stockton, Alabama) -- $1,000 tax reform bonuses to employees.

Sabel Steel (Montgomery, Alabama) - Expanding facilities, hiring new employees, pay increases for current employees:

Montgomery, Alabama’s, Sabel Steel is investing heavily in expanding its facilities—which means new jobs, new investment and large pay raises for most of its 230 employees across the South.

“When you’re a business, there are a lot of things to consider,” said Keith Sabel, president and CEO of Sabel Steel. “Taxes are a large part of it.”

Because the tax rate for companies like Sabel Steel—a family-owned steel distributor—has been lowered under tax reform, Sabel is able to maximize the benefits for his company.

First on the list? Rewarding the employees who work hard every day to make Sabel Steel successful.

“We gave a raise to everyone across the board,” said Sabel. “We improved everyone’s pay. We have incentives for as many workers as possible. If they meet or beat expectations, we’re making sure they’re rewarded.”

“We have quality perks,” Sabel added. “Good insurance. Good benefits. We’re constantly trying to improve, and now we’re able to. Morale is very good. We’re a family business, and we run it like a family business—where we take the time to get to know people, their families. I try to look out for my employees all the time.”

But Sabel Steel’s current employees aren’t the only ones who will benefit from tax reform and the booming economy. Sabel Steel also plans to reinvest its tax reform savings in its business by expanding and upgrading facilities in Newnan, Georgia, and Baton Rouge, Louisiana, and adding new equipment that will make its facilities more productive and innovative. Sabel also cites a new plasma machine it purchased for its plant in Theodore, Alabama—a machine that offers smoother and more efficient steel-cutting techniques. It also plans to make further upgrades to its equipment as needed.

To staff the expanded and upgraded facilities, Sabel Steel plans to hire more workers. Its recruitment effort focuses on talent, passion and integrity because Sabel Steel knows that, by starting with solid employees, it can train them on-site and equip them with the skills to do the jobs that the company needs. - July 11, 2018,  National Association of Manufacturers article excerpt

Cogent Building Group (Point Clear, Alabama) – $2,000 bonuses for all four employees.

American Proteins Inc. (Hanceville, Alabama)— $1,000 bonuses:

American Proteins Inc. based in Cumming has 700 employees at its operations in Georgia and Alabama. It announced it would give employees $1,000 bonuses "in response to the tax reform package signed into law earlier this year."

"President Donald Trump and the Republican Congress have reduced taxes for businesses and individuals and I'm excited what this means for our company and its employees," American Proteins Inc. Chairman Tommy Bagwell said in a statement Feb. 5.” Feb. 26 2018, Atlanta Business Chronicle article excerpt

Otelco (Oneonta, Alabama) — $500 bonuses for all employees:

The Tax Cut and Jobs Act, enacted in December 2017, affects Otelco’s taxes in 2017, as well as future tax years. Bonus depreciation was increased from 50% to 100%, beginning in 2017, with the Company realizing a benefit of over $0.6 million in fourth quarter 2017. The reduced maximum tax rate has also lowered the Company’s deferred tax liabilities and is reflected in an income tax benefit, raising net income for the quarter and year. “We recently announced to our employees that everyone would be receiving a special bonus of $500,” commented Rob Souza, President and CEO of Otelco. “Coupled with the lower tax withholding rate that most employees should experience, everyone should start 2018 with more take home pay. — March 5, 2018 Otelco statement

Alabama Power (Birmingham, Alabama) – The utility is passing along tax savings to customers:

Alabama Power Company customers will see a reduction in their bills because of the federal income tax cut approved by Congress last year, the Public Service Commission announced at its monthly meeting today.

The reduction in 2018 will be for $257 million, about a 9 percent cut, the PSC said.

The cut requires no action by the PSC, which regulates Alabama Power.

The reduction takes effect in July and continues through December.

The Tax Cuts and Jobs Act, signed into law in December, reduced the federal corporate income tax rate from 35 percent to 21 percent effective Jan. 1, 2018.

The three commissioners, all Republicans, said it was good to see consumers benefit from the tax cuts promoted and signed into law by President Trump.

"This is a great day for Alabama consumers and taxpayers," Commission President Twinkle Andress Cavanaugh said.

The commission approved two requests from Alabama Power related to the income tax cut.

One would allow the company to apply up to $30 million of excess federal deferred income taxes this year to Energy Cost Recovery, a factor in rate-setting.

The other request from Alabama Power was to make several changes to the PSC's method of setting rates, called Rate Stabilization and Equalization, or RSE. The PSC said the changes would enable Alabama Power "to mitigate the credit quality impacts" resulting from the Tax Cuts and Jobs Act and preserve rate stability for customers. The changes would allow Alabama Power to increase the equity share of its capital investment, the PSC said.

In conjunction with that second request, Alabama Power committed to no increases in its base rates through 2020 and to credit customers $50 million next year, the PSC said. – May 1, 2018 AL.com article excerpt

Protective Life Corporation (Birmingham, Alabama) -- Base wage raised to $15 per hour; $1,000 bonuses for 75% of employees:

Recognizing the benefits it will receive as a result of the recent passage of federal tax reform, Protective has committed to:

Russell Lands (Alexander City, Alabama) -- $500 bonuses for about 400 full-time non-management staff:

Russell Lands, the largest lakeside residential developer in the state, has given full-time employees a $500 check.

“We are thrilled that our company is strong, the economy is good, and that our national leaders recently approved a tax plan that should be very positive for all of us,” said Chairman Ben Russell. “This is a token of the company’s, and my personal, genuine appreciation for what our folks have done to make Russell Lands such a great company. It’s because of our employees’ efforts that we have been able to accomplish so much."

Non-management-level employees who had been with the company since July 1 were given the checks this week – almost 400 in all. – Jan. 12 2018, Birmingham Business Journal article excerpt

Great Southern Wood Preserving, Inc. (Abbeville, Alabama) -- Significantly increased employee benefits: lower healthcare costs, more paid time off, scholarships, and more:

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

Regions Financial Corporation (Birmingham, Alabama) – base wage increase to $15 per hour; $40 million in charitable donations; $100 million in capital expenditures:

“Regions is making these investments in anticipation of the savings it will recognize as a result of federal tax reform intended to support economic growth.” – Regions Financial Corporation press release

DTI Partners Inc. (Mobile, Alabama) -- $1,000 bonus to full-time employees; $300 bonus to part-time employees:

“The tax bill was the primary reason we were able to do this as a company. The bonuses were a great morale booster.  We are a very small company but we believe this will help us grow in the long run.” -- Message from CEO Tom Busby

Xante Corporation (Mobile, Alabama) -- $1,200 bonuses:

Mobile-based Xante Corp. handed out $1,200 bonus checks to most of its employees on Monday, as its CEO gave thanks to a Republican tax reform bill and Rep. Bradley Byrne.

Xante provides high-end printers and related software for use by professional graphics and printing operations. It employs a little over 100 people in Mobile and about 15 more in Europe. CEO Robert Ross said Monday that anyone who'd been with the company for a year or more was getting a $1,200 bonus, while those employed less than a year were getting a different amount.

Mobile employees whooped and cheered as Ross announced the windfall Monday morning. They also heard Ross explain that the company had additional plans for money saved as a result of tax cuts passed by Congress and signed into law by President Donald Trump in December. Among other changes, the tax bill significantly lowered the corporate tax rate. – Feb. 19, 2018 AL.com article excerpt

T.J. Maxx – 25 stores in Alabama – 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

  • 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

AT&T -- 5,071 Alabama-based AT&T employees received $1,000 bonuses. The company also announced a $1 billion increase in nationwide capital expenditures.

Walmart – 144 retail locations in Alabama -- Over 22,000 Alabama-based Walmart and Sam's Club employees are receiving wage increases as well as tax reform bonuses ranging from $200 - $1,000 for a state total of $37,111,483. 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.

Apple (Apple store locations in Birmingham and Huntsville) -- Alabama-based Apple employees received $2,500 bonuses in the form of restricted stock unitsNationally, $30 billion in additional capital expenditures; 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.

BancorpSouth Bank (30 branch locations in Alabama) – pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees: 

BancorpSouth Bank 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

-----------------------

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

Home Depot -- 28 locations in Alabama, bonuses for all hourly employees, up to $1,000:

"This incremental investment in our associates was made possible by the new tax reform bill." -- Jan. 25, 2018 Home Depot press release

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

Comcast (Multiple locations in Alabama) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.

Chipotle Mexican Grill (Multiple locations in Alabama) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Ryder (Seventeen locations in Alabama) -- Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in Alabama) – $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 Alabama) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Wells Fargo – 125 bank locations in Alabama; 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.

Note: If you know of other Alabama examples, please email John Kartch at jkartch@atr.org

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

Photo Credit: BRivey/Flickr

More from Americans for Tax Reform


Pages

×