John Kartch

Florida Examples of Tax Reform Good News

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Posted by John Kartch on Tuesday, April 23rd, 2019, 10:30 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 Florida. (Additions to this list can be sent to jkartch@atr.org)

Magellan Transport Logistics (Jacksonville, Florida) - Expanding facility operations, hiring more employees:

“Just last month, Mr. Speaker, I toured Magellan Transport Logistics, a service-disabled, veteran-owned logistics company in my hometown of Jacksonville, Florida. They are adding at least 100 new jobs in the next 5 years and were able to acquire a new 47,000- square-foot facility. During the tour of the facility, we were told by the company’s CEO that this expansion is a direct result of the tax cuts that the business received from the Tax Cuts & Jobs Act. This is just one example of the differences that these cuts are making to improve the way of life for countless Americans in Florida and across the Nation. I have heard from many small businesses throughout my district who are thriving unlike never before because of these landmark reforms.” - May 17, 2018, Rep. John Rutherford statement on U.S. House Floor

Florida Concrete Unlimited (Miami, Florida) – Pay raises for all employees and higher year-end bonuses due to tax reform:

“My father and I decided, once this tax bill passed, the first thing that we should do is reinvest in the company. So we have extra cash available to give back to the employees instantly before we even felt the effects of the tax bill, we increased the bonuses for the year-end. So everybody got a little bit more in their paycheck at the end of the year for their Christmas bonus, about 20 percent more. And everybody got a raise based on tax reform.” – Feb. 2018 statement by President and COO Jason Goff

Don Ramon Restaurant (West Palm Beach Florida) -- The Cuban restaurant gave bonuses and pay raises and in addition to installing new coffee machines and refrigerators will renovate and expand:

As the owner of Don Ramon Restaurant in West Palm Beach, I know the positive impact of small business better than most.

Because of the recently passed Tax Cuts and Jobs Act, we will pay lower taxes and qualify for higher deductions, leaving Don Ramon in a better position than ever before. We plan to open a takeout window and set up a customer bar, which would generate up to eight new jobs. We will also install new refrigerators and coffee machines, in addition to making much-needed renovations to better serve our customers.

Perhaps most important, all of our key employees received generous bonuses in December, and they will also see pay increases in the coming weeks. We take great pride in rewarding our workers, and the new tax code makes it much easier to do so. -- Feb. 3, 2018 Palm Beach Post op-ed excerpt

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

Benada Aluminum Products LLC. (Sanford, Florida) - Increased production capacity:

“It’s given us relief. We’re able to get some margins back,” said Jim Piperato, president of Benada Aluminum LLC, a Florida-based producer of aluminum framing for patio and pool enclosures.

Mr. Piperato said the company, owned by private equity firms Big Shoulders Capital and ABGB Capital, recently increased production capacity by 50% to expand into the door and window frame market.

“Our business has been extremely strong.” he said. “Most of the customers I’ve spoken to say there’s no end in sight.” - July 17, 2018, Wall Street Journal article excerpt

Our Town America (Clearwater, Florida) – Raise wages, hire new employees, and purchase new equipment:

There's no small business owner I talk to who isn't thankful to be able to protect one-fifth of his or her earnings from taxes. For some marginal small businesses, it will make the difference between staying in business and closing.

My business is no different. We're using our tax cut savings to raise wages, hire new staff, and add even more features and equipment to our brand new headquarters — a 44,000 square foot office building in Clearwater. – April 29, 2018, Tallahassee Democrat article 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

Darden Restaurants (Orlando, Florida) - workforce investments:

Olive Garden owner Darden Restaurants on Monday said it would reinvest $20 million in tax savings this year back into its workforce.
 

The Orlando, Fla.-based casual-dining operator said that tax reform would lower its effective tax rate by 600 basis points in its current fiscal year, due to changes made under the Tax Cuts and Jobs Act passed in December.

--

“One of the best investments we can make is in our people,” Darden CEO Gene Lee said in a statement. “This investment will strengthen one of our most important competitive advantages.” - March 15, 2019 Restaurant Business Online article excerpts

 

Massage Envy (locations across Florida) - Increased worker pay and facilities remodeling:

“I’m a manager and a massage therapist at Massage Envy. My employers own seven of Massage Envys. So for me I guess what they’ve done is what’s affected me most. They’ve really reinvested into the company. We’ve got a total overhaul remodel of everything top to bottom, front to back and that’s been great for business. They have given every single person in our clinic an increase in compensation and just have changed the quality of our lives greatly. I mean in the last three years I’ve doubled my salary with what they’ve been able to do and so personally for me how that translates into my life is that you know both of my kids have their own cars so they can drive and I don’t have to share a car with them. I’m able to finish an internship that I’ve been doing in mental health counseling. I had finished my academic requirements a year ago and just couldn’t take off work to finish the internship. I’m in it and I’ll be done in October and I’m not losing any money and not losing any time with my children or anything like that. So it’s been pretty awesome for me. I appreciate it a lot. I know my employers do as well.” - April 17, 2018 Tax Talk Roundtable, Kasey Moore, Manager at Massage Envy

 

Arthrex Inc. (North Naples, Florida) – Pay raises and $1,000 bonuses:

The company has given all of its U.S. employees either a $1 an hour pay increase or a one-time bonus of $1,000.

In the news release, Schmieding attributed the decision to boost pay for U.S. workers in part to the passage of the Tax Cuts and Jobs Act, which lowered the federal corporate income tax rate and to the deferral of the medical device tax for the next two years nationwide. -- April 27, 2018 Naples Daily News article excerpt

Landmark Reporting, Inc.  (Orlando, Florida) — $500 bonus checks for all three employees:

“I own a small business in Orlando, Florida with three employees. It is a business that I DID BUILD and have owned and operated for over 35 years. After I saw the increase in take-home pay in all of our paychecks after President Trump’s tax cut implementation, I wrote bonus checks of $500 each to my employees. On the Memo line, it’s labeled 'President Trump Tax Cut Bonus.’ — Candy Morgan, owner, Landmark Reporting, Inc.

Crowley Maritime Corporation (Jacksonville, Florida) - Employee bonuses:

Hill, a Crowley employee for more than 24 years, extolled real-world benefits of the tax cuts, including helping her pay for her sons’ college expenses.

Crowley Maritime “used its benefit from tax reform to pay employees bonuses,” Hill said.

“Crowley Maritime is a fantastic company,” she added. “I’ve been there 24 years. I’m very honored to work for such a great company and for the company to benefit from such a great tax opportunity, which they were able to give back to the employees.” - May 29, 2018, Florida Politics article excerpt

Liberty Landscape Supply (Jacksonville, Florida) - Expanding operations and services offered to customers, hiring a new employee:

Mike Zaffaroni calls the newest piece of equipment at his landscaping company in Jacksonville, Florida, his “Tax Cut Truck.”

He had long wanted to expand the services he offers to his customers and says the tax cuts President Donald J. Trump signed into law six months ago were the motivation he needed to buy the $80,000 truck and forklift.

“Without the tax cuts, we’re not so sure it would have been the right move for us financially,” he said.

Under the new tax law, Mr. Zaffaroni will be able to write off the entire cost of the purchase this year. Along with the lower tax rates and other benefits of the law, he says his accountant estimates he’ll save 7 percent to 10 percent on his taxes this year. That’s a big saving for a small company like his, and it’s money he’ll reinvest in his business.

“We’re going to be able to expand, we’re going to add a product line, we’ll be able to deliver more materials than we were able to before,” Mr. Zaffaroni said. “We’ve actually already hired another driver, so that also adds another job.”

I toured Mr. Zaffaroni’s company, Liberty Landscape Supply, soon after he was named Florida’s National Small Business Person of the Year, and just days after the truck was delivered.

“It makes it very real,” he told me. “A lot of America doesn’t really understand the implication these tax cuts have on each individual small business.” - June 29, 2018, White House article excerpt

 

Primrose School of South Tampa (Tampa, Florida) – Salary increases; playground upgrades; educational hardware and software investments; upgraded classroom flooring:

“Primrose School of South Tampa joined the ranks of other companies in giving back to our employees as a direct result of the tax reform.  We are an educational preschool providing a premier early education and child care experience for children and families in the Tampa Bay area.  Located in Tampa, Florida, we employ 85 teachers and management staff.   Thanks to the Tax Cuts and Jobs Act passed by the Republican Congress and signed into law by President Trump, each of our full-time staff members will receive a $1,040 salary increase and our part-time employees will receive one-half of that amount.  We will invest over $75,000 in turf to improve our playgrounds for our children. We purchased 50 new Apple iPads and software for classroom/student use, and we are investing in upgraded classroom flooring. Our total infrastructure investment in our beautiful school is over $150,000 thanks to President Trump and the Republican Congress!  This would not have been possible but for the tax reform and our sincerest thanks go to President Trump and to Congress for passing this legislation. President Donald Trump is doing a great job and we appreciate the hard work on his aggressive agenda.” – Jana Radtke, Franchise Owner, Primrose School of South Tampa

Jones Auto & Towing (Riverview, Florida) – the company, which provides 24-hour wrecker service, roadside assistance, emergency towing, and fuel delivery etc. will put two additional trucks into service, which will add two more full time jobs:

“The tax cuts are putting two more tow trucks on the road for my business. This will add two more full time job openings that will help two more families. And it will put a little more money in the bank for my family. My wife is a registered nurse and has a 401k which is doing better this last year than in the previous 13 years!!

Thanks to President Trump!!!

Thankfully I will be taken delivery of my new trucks in two weeks and hitting the road! MAGA!” – Guy Jones, Jones Auto & Towing

Joseph’s Lite Cookies (Sebastian, Florida) – $3,000 - $4,200 salary increases, new computer systems, new product packaging:

"As the president and CEO of Joseph’s Lite Cookies in Florida, I run a family-owned, sugar-free cookie business. We bake more than 12 million sugar-free cookies a day, in addition to supplying other diabetic-friendly products.

I employ numerous workers who stand to directly benefit from the Republican tax overhaul. Why? Because lower rates and increased deductions leave me with more resources to expand business operations and reward hardworking staffers.

Because of the tax bill, I’m purchasing new computer systems and creating new product packaging for international expansion. More importantly, I’m giving raises to four key employees — half of our workforce — which range from just over $3,000 to nearly $4,200. My top employees have earned greater financial security, and the Republican tax package made it a reality for them.

Because of President Trump’s commitment to lowering rates and increasing deductions, we are now experiencing the largest tax-induced investment revolution ever. Never before have we seen such a frenzy of pay hikes, 401(k) increases, and bonuses due to a single piece of legislation. Democrats scoff at their own peril. – Feb. 5 2018, Washington Examiner news article excerpt

Cogent Building Group -- the firm builds homes in Santa Rosa Beach, and gave $2,000 bonuses for all four employees.

Tampa Electric (Tampa, Florida) – The utility is passing tax reform savings to customers:

Tampa Electric bills won’t rise to pay for Hurricane Irma restoration costs, thanks to new tax savings. The Florida Public Service Commission (PSC) unanimously approved the measure today.

Because of recent changes made to the federal tax law, customers will directly benefit. What Tampa Electric would have paid in corporate income taxes will instead be used to cover the cost of restoring power after Hurricane Irma and several other earlier named storms. Additionally, Tampa Electric bills will reflect the ongoing benefits from tax reform starting in 2019. – March 1, 2018, Tampa Electric Press Release

Duke Energy Florida (St. Petersburg, Florida) – the utility will pass along tax savings to customers:

Duke Energy Florida today announced that customers will directly benefit from the new federal tax law and avoid a rate increase for power restoration costs associated with the company's response to last September's Hurricane Irma.

Instead of increasing customer rates, the company plans to apply federal tax reform savings toward those storm costs.

On Dec. 28, 2017, the company had filed for recovery of $513 million – $381 million for power restoration costs and $132 million to replenish the storm reserve fund. Residential customers would have seen an increase of $5.20 per 1,000 kWh of electricity on a typical monthly bill over a three-year recovery period – an average of $187.20. Commercial and industrial customers were expected to see an increase of approximately 2.5 to 6.6 percent, though bills would have varied depending on a number of factors.

Like many companies, Duke Energy has been working to analyze the benefits of tax reform.

"We are pleased that this solution will prevent a rate increase for our customers," said Harry Sideris, Duke Energy Florida state president. "Hurricane Irma was the worst storm to ever hit Duke Energy Florida and impacted many lives. Redirecting the tax reform savings against the storm costs ensures that our customers will reap the benefits of this new law." -- Jan. 24, 2018 Duke Energy Florida press release

Harris Corporation (Melbourne, Florida) -- Each of the 17,000 non-executive employees will receive 10 shares of common stock which will vest over two years. 10 shares of stock is currently worth $1,470; an additional $300 million contribution to employee pension fund; $20 million in innovation investments:

Harris Corporation (NYSE:HRS) today announced that, as a result of the passage of the tax reform bill, the company anticipates making an additional contribution to its employee pension fund, increasing its investment in research and development, and providing a one-time stock grant to all of its non-executive employees. The actions are expected to occur within the company’s fiscal 2018.

To increase current and former employee retirement stability, Harris anticipates contributing an additional $300 million into the company’s employee pension fund.

The company also will invest an incremental $20 million in technologies to accelerate innovation and affordability initiatives for its customers. This investment in research and development will leverage and enhance the company’s strong engineering talent, strengthen Harris’ position and help it capture new market opportunities in areas such as small satellites, software defined electronic warfare systems, open systems avionics, robotics and air traffic management solutions.

In addition, the company will grant each of its approximately 17,000 non-executive employees 10 shares of Harris common stock that will vest over two years. The grants have a current market value of about $1,470 each, or approximately $24 million in total.

“We are pleased to share the benefits of our strong performance and the recent tax reform legislation with our employees,” said William M. Brown, chairman, president and chief executive officer. “This represents an investment in Harris’ greatest asset and differentiator – our talented employees. Coupled with our innovation and technology investment, we are using this opportunity to further strengthen the company and position Harris for future success.” -- Jan. 30, 2018 Harris Corporation press release

T.J. Maxx91 stores in Florida – 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

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

Ryder (Headquartered in Miami, multiple retail locations in Florida) – Tax reform bonuses for all non-incentive bonus eligible employees, totaling $23 million:

In connection with the anticipated benefit of the Tax Act, the Company awarded a one-time cash bonus, estimated to be approximately $23 million or $0.27 per diluted share, to all non-incentive bonus eligible employees of the Company employed on December 31, 2017. The bonus will be paid to eligible employees in February 2018. -- Jan. 29, 2018 Ryder System, Inc. filing

RGF Environmental Group, Inc. (Riviera Beach, Florida) -- $1,000 bonuses:

“We, as a privately held manufacturing firm in Riviera Beach, Florida, will benefit greatly from the Tax Reform act recently passed. Because of this savings, we have given all our employees a $1,000 Bonus (This is in addition to their 2017 year-end bonuses. – Sharon B. Rinehimer, Executive Vice President/General Counsel, RGF Environmental Group, Inc.

Spellex Corporation (Tampa, Florida) -- $1,000 bonuses for all 26 full-time employees:

"I'm the founder and CEO of Spellex Corporation located in Tampa, FL. We're a software development company which I founded in 1988. This is the first time I've done anything like this. I'm hoping there are thousands of companies like mine who gave their employees $1,000 bonuses to show our support for the new tax plan which will ultimately help the middle class." -- Sheldon Wolf, CEO, Spellex Corporation

The Flood Insurance Agency (Gainesville, Florida) -- $1,000 bonuses for 17 full time employees:

“Small businesses represent almost 75% of all jobs in the USA and the new tax laws benefit many those businesses. Their allocation of additional after tax income could be what causes a wave to turn into a tsunami of economic growth that moves the USA to a destiny defined by everyone’s hopes and dreams. 

My hope is that our insurance industry leads the way with both large public insurance corporations and small insurance agencies announcing their plans for leveraging their tax savings toward a bright American future. My hope is that news media does their part by reporting every announcement building awareness of the growing tsunami. 

I want our company to participate in that tsunami. I want our employees to help define that destiny. Our company is a mid-size insurance MGA with approximately $15 million of revenue. On Tuesday December 26th we announced a $1000 bonus for all our full time employees.” – CEO Evan Hecht

CenterState Bank (Davenport, Florida) – $1,000 bonuses to non-officer employees:

CenterState also finds itself competing more with major regional banks for customers and employees, so — following in the footsteps of other leading financial institutions — it is giving $1,000 bonuses to its non-officer employees as a result of the new tax law. About 700 workers, or 60 percent of the company’s employees as of Dec. 31, will receive the bonus, CenterState said in a Jan. 19 filing with the U.S. Securities and Exchange Commission. – Jan. 19 Tampa Bay Business Journal article excerpt

AT&T -- $1,000 bonuses to 13,331 Florida employees; Nationwide, $1 billion increase in capital expenditures.

Fleet Advantage (Fort Lauderdale, Florida) – New options for customers thanks to immediate business expensing in the tax bill:

The changes to the tax law for 2018 as a result of Tax Cuts and Job Act of 2017 have led more fleets to consider vehicle leasing, and many of those are smaller fleets and owner-operators who may have only sought out equipment on the used market previously.

James C. Griffin Jr., COO & CTO of Fleet Advantage, said the company has launched new flexible leasing programs in response to the tax changes to help fleets achieve more balance-sheet benefits.

“We got ahead of the tax changes and have some new lease products that take advantage of the tax changes,” Griffin said. Leases now hit the balance sheet at “net present value,” he said.

In addition to the depreciation aspect of the tax plan, Griffin said the flat 21% tax on corporations has also allowed Fleet Advantage to “do a little more predictable planning for our customers.

“A lot of organizations are looking at this as an opportunity to upgrade their fleets,” he noted. “[And] our model is really starting to resonate, so we’ve seen a huge uptick [in business].”April 30, 2018 FreightWaves article excerpt

Apple (18 Apple store locations in Florida: Altamonte Springs, Aventura, Boca Raton, Brandon, Estero, Fort Lauderdale, Jacksonville, Miami Beach, Miami Brickell City Centre, Miami Dadeland, Miami The Falls, Naples, Orlando Florida Mall, Orlando Millenia, Palm Beach Gardens, Sarasota, Tampa, Wellington) --

$2,500 employee bonuses in the form of restricted stock units; $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:

     Bonuses:

Apple Inc. told employees Wednesday that it’s issuing a bonus of $2,500 worth of restricted stock units, following the introduction of the new U.S. tax law, according to people familiar with the matter.

The iPhone maker will begin issuing stock grants to most employees worldwide in the coming months, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The move comes on the same day Apple said it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years, funding an additional technical support campus, data centers and 20,000 new employees.

Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday. – Jan. 17 2018, Bloomberg News article excerpt

     Capital expenditures, etc:

Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one.

Building on the initial success of the Advanced Manufacturing Fund announced last spring, Apple is increasing the size of the fund from $1 billion to $5 billion. The fund was established to support innovation among American manufacturers and help others establish a presence in the US. It is already backing projects with leading manufacturers in Kentucky and rural Texas.

Apple works with over 9,000 American suppliers — large and small businesses in all 50 states — and each of Apple’s core products relies on parts or materials made in the US or provided by US-based suppliers.

Apple, which has a 40-year history in education, also plans to accelerate its efforts across the US in support of coding education as well as programs focused on Science, Technology, Engineering, Arts and Math (STEAM). – Jan. 17, 2018 Apple press release excerpts

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

Walmart -- 67,500 Floridians employed at 328 Walmart stores will receive tax reform bonuses and wage increases and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

Lowes 21,000 employees at 123 stores and two distribution centers in Florida. Employees will receive bonuses of up to $1,000 based on length of service, expanded benefits and maternity/parental leave; and $5,000 of adoption assistance.

Home Depot -- 153 locations in Florida, Florida-based Home Depot employees will receive bonuses of up to $1,000.

Starbucks Coffee Company -- (Multiple locations in Florida) -- $500 stock grants for all Starbucks retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants, totaling more than $100 million nationwide in stock grants; 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 Florida) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Bank of America -- (Multiple locations in Florida) Florida-based employees of Bank of America will receive $1,000 bonuses.

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

FifthThird Bancorp150 locations in Florida; $1,000 bonuses; base wage will increase to $15 per hour.

Wells Fargo -- 614 bank locations in Florida -- Base wage raised from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over next three years. 

Walt Disney Company -- Florida-based Disney employees will receive $1,000 bonuses and benefit from the nationwide $50 million investment in employee education programs.

Note: If you know of other Florida 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


Timeline: Carbon Tax Consistently Rejected By Voters

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Posted by John Kartch on Wednesday, April 17th, 2019, 10:30 AM PERMALINK

 

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.

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.

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.

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.

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 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.

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.”

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.

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.

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.”

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

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."

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.

November 2, 2010 -- South Carolina voters oust carbon-tax supporting congressman Bob Inglis in 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.

Photo Credit: goandgo


Canadian Voters Say Hell No to Carbon Tax in Historic Election

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Posted by John Kartch on Wednesday, April 17th, 2019, 12:07 AM PERMALINK

Warning to U.S. politicians pushing a carbon tax: "Even dressing it up and trying to bribe taxpayers with rebate cheques didn't work."

In a historic election today in Canada, Alberta voters rejected carbon taxes at the ballot box. The Premier of Alberta – carbon tax supporter Rachel Notley – was thoroughly defeated by the anti-carbon tax Jason Kenney and his United Conservative Party. It is the latest in a long line of defeats for carbon tax pushing politicians around the world, as documented in this Americans for Tax Reform timeline.

Kenney’s first order of business: repeal the carbon tax.

In a statement to ATR, the leader of Canada’s top taxpayer group said:

“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.

Timeline: Carbon Tax Consistently Rejected by Voters

 

Photo Credit: pblakez - Flickr


NYT: “Most people got a tax cut.”

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Posted by John Kartch on Monday, April 15th, 2019, 11:56 AM PERMALINK

NYT: “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.”

Today the New York Times finally noted the following regarding the Tax Cuts and Jobs Act:

“Most people got a tax cut.”

NYT excerpt:Experts are divided on whether the tax law was a good idea. But there is little disagreement on this core point: Most people got a tax cut.”

There was a “sustained – and misleading – effort” by the Left to lie about the tax cuts.

NYT excerpt: 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.”

Even a left-wing tax group “found that every income group in every state would pay less on average under the law in 2019.”

NYT excerpt: The Joint Committee on Taxation — Congress’s nonpartisan team of tax analysts — found that every income group would see a tax cut on average. So did the Institute on Taxation and Economic Policy, a left-leaning think tank that was sharply critical of the law. In fact, that group went even further: In a December 2017 analysis, it found that every income group in every state would pay less on average under the law in 2019.”

H&R Block: “The vast majority of people did get a tax cut.”

NYT excerpt: “The vast majority of people did get a tax cut,” said Nathan Rigney, an analyst at H&R Block’s Tax Institute. That’s been clear all along, he added, “just now we have real data to back that up.”

“This is a devastating smackdown of the last two years of lies about the nature of the Republican tax cut,” said Grover Norquist, president of Americans for Tax Reform. “The false narrative driven by Democratic presidential candidates and some partisan media will now not survive contact with reality.”

Photo Credit: Gage Skidmore


Trump Visit Highlights Minnesota Benefits from GOP Tax Cuts

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Posted by John Kartch on Monday, April 15th, 2019, 9:50 AM PERMALINK

President Trump's Tax Day visit to Minnesota today highlights the benefits of the GOP-enacted Tax Cuts and Jobs Act throughout the state.

Minnesotans received an average tax cut of 23.4 percent, according to new data from H&R Block.

And Minnesota employers of all sizes are hiring, raising pay, increasing benefits, giving bonuses, upgrading equipment and expanding operations.

Below are several examples of tax reform good news in Minnesota.
 

Industrial Weldors & Machinists (Duluth, Minnesota) - Investing in employee pensions, hiring new employees:

“This is an American success story of generations,” Pence said of IWM, a third-generation family business that gets 70 percent of its work by rebuilding massive rock crushers used to extract taconite iron ore on the Iron Range.

Trump tax cuts helped the business and its employees, Pence said — including thousands of dollars in investments by the company into IWM employee pensions earlier this year.

“That’s what it’s all about,” Pence said.

It was an easy fact to check after the vice president’s remarks. All four sibling owners of the company were on hand — Dawn Bergh and her brothers Rick, Rob and Randy Abernethy. Bergh confirmed the pension investments for the company’s 32 employees.

“The boilermakers’ pension is in the toilet,” Bergh said. “They’re worried about it. We wanted to give them something that would keep them around. It’s really hard to get employees. We’re hiring right now for both a welder and a machinist.” - August 8, 2018, Twin Cities Pioneer Press article excerpt

3M Company (Maplewood, Minnesota) – the company increased employee pension contributions by $600 million:

3M said its tax rate under the new "Tax Cuts and Jobs Act" will fall to 20 percent to 22 percent in 2018, down from a prior rate of 26 percent to 27 percent. Executives said they will use the savings to boost returns for shareholders, increase pension reserves and to invest in the company. – Jan. 25, 2018 Star Tribune article excerpt

In 2017, free cash flow conversion was impacted by enactment of the TCJA, along with an additional U.S. pension contribution of $600 million that 3M made following the signing of tax reform. – 3M Annual Report for the fiscal year ending December 31, 2018

Priority Courier Experts (St. Paul, Minnesota) – tax reform bonuses were given on Jan. 2, 2018 to employees; further, employees will receive another $500 bonus in 2018 on the anniversary of their hire date:

Priority Courier Experts paid a “TRUMP BUMP” to each of its 80 employees on their January 2nd, 2018 paycheck. We also expanded the “TRUMP BUMP” to pay each employee a $500 bonus on their hire anniversary date in 2018, and our hope for the future is to make the “TRUMP BUMP” Bonus permanent. – Steve Cossack, Founder/CEO, Priority Courier Experts

Minnesota Power (Duluth, Minnesota) – the utility will pass tax cut savings to customers:

"When final rates go into effect late this year, customers will start receiving a 1.5259% credit on their monthly bill through a new line item, called the tax cut rider, totaling about $10 million a year refund until our next rate case," Rutledge said.

For a $100 power bill, that's about $1.53 returned - Aug 10, 2018, Duluth News Tribune article excerpt

Circuit Interruption Technology Inc. -- CIT Relay & Switch (Rogers, Minnesota) – One week of extra pay added to final 2017 paycheck; hiring of new employees, growing the staff by 10 percent:

Circuit Interruption Technology Inc. dba CIT Relay & Switch manufactures and distributes electromechanical relays and switches to the electronics, security, HVAC, appliance and automotive industries. Employees were notified just before Christmas of one extra week pay added to their final year end check as a result of the new tax reform measure. Due to the positive atmosphere created by the passage of the tax bill Company profit sharing combined with normal 401K contributions amounted to an additional 5% per employee for 2017. CIT has added 10% to our staff thus far in January 2018 and more additions are expected. – Rick Hampton, CIT Relay & Switch

Albert Lea Public Warehouse (Albert Lea, Minnesota) – $2,000 bonuses for all 12 employees:

Albert Lea business leaders said the recently passed tax bill is helping them invest in their organizations.

The tax bill passed in December cut the top federal tax rate to 21 percent from 35 percent, likely putting billions of dollars in the pockets of major Minnesota companies.

Albert Lea Public Warehouse Owner Al Larson gave each of his 12 employees a $2,000 bonus, which he said would not have been possible without reduced rates. He said he decided to pay the bonuses in January to help the workers pay off costs incurred during the Christmas season.

“I just distributed it back to them,” he said.

In addition to bonuses, Larson is installing two roofs and investing in new dock levelers.

Larson said he prefers investing company revenue locally instead of contributing more of a percentage to the federal government. – Jan. 30 Albert Lea Tribune article

Otter Tail Power Co. (Fergus Falls, Minnesota) – the utility will pass along tax reform savings to customers.

Koch Companies Inc. (Minneapolis, Minnesota) – increased driver wages; increased sign on bonuses:

Raised driver pay to 41 cents to 45 cents per mile and the maximum sign-on bonus to $7,000 from $5,000 prior to late December.

“Rate increases and benefits from the recent tax law reform have allowed us to re-evaluate our current driver pay to make sure we are putting money back in the pockets of our greatest asset — the driver,” CEO Randy Koch said – Feb. 12 2018, Transport Topics article excerpt

Xcel Energy Minnesota (Minnesota) - The utility will pass tax cut savings along to customers:

About six months ago, Xcel Energy announced its Minnesota customers would receive a rebate because of a federal tax cut. In Minnesota, $200 million was returned to customers through a one-time credit on their bills. A typical Minnesota electricity customer who pays $85 to $90 a month received a credit of about $45. – February 8, 2019, Inforum article excerpt

U.S. Bancorp (Minneapolis, Minnesota) – $1,000 bonuses for 60,000 employees; base wage hike to $15 per hour; $150 million charitable contribution:

“We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers.” – Andy Cecere, President and CEO

Northern States Power (Minneapolis, Minnesota) – The utility will pass along tax cut savings to customers:

The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.

Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).

---

"Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes," said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission Press Release excerpts

Bio-Techne (Minneapolis, Minnesota) -- $500 bonuses for all 1,650+ employees:

Many of you, particularly in the U.S., have probably been keeping up with the news the past few months on U.S. tax reform. With the passage of the bill in Congress yesterday and the President’s signature, the new tax law is now official. How does this affect our company? A lot. Our current corporate income tax levels average between 29% and 31%. With this new tax law, over the next year our tax rates will drop to levels potentially as low as 21%. We don’t know the total answer yet because the law is complicated, and includes tax calculations from other countries where we do business as well. What I can tell you is that we are likely to pay substantially less taxes in the U.S. and overall.  

There has been extensive media coverage here in the U.S. on what companies will do with these gains. The U.S. Government’s primary goal for the new law is that companies will use the additional monies to invest in growth, and not simply to benefit shareholders through a dividend increase or share buyback. I am happy to tell you that we will use the savings to invest in our company and in you. We will use the funds to continue our investment in the company through expansion and acquisitions. But we also want to invest in our employees. Our board of directors has approved a recommendation to pay a bonus of US $500 to every employee globally. The bonus will be paid to all employees employed as of December 31, 2017 (other than the Corporate Leadership Team) and will be included in a January 2018 payroll.  Management and the Board value each of you and your contributions, and this bonus is one way we wish to show our appreciation for your contributions to our strong business performance and excellent execution.  

I look forward to working with all of you to create great future of continued growth for Bio-Techne.  On behalf of the entire management team, thank you. – Dec. 21, 2017 special message to employees from Bio-Techne CEO Chuck Kummeth

Best Buy (Richfield, Minnesota) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. Over 100,000 employees nationwide will receive bonuses:

Best Buy is the latest major corporation to hand out bonuses to its employees as a result of the recently passed corporate tax reform.

In a letter sent to employees Friday afternoon, CEO Hubert Joly said full-time employees will receive a one-time bonus of $1,000 and part-time employees $500.

All permanent employees who are not on an existing bonus plan will receive the additional funds. The bonuses are expected to show up in their paychecks this month.

In all, more than 100,000 of Best Buy’s 125,000 employees in the U.S., Mexico and Canada are slated to receive the extra payouts.

In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.

“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman.

In recent days, other major retailers including Lowe’s, Home Depot and Walmart have also said they will hand out bonuses, expand benefits, and raise wages of its workers in light of the tax reform.

In Minnesota, U.S. Bancorp and TCF Financial also are handing out bonuses to workers and increasing charitable donations. U.S. Bank also said it would raise the minimum wage of its hourly employees to $15.

Among other changes, the new tax law cut the top federal tax rate for corporations from 35 percent to 21 percent.”—Feb. 2 2018, Minneapolis Star Tribune

Hormel Foods Corp. (Austin, Minnesota) – Stock options for employees; increased base wage to $13 per hour:

Hormel Foods Corp. this morning announced that it plans to use savings from the federal Tax Cuts and Jobs Act to award stock options to its employees and raise starting wages to $13 an hour. — Feb. 22, 2018 Post-Bulletin article excerpt

TCF Financial Corporation (Wayzata, Minnesota) -- $1,000 bonuses for full time employees; $500 bonuses for part time employees (exact number receiving bonus unknown at this time):

“As a result of the Tax Cuts and Jobs Act, TCF will provide approximately $5 million in one-time bonuses to eligible team members—$1,000 to full-time team members and $500 to part-time team members—who earned less than $100,000 in total compensation during 2017, totaling 80 percent of its workforce. Additionally, TCF will donate $5 million to TCF Foundation to increase grants to nonprofit organizations in the communities it serves, including increasing its match of team member contributions to nonprofit organizations from 100 percent to 200 percent in 2018.” – Friday Dec. 29, 2017 TCF Financial Corporation press release

Data Sales Co., Inc. (Minneapolis, Minnesota) – $1,000 bonuses for all 80 employees:

Data Sales Co., Inc. announced today that the Company will celebrate the recent passage of tax reform legislation by distributing to all 80 plus employees a special bonus of $1,000 each. Data Sales Co. will benefit from the new tax law lowering the corporate tax rate from 35 percent to 21 percent:

“Our hard-working employees make this company succeed, and we wanted them to share in the savings the company will see and also help grow our economy. Today I’m announcing that every employee will receive a cash bonus of $1,000 each,” said Paul Breckner, President of Data Sales Co. “I also want to thank our local Congressman, Jason Lewis, for his consistent advocacy of tax reform and seeing it through to becoming law. With the majority of our 80+ strong workforce here in Burnsville, I’m pleased that the benefits of tax reform will be felt at home.”

Background on tax reform bonuses and Data Sales Co.:
All employees, whether full-time or part-time, hourly, salaried, commission or non-commission will receive the bonus to show our appreciation and heartfelt thanks for their service. We believe this tax reform will be good for Data Sales, spur economic growth, continue to grow jobs and keep unemployment at an all-time low. – Jan. 22, 2018 Data Sales Co., Inc. press release

DTN (Burnsville, Minnesota) -- DTN an independent provider of information and actionable insights in the areas of agriculture, transportation and energy, and publisher of The Progressive Farmer, gave $1,000 bonuses to nearly 700 employees.

Ecolab Inc. (St. Paul, Minnesota) – $25 million in charitable donations:

In response to the passage of the new U.S. tax law, Ecolab announced its intent to make a $25 million contribution to the Ecolab Foundation. Since 1986, the Ecolab Foundation has contributed more than $100 million to communities in which we do business by providing basic needs, including hunger relief and affordable housing; supporting education, the arts and environmental conservation; as well as providing support to global relief organizations during times of natural disasters. – Jan. 23, 2018 Ecolab Inc. press release

T.J. Maxx – 16 stores in Minnesota – 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

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

Apple (There are five Apple stores in Minnesota: Bloomington, Edina, Minneapolis, Minnetonka, Roseville) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $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.

AT&T -- 1,592 Minnesota employees received $1,000 bonuses; nationally, $1 billion increase in capital expenditures.

Bank of America (Multiple locations in Minnesota) -- $1,000 bonuses.

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

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

CVS Health (Multiple locations in Minnesota) -- Base wage raised to $11 per hour, and other pay ranges adjusted accordingly; company will absorb increases costs of health insurance premiums; creation of new parental leave program.

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

Home Depot (Multiple locations in Minnesota) -- Bonuses for all hourly employees, up to $1,000

Lowe's -- 1,000 employees at 11 stores in Minnesota. Bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (Six locations in Minnesota) – Tax reform bonuses for employees totaling $23 million nationwide.

Taco John’s (62 locations in Minnesota): 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

Starbucks Coffee Company (Multiple locations in Minnesota) – $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 nationwide; 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.

U-Haul (Multiple locations in Minnesota) – $1,200 bonuses for full-time employees, $500 bonuses for part-time employees.

Wal-Mart  69 locations in Minnesota; Base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.

Waste Management, Inc. (Multiple locations in Minnesota) -- $2,000 bonuses.

Wells Fargo – 157 bank locations in Minnesota -- Base wage raised from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over next three years.

Anthem (Multiple locations in Minnesota) -- Nationally, $1,000 in extra 401(k) contributions for 58,000 employees.

Minnesotans are seeing their Trump tax savings attacked by politicians in St. Paul. Led by Governor Walz's tax and spend budget, proposed tax hikes would make health care, pain medicine, and gas more expensive.

Note: If you know of other Minnesota 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: Gage Skidmore


Minnesota Examples of Tax Reform Good News

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Posted by John Kartch on Friday, April 12th, 2019, 5:00 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 Minnesota. (Additions to this list can be sent to jkartch@atr.org)

Industrial Weldors & Machinists (Duluth, Minnesota) - Investing in employee pensions, hiring new employees:

“This is an American success story of generations,” Pence said of IWM, a third-generation family business that gets 70 percent of its work by rebuilding massive rock crushers used to extract taconite iron ore on the Iron Range.

Trump tax cuts helped the business and its employees, Pence said — including thousands of dollars in investments by the company into IWM employee pensions earlier this year.

“That’s what it’s all about,” Pence said.

It was an easy fact to check after the vice president’s remarks. All four sibling owners of the company were on hand — Dawn Bergh and her brothers Rick, Rob and Randy Abernethy. Bergh confirmed the pension investments for the company’s 32 employees.

“The boilermakers’ pension is in the toilet,” Bergh said. “They’re worried about it. We wanted to give them something that would keep them around. It’s really hard to get employees. We’re hiring right now for both a welder and a machinist.” - August 8, 2018, Twin Cities Pioneer Press article excerpt

3M Company (Maplewood, Minnesota) – the company increased employee pension contributions by $600 million:

3M said its tax rate under the new "Tax Cuts and Jobs Act" will fall to 20 percent to 22 percent in 2018, down from a prior rate of 26 percent to 27 percent. Executives said they will use the savings to boost returns for shareholders, increase pension reserves and to invest in the company. – Jan. 25, 2018 Star Tribune article excerpt

In 2017, free cash flow conversion was impacted by enactment of the TCJA, along with an additional U.S. pension contribution of $600 million that 3M made following the signing of tax reform. – 3M Annual Report for the fiscal year ending December 31, 2018

Priority Courier Experts (St. Paul, Minnesota) – tax reform bonuses were given on Jan. 2, 2018 to employees; further, employees will receive another $500 bonus in 2018 on the anniversary of their hire date:

Priority Courier Experts paid a “TRUMP BUMP” to each of its 80 employees on their January 2nd, 2018 paycheck. We also expanded the “TRUMP BUMP” to pay each employee a $500 bonus on their hire anniversary date in 2018, and our hope for the future is to make the “TRUMP BUMP” Bonus permanent. – Steve Cossack, Founder/CEO, Priority Courier Experts

Minnesota Power (Duluth, Minnesota) – the utility will pass tax cut savings to customers:

"When final rates go into effect late this year, customers will start receiving a 1.5259% credit on their monthly bill through a new line item, called the tax cut rider, totaling about $10 million a year refund until our next rate case," Rutledge said.

For a $100 power bill, that's about $1.53 returned - Aug 10, 2018, Duluth News Tribune article excerpt

Circuit Interruption Technology Inc. -- CIT Relay & Switch (Rogers, Minnesota) – One week of extra pay added to final 2017 paycheck; hiring of new employees, growing the staff by 10 percent:

Circuit Interruption Technology Inc. dba CIT Relay & Switch manufactures and distributes electromechanical relays and switches to the electronics, security, HVAC, appliance and automotive industries. Employees were notified just before Christmas of one extra week pay added to their final year end check as a result of the new tax reform measure. Due to the positive atmosphere created by the passage of the tax bill Company profit sharing combined with normal 401K contributions amounted to an additional 5% per employee for 2017. CIT has added 10% to our staff thus far in January 2018 and more additions are expected. – Rick Hampton, CIT Relay & Switch

Albert Lea Public Warehouse (Albert Lea, Minnesota) – $2,000 bonuses for all 12 employees:

Albert Lea business leaders said the recently passed tax bill is helping them invest in their organizations.

The tax bill passed in December cut the top federal tax rate to 21 percent from 35 percent, likely putting billions of dollars in the pockets of major Minnesota companies.

Albert Lea Public Warehouse Owner Al Larson gave each of his 12 employees a $2,000 bonus, which he said would not have been possible without reduced rates. He said he decided to pay the bonuses in January to help the workers pay off costs incurred during the Christmas season.

“I just distributed it back to them,” he said.

In addition to bonuses, Larson is installing two roofs and investing in new dock levelers.

Larson said he prefers investing company revenue locally instead of contributing more of a percentage to the federal government. – Jan. 30 Albert Lea Tribune article

Otter Tail Power Co. (Fergus Falls, Minnesota) – the utility will pass along tax reform savings to customers.

Koch Companies Inc. (Minneapolis, Minnesota) – increased driver wages; increased sign on bonuses:

Raised driver pay to 41 cents to 45 cents per mile and the maximum sign-on bonus to $7,000 from $5,000 prior to late December.

“Rate increases and benefits from the recent tax law reform have allowed us to re-evaluate our current driver pay to make sure we are putting money back in the pockets of our greatest asset — the driver,” CEO Randy Koch said – Feb. 12 2018, Transport Topics article excerpt

Xcel Energy Minnesota (Minnesota) - The utility will pass tax cut savings along to customers:

About six months ago, Xcel Energy announced its Minnesota customers would receive a rebate because of a federal tax cut. In Minnesota, $200 million was returned to customers through a one-time credit on their bills. A typical Minnesota electricity customer who pays $85 to $90 a month received a credit of about $45. – February 8, 2019, Inforum article excerpt

U.S. Bancorp (Minneapolis, Minnesota) – $1,000 bonuses for 60,000 employees; base wage hike to $15 per hour; $150 million charitable contribution:

“We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers.” – Andy Cecere, President and CEO

Northern States Power (Minneapolis, Minnesota) – The utility will pass along tax cut savings to customers:

The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.

Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).

---

"Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes," said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission Press Release excerpts

Bio-Techne (Minneapolis, Minnesota) -- $500 bonuses for all 1,650+ employees:

Many of you, particularly in the U.S., have probably been keeping up with the news the past few months on U.S. tax reform. With the passage of the bill in Congress yesterday and the President’s signature, the new tax law is now official. How does this affect our company? A lot. Our current corporate income tax levels average between 29% and 31%. With this new tax law, over the next year our tax rates will drop to levels potentially as low as 21%. We don’t know the total answer yet because the law is complicated, and includes tax calculations from other countries where we do business as well. What I can tell you is that we are likely to pay substantially less taxes in the U.S. and overall.  

There has been extensive media coverage here in the U.S. on what companies will do with these gains. The U.S. Government’s primary goal for the new law is that companies will use the additional monies to invest in growth, and not simply to benefit shareholders through a dividend increase or share buyback. I am happy to tell you that we will use the savings to invest in our company and in you. We will use the funds to continue our investment in the company through expansion and acquisitions. But we also want to invest in our employees. Our board of directors has approved a recommendation to pay a bonus of US $500 to every employee globally. The bonus will be paid to all employees employed as of December 31, 2017 (other than the Corporate Leadership Team) and will be included in a January 2018 payroll.  Management and the Board value each of you and your contributions, and this bonus is one way we wish to show our appreciation for your contributions to our strong business performance and excellent execution.  

I look forward to working with all of you to create great future of continued growth for Bio-Techne.  On behalf of the entire management team, thank you. – Dec. 21, 2017 special message to employees from Bio-Techne CEO Chuck Kummeth

Best Buy (Richfield, Minnesota) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. Over 100,000 employees nationwide will receive bonuses:

Best Buy is the latest major corporation to hand out bonuses to its employees as a result of the recently passed corporate tax reform.

In a letter sent to employees Friday afternoon, CEO Hubert Joly said full-time employees will receive a one-time bonus of $1,000 and part-time employees $500.

All permanent employees who are not on an existing bonus plan will receive the additional funds. The bonuses are expected to show up in their paychecks this month.

In all, more than 100,000 of Best Buy’s 125,000 employees in the U.S., Mexico and Canada are slated to receive the extra payouts.

In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.

“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman.

In recent days, other major retailers including Lowe’s, Home Depot and Walmart have also said they will hand out bonuses, expand benefits, and raise wages of its workers in light of the tax reform.

In Minnesota, U.S. Bancorp and TCF Financial also are handing out bonuses to workers and increasing charitable donations. U.S. Bank also said it would raise the minimum wage of its hourly employees to $15.

Among other changes, the new tax law cut the top federal tax rate for corporations from 35 percent to 21 percent.”—Feb. 2 2018, Minneapolis Star Tribune

Hormel Foods Corp. (Austin, Minnesota) – Stock options for employees; increased base wage to $13 per hour:

Hormel Foods Corp. this morning announced that it plans to use savings from the federal Tax Cuts and Jobs Act to award stock options to its employees and raise starting wages to $13 an hour. — Feb. 22, 2018 Post-Bulletin article excerpt

TCF Financial Corporation (Wayzata, Minnesota) -- $1,000 bonuses for full time employees; $500 bonuses for part time employees (exact number receiving bonus unknown at this time):

“As a result of the Tax Cuts and Jobs Act, TCF will provide approximately $5 million in one-time bonuses to eligible team members—$1,000 to full-time team members and $500 to part-time team members—who earned less than $100,000 in total compensation during 2017, totaling 80 percent of its workforce. Additionally, TCF will donate $5 million to TCF Foundation to increase grants to nonprofit organizations in the communities it serves, including increasing its match of team member contributions to nonprofit organizations from 100 percent to 200 percent in 2018.” – Friday Dec. 29, 2017 TCF Financial Corporation press release

Data Sales Co., Inc. (Minneapolis, Minnesota) – $1,000 bonuses for all 80 employees:

Data Sales Co., Inc. announced today that the Company will celebrate the recent passage of tax reform legislation by distributing to all 80 plus employees a special bonus of $1,000 each. Data Sales Co. will benefit from the new tax law lowering the corporate tax rate from 35 percent to 21 percent:

“Our hard-working employees make this company succeed, and we wanted them to share in the savings the company will see and also help grow our economy. Today I’m announcing that every employee will receive a cash bonus of $1,000 each,” said Paul Breckner, President of Data Sales Co. “I also want to thank our local Congressman, Jason Lewis, for his consistent advocacy of tax reform and seeing it through to becoming law. With the majority of our 80+ strong workforce here in Burnsville, I’m pleased that the benefits of tax reform will be felt at home.”

Background on tax reform bonuses and Data Sales Co.:
All employees, whether full-time or part-time, hourly, salaried, commission or non-commission will receive the bonus to show our appreciation and heartfelt thanks for their service. We believe this tax reform will be good for Data Sales, spur economic growth, continue to grow jobs and keep unemployment at an all-time low. – Jan. 22, 2018 Data Sales Co., Inc. press release

DTN (Burnsville, Minnesota) -- DTN an independent provider of information and actionable insights in the areas of agriculture, transportation and energy, and publisher of The Progressive Farmer, gave $1,000 bonuses to nearly 700 employees.

Ecolab Inc. (St. Paul, Minnesota) – $25 million in charitable donations:

In response to the passage of the new U.S. tax law, Ecolab announced its intent to make a $25 million contribution to the Ecolab Foundation. Since 1986, the Ecolab Foundation has contributed more than $100 million to communities in which we do business by providing basic needs, including hunger relief and affordable housing; supporting education, the arts and environmental conservation; as well as providing support to global relief organizations during times of natural disasters. – Jan. 23, 2018 Ecolab Inc. press release

T.J. Maxx – 16 stores in Minnesota – 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

Apple (There are five Apple stores in Minnesota: Bloomington, Edina, Minneapolis, Minnetonka, Roseville) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $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.

AT&T -- 1,592 Minnesota employees received $1,000 bonuses; nationally, $1 billion increase in capital expenditures.

Bank of America (Multiple locations in Minnesota) -- $1,000 bonuses.

 

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

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

CVS Health (Multiple locations in Minnesota) -- Base wage raised to $11 per hour, and other pay ranges adjusted accordingly; company will absorb increases costs of health insurance premiums; creation of new parental leave program.

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

Home Depot (Multiple locations in Minnesota) -- Bonuses for all hourly employees, up to $1,000

Lowe's -- 1,000 employees at 11 stores in Minnesota. Bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (Six locations in Minnesota) – Tax reform bonuses for employees totaling $23 million nationwide.

Taco John’s (62 locations in Minnesota): 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 John’s International, Inc. press release

Starbucks Coffee Company (Multiple locations in Minnesota) – $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 nationwide; 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.

U-Haul (Multiple locations in Minnesota) – $1,200 bonuses for full-time employees, $500 bonuses for part-time employees.

Wal-Mart  69 locations in Minnesota; Base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.

Waste Management, Inc. (Multiple locations in Minnesota) -- $2,000 bonuses.

Wells Fargo – 157 bank locations in Minnesota -- Base wage raised from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over next three years.

Anthem (Multiple locations in Minnesota) -- Nationally, $1,000 in extra 401(k) contributions for 58,000 employees.

Note: If you know of other Minnesota 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


McConnell on Tax Cuts: “The evidence is in – it’s been very good for the economy.”

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Posted by John Kartch on Tuesday, April 9th, 2019, 11:10 AM PERMALINK

Today Senate Majority Leader Mitch McConnell (R-Ky.) addressed Americans for Tax Reform’s annual pre-Tax Day press conference, hosted by Grover Norquist.

“The evidence is in – that it’s been very good for the economy,” said Sen. McConnell of the 2017 Tax Cuts and Jobs Act enacted by House and Senate Republicans and signed by President Donald Trump.

“I think it was one of the great successes. Obviously I put the Supreme Court first, but in a close second, I would put this extraordinary bill,” said McConnell. “This was a lot better than the one we did in 1986, a lot more pro-growth, and at the risk of sounding a partisan note, I think that’s probably because no Democrats voted for it, so we didn’t have to water it down in ways that made it less consequential for the economy. So it’s a day to celebrate. Most Americans have paid less this year than they did in the past, and I think we’re reaping the benefits of it. And again, I want to thank you Grover for pestering us on this issue for literally decades, and again salute former Speaker Paul Ryan for whom this was a great passion.” A Kentucky list of good news arising from the tax cuts can be found here.

McConnell also thanked Norquist “for being on the front of this issue for a long time.”

Ways and Means Committee member David Schweikert (R-Arizona’s 6th District) noted the Tax Cuts and Jobs Act’s positive effect on wages and jobs. “If you take a look at what’s going on, it’s a miracle mathematically,” said Schweikert at the press conference. “And you’d think our friends on the other side would actually embrace the joy of what’s going on in our society, where populations that were functionally written off as to be the permanent underclass, are not. Their employment numbers, they are the fastest income movement quartile, they are the fastest quartile with income growth, and I will argue with you that it is substantially because of the things we did in the tax reform that are moving investment into the parts of our economy that actually increase productivity. Because you can’t pay people more if you don’t have a society that is becoming more productive. There’s good things happening out there, and it breaks my heart in this hyper-partisan environment that we exist in, that there seems to be this inability whether in this body or in our press to take one step backwards and take a look at the baseline data and what’s going on and the really good things that are happening out there.” An Arizona list of good news arising from the tax cuts can be found here.

[Click here to read more of Congressman Schweikert's remarks from today's press conference

Ways and Means Committee member Adrian Smith (R-Nebraska’s 3rd District) noted the Tax Cuts and Jobs Act’s inclusion of both personal and corporate tax relief. “I think it’s important to note that even President Obama said we needed a lower corporate tax rate. But we Republicans were not going to just pass corporate tax relief and not give individuals tax relief as well. That’s why we doubled the standard deduction, that’s why we doubled the child tax credit, and really empowered workers,” he said. “The whole bill created upward pressure on wages. That’s going to do far more for workers than a group of politicians thinking they can come up with new regulations that will highlight what they think they can. We are seeing this economic growth in a way that’s substantive, it is meaningful, and workers are benefiting, our economy is expanding, and I think that’s good news in and of itself.” A Nebraska list of good news arising from the tax cuts can be found here.

[Click here to read more of Congressman Smith's remarks from today's press conference

Congressman Kevin Hern (R-Oklahoma’s 1st District) is a longtime business owner and job creator. “I know what burdensome tax policy looks like,” said Hern. “Since reform was passed, Oklahomans have seen a windfall of economic growth, wage increases, more jobs, better benefits, and the list goes on and on. In fact, we have a great example in our district – Tulsa-based QuikTrip is a very large 800-unit chain that has gas stations, convenience stores, and is constantly improving and innovating. They give all of the credit of their continued growth and all they’ve done for their employees, the bonuses they’ve given to their hourly employees, not to just their leadership, that they’ve given because of the Tax Cuts and Jobs Act. And there are many other examples around our district from that particular tax cut.” An Oklahoma list of good news arising from the tax cuts can be found here.

Hern is working to make the tax cuts permanent. “We’ve got to continue our work, continue our job to make this permanent as we get beyond 2025.”

[Click here to read more of Congressman Hern's remarks from today's press conference]

Norquist also provided examples of the household tax relief thanks to the TCJA. “A family of four with an annual income of $73,000 – the median family income – is seeing a tax cut this year of $2,058. A 58 percent reduction in federal taxes. A single parent with one child with an annual income of $41,000 is seeing a tax cut of $1,304 – a 73 percent reduction in their tax burden.”

Norquist noted ATR’s compilation of over 800 in-their-own-words examples of employers raising wages, hiring more workers, expanding facilities and increasing employee benefits as a result of the TCJA.

Click here for the full video of today's press conference. 


North Dakota Examples of Tax Reform Good News

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Posted by John Kartch on Monday, April 1st, 2019, 1:30 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 North Dakota. (Additions to this list can be sent to jkartch@atr.org)

Baker Boy (Dickinson, North Dakota) – Expand operations, develop new product line, hire more employees:

Baker Boy, a North Dakota baked goods manufacturer, is producing a brand new donut thanks to the GOP tax cuts. They are also purchasing new equipment, expanding business operations, and hiring new employees.

Never before seen in North America, Magic Ring Donuts are jelly or creme-filled donuts that have a hole in the middle and are injected with filling in the donut ring. The donuts are manufactured with new technology that is only currently used overseas.– October 23, 2018 ATR Blog Post

True North Steel (locations in  West Fargo, Fargo, and Mandan) - Hiring new employees:
 
TrueNorth Steel Employees flew to D.C. to discuss recent tax cut measures and its effects on their business.
 
TrueNorth's president says demand for steel, and more work hours is attributing to their growth.
 
Because of this business environment, TrueNorth is able to 'reinvest' in itself.
 
To do this, they are adding 50 new jobs across their 10 locations.
 
"We're a company that's been around since 1945, 73 years, and we plan on being around for another 73 years. So we do plan on growing and that's our intent to grow long term for this organization," said Dan Kadrmas, said TrueNorth Steel president. - April 28, 2018, WDAY ABC article excerpt
-- 
A steel company based here recently went to the White House to talk about how recent tax reforms influenced its decision to grow its workforce.
 
TrueNorth Steel, which has a corporate office in West Fargo in addition to a tank and structural steel plant at 4401 Main Ave. in Fargo and a drainage facility at 1522 40th St. N. in Fargo, announced earlier this week that six TrueNorth employees were among the business owners and representatives invited to participate in the April 12 event in the Rose Garden.
 
The manufacturer of structural steel, tanks and other products said it plans to grow its workforce about 10 percent "as a result of improvements to the U.S. business climate." A news release said that growth will result in about 50 new jobs across its 10 locations in the Dakotas, Minnesota, Montana and Wyoming.
 
"It was a special honor to represent our hard-working employees across the Midwest," CEO Ole Rommesmo said in a written statement. "The new tax laws are one reason we are creating new jobs throughout the region as well as expanding some of our facilities."
 
TrueNorth President Dan Kadrmas said tax cuts and other policy changes under the President Donald Trump administration are driving an increasing demand for steel products. - April 27, 2018, West Fargo Pioneer article
 

Xcel Energy North Dakota (North Dakota) - The utility will pass tax cut savings along to customers:

Xcel Energy will soon distribute nearly $10 million to all North Dakota electricity customers as a result of the federal tax cut. All Xcel Energy electricity customers in the state will receive a credit on their bills. The refund for a residential electricity customer will average about $46, but will vary based on each customer’s actual use.

The North Dakota Public Service Commission approved the refunds this week and customers should receive them as one-time bill credit beginning this spring. – February 8, 2019, Inforum article excerpt

Scheels -- Minot, Bismarck, Fargo, Grand Forks -- $1,000 and $500 bonuses; investment in new stores, increased charitable donations:

SCHEELS is about our PEOPLE and the communities in which we live and work. As we enter 2018, the new tax reform bill offers a huge opportunity for American business and notably our employee-owned company. This new bill allows SCHEELS to:

- Invest in new stores
- Create jobs in new and existing markets
- Increase our charitable impact in our communities
- $1,000 bonus for Scheels associates working >1000 hours
- $500 bonus for Scheels associates working 500 hours

It’s opportunities like this that give our employee-owned company the ability to create a vision for steady and healthy growth in our communities. – Dec. 28, 2017 Scheels statement

--

Right after the tax reform bill became law in December, leaders of Fargo-based Scheels All Sports decided employees would get some extra money, a company official said during Vice President Mike Pence's campaign-style rally here Tuesday, March 27.

"We knew we wanted to do something intentional right away," said Chief Financial Officer Michelle Killoran. "So we decided to give a tax-reform bonus to our associates."

After hearing from employees, it became clear many didn't know what tax reform was or that it had happened, she said. Company leadership responded by holding meetings to explain to employees the "positive impacts" of the reforms to them and their employer, she said. – March 27, 2018 Fargo Forum article excerpt

Gate City Bank -- headquarters in Fargo with branch locations in Minot, Mandan, Bismarck, Mohall, Carrington, Dickinson, Devils Lake, Jamestown, Williston, Hettinger, Park River, Mayville, Grand Forks, West Fargo, and Fargo -- $1,000 hand-delivered bonus checks to 538 non-management personnel; $500,000 higher charitable giving; $500,000 worth of free home appraisals.

“This new tax reduction enables us to make decisions that benefit our customers, communities and team members in a significant way which has been our culture for decades. Gate City Bank is making a commitment to reinvest an additional $1.6 million in 2018.”

“As a thank you for our employees' hard work and dedication, we will be providing our 538 employees with $1,000 each, giving back over $625,000. Every employee will be hand-delivered a check for a net amount of $1,000 on January 15th. Executive Leadership, Regional Leaders, Office Managers and Department Managers are not eligible. This is above and beyond general compensation.”

Otter Tail Power Company -- The utility is passing tax reform savings along to customers:

“Federal corporate incomes taxes are a cost of service to our customers,” Otter Tail said in its request. “The reduction of the federal corporate income tax rate from 35 percent to 21 percent reduces Otter Tail’s cost of providing service.” -- Feb. 27, 2018 Bismarck Tribune article excerpt

Montana-Dakota Utilities Co. (Bismarck, North Dakota) – The utility is passing tax reform savings along to customers:

Montana-Dakota Utilities filed proposed lower electric prices with the North Dakota Public Service Commission to account for the impact of the Tax Cuts and Jobs Act. The company has calculated a $7.2 million benefit to North Dakota electric customers.

On average, a residential customer will see their monthly bill lowered by $3.65. The lower prices will be effective upon PSC approval. Based on the date of PSC approval, customers also will receive a refund for the amount overpaid from January 1 to the date that new electric prices are set.

"Working through the financial impacts of the Tax Cuts and Jobs Act is a complex process. The result will be a reduction in the price customers pay for electricity in North Dakota,” said Nicole Kivisto, president and CEO of Montana-Dakota Utilities. – March 9, 2018 Montana-Dakota Utilities Co. Website

Dollar Tree -- Bismarck, Devils Lake, Fargo, Grand Forks, Jamestown, Minot, Wahpeton - Base wages increased by a total of $100 million nationwide, plus enhanced benefits including maternity leave and employee training.

U-Haul -- locations in Beach, Dickinson, Harwood, Mandan, Tioga, Beulah, Ellendale, Hazen, Minot, Valley City, Bismarck, Fargo, Jamestown, Mott, Wahpeton, Bottineau, Grafton, Kenmare, New Town, Watford City, Cavalier, Grand Forks, Killdeer, Oakes, West Fargo, Devils Lake, Harvey, Lisbon, Rolla, and Williston – $1,200 bonuses for full-time employees, $500 for part-time employees. 

Bank of the West -- branch locations in Lidgerwood, Fargo, Wahpeton, Dickinson, and Beach – Base wage increased to $15 per hour:

Bank of the West announced it will increase the company's minimum wage across the business to $15 per hour. The change will impact one-quarter of hourly team members, primarily in the Bank's branches and call centers.

The permanent increase will take effect on April 1 and is part of our long-standing commitment to reward our team members and attract the industry's best talent. At more than double the federal minimum wage, the Bank's new minimum wage is the result of a thorough internal review of the Bank's business stemming from the federal tax reform recently completed by the U.S. Congress. – Feb. 8 2018, Bank of the West press release

Lowe's -- 300+ employees at three stores in North Dakota -- Employees received up to $1,000 bonuses based on length of service, plus expanded benefits and maternity/parental leave and $5,000 of adoption assistance.

Walmart - North Dakota employees at 14 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.

Best Buy -- stores in Bismarck, Fargo, Grand Forks and Minot -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.

Cintas -- locations in Bismarck and West Fargo --  $1,000 bonuses for employees of at least a year $500 for employees of less than a year.

Taco John’s (25 locations in North Dakota): 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

Starbucks Coffee Company (13 locations in North Dakota) – $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.

AT&T -- $1,000 bonuses for 156 North Dakota 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

McDonald’s (25+ locations in North Dakota) – 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

FedEx (Multiple locations in North Dakota)– 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

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

Wells Fargo   19 locations in North Dakota -- 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 North Dakota examples, please email John Kartch at jkartch@atr.org

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

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Maryland Examples of Tax Reform Good News

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Posted by John Kartch on Thursday, March 21st, 2019, 2:15 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 Maryland. (Additions to this list can be sent to jkartch@atr.org)

Arnold Packaging (Baltimore, Maryland) - Increasing employee salaries, purchasing new equipment:

According to Mick Arnold, president of Arnold Packaging, the company reinvested its savings by raising salaries by 4 percent for employees in the manufacturing facility and purchasing more equipment to meet demand.

“We are constantly making reinvestments in our people, not just equipment, not just automation, but in our people,” Arnold said. “Our workforce is critical to our success.” - May 3, 2018, National Association of Manufacturers Shopfloor blog excerpt

Jamison Door (Hagerstown, Maryland) - Employee bonuses, facility expansion, growing workforce by 115%,  investing in new technology:

Jamison Door, which manufactures temperature-controlled doors, has been a family-owned business since 1906. The company’s commitment to the men and women on its shop floor means that every single employee is sharing in the benefits of tax reform.

Jamison’s 120 employees received two bonuses, each equivalent to one week’s salary—first in August, in anticipation of tax reform, and again in February, after the new law took effect.

That is just the beginning: this year, Jamison plans to do even more, offering another raise to its employees.

Jamison Door is also taking advantage of tax reform and using its tax savings to reinvest in its business. That means growing its facilities, investing in new technology and creating skilled jobs in the Hagerstown plant.

Over the next year, Jamison is adding more than 50,000 square feet in new manufacturing space.

“Right now, we’re in the process of adding a significant-sized facility to add different product lines,” added Chairman and CEO John Williams, referencing his company’s plan to expand a product line of high-speed roll-up doors. “It’s a 400 percent increase in plant size.”

“We are spending about $1.5 million on new state-of-the-art equipment in our main plant, which makes foamed-in-place cold storage doors, and more than $3.5 million on the new plant for high-speed roll-up doors. These are significant investments for a company our size, and we feel comfortable making these investments because of the favorable business climate and the benefits of the lower tax rates.”

Expanding the company’s facilities also means Jamison will need more workers, and it plans to increase hiring dramatically. Over the next three years, Jamison plans to increase its workforce by more than 115 percent.

“Tax reform has absolutely made it more feasible to undertake these projects,” explained Williams. “Tax reform is necessary for us to keep expanding and to keep our business strong.” - July 5, 2018, National Association of Manufacturers article excerpt

Flying Dog Brewery (Frederick, Maryland) - purchasing new equipment:
 

It's a similar story for Maryland's Flying Dog Brewery. CEO Jim Caruso (who is a donor to the Reason Foundation, which publishes this website) says the tax cuts might not look like much at the consumer level, but they free up a lot of money for businesses to reinvest in their operations.

 

"When you look at this reduction in taxes. That translates to a penny per bottle. It's a small cost per bottle times the number of cases, that adds up pretty quickly," says Caruso, saying his company saved some $300,000 thanks to the tax cuts, which he says has gone toward buying new capital equipment. - November 21, 2018 article excerpt from Reason Hit & Run Blog excerpt

 

Marlin Steel (Baltimore, Maryland) - Increased workforce by 10 percent, new investments in machinery:

At Marlin Steel, which only buys American steel and exports to 39 countries, we have already done just that. We increased our workforce by 10 percent to manage more than $1 million in new USA-made equipment. Tax reform gave us the confidence to make these important investments — investments not just in our company but in the lives of hardworking Marylanders. One of the machines we bought makes products here in Baltimore that we will export to Mexico two times a week.

Our existing employees are also better off, given that tax cuts mean they are taking home more money in their paychecks. It’s a little extra security after years of economic anxiety and uncertainty. One of our employees put the savings toward buying his new house. Some of our new employees hired since tax reform have also achieved important life goals: One bought a car; another moved to a new apartment; and a third is able to pay off debt, support his daughter and move to a new apartment. - June 21, 2018, Baltimore Sun article excerpt

Danko Arlington Inc. (Baltimore, Maryland) - Employee wage increases, hiring new employees, renovating company facilities, purchasing new equipment:

Danko Arlington and its employees have also benefited from the tax cuts.  Just in the past few months, the company purchased and fully depreciated a new 3-D sand printer in December 2017, provided higher wage increases in January, renovated its seventy-five-year-old pattern shop into a state-of-the-art additive manufacturing center in February, and hired six more workers in March.

Overall the company is looking forward to the expanding economy — including increased funding for defense.  Danko Arlington is not alone. According to a recent survey from the National Association of Manufacturers, optimism among manufacturers registered its second-highest level ever recorded (93.5 percent) in the 20-year history of the survey. - April 12, 2018, Danko Arlington release excerpt

Dixon Valve (Chestertown, Maryland) – $1,000 bonuses:

A Maryland manufacturer will pay $1,000 bonuses to full-time employees as a result of the Republican tax cuts, a move cited by House Speaker Paul Ryan’s press office Wednesday as an example of the tax law working.

Dixon Valve, a company in Chestertown that makes hose fittings and accessories, said the bonuses were a “direct result” of the tax overhaul and regulatory relief.

Hundreds of companies have announced bonuses, raises or other benefits for workers tied to the tax overhaul, according to the anti-tax group Americans for Tax Reform.

Dixon Valve’s announcement stands out, though, because it is one of the companies that Ryan visited in October as he was trying to build support for the massive legislation. – March 28, 2018 Washington Examiner article excerpt

Sprouts Farmers Market (Ellicott City, Maryland) – Pay raises and enhanced employee benefits:

The company also said it plans to use about one third of the savings from the recently-passed tax reform for “investments” in employees.

“to ensure we remain in a leadership position to attract the right talent, we will further invest in our team members by improving pay and improved benefits such as healthcare and expanding maternity leave,” Maredia said. “We will invest an additional $10 million, or approximately one-third of our tax savings, for our team members in 2018. – Feb. 23 2018, Produce Retailer article excerpt

Turbohaul (Annapolis Junction, Maryland) - Purchased new equipment:

“We desperately needed to invest in equipment. For years now I have an aging fleet and have just been very hesitant to pull the trigger on that investment because of the economic climate and the regulatory climate that we are in, tax climate that we’re in. So it was a real shot in the arm to us to get this tax bill passed and I’m happy to report that over the next 18 months we’ll be investing over $2 million in new trucks and equipment for our locations.”

“But what’s even better for me really than trucks…is the effect it has on our people. Most of our people, it’s the first job that they get. A lot of guys and gals that come to work for us, they’re right out of high school. It’s all they’ve got as a high school diploma maybe. We take them, we train them, we give them opportunities and real professional environment and a company, and they’re able to make a real wage and provide for their families. A lot of them from disadvantaged backgrounds and communities and so on. These new trucks they not only will look great and, you know, haul things great, but they’ll be able to be more efficient in their jobs and we incentivize everybody from the starting labor on up through the driver. …we’ve estimated that they have the potential now with these new trucks and equipment to add about $5,000 to their salaries to their wages for this year based on just averages of what they will likely make with these new trucks and equipment that will make them more efficient more safe more comfortable you know in their jobs.” - April 17, 2018 Tax Talk Roundtable, Kevin Daly, Founder of Turbohaul

McCormick & Company (Sparks, Maryland) – $1,000 bonuses:

McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, announced plans to reinvest a portion of its incremental tax savings from the recent U.S. Tax Act into one-time $1,000 bonus payments for eligible U.S. hourly employees in May. The company also announced plans to accelerate hourly employee wage increases to ensure more competitive compensation and attract, develop and retain top talent within the organization. The changes will benefit the majority of the company's U.S. based hourly employees.

"At McCormick, we take a long-term view of the people in our organization. We want McCormick to be a great place for people to come work and have engaging and fulfilling careers. The passage of the U.S. Tax Reform Act provides us an opportunity to demonstrate the Power of People, and for the company to show its commitment to the 2-for-1 spirit," said Lawrence E. Kurzius, Chairman, President and CEO of McCormick. – March 27, 2018 McCormick & Company, Inc. press release

St. John’s Properties Inc. (Baltimore, Maryland) – $1,500 bonuses:

Developer St. John Properties, Inc. is awarding its employees a one-time cash bonus of $1,500 in response to the recent federal tax plan passed by Congress.

The Baltimore-based real estate development and management company said Monday its 180 workers would receive the bonus this month in their paychecks as a result of corporate tax savings allocated under the Tax Cuts and Jobs Act of 2017. – Feb. 12, 2018 Baltimore Business Journal article excerpt

Comfort Inn (Cambridge, Maryland) (Neema Hospitality Franchise) - Renovations:

$400,000 investment in renovation and upgrades due to tax reform - August 3, 2018 phone call with Americans for Tax Reform

Sinclair Broadcast Group (Hunt Valley, Maryland) -- $1,000 bonuses for 9,000 employees:

“We are grateful to our president and legislature for passing the landmark Tax Cuts and  Jobs Act and are excited about the benefits it will provide for our country’s economy, our Company, and our employees,” stated Chris Ripley, Sinclair’s President and CEO.“We recognize that our employees are our most valuable resource, truly appreciate their combined achievements for our Company and look forward to a very bright future.” – Dec. 22, 2017 Sinclair Broadcast Group press release

Harford Alarm Company (Bel Air, Maryland) - $1,000 bonuses for all 13 employees.

Baltimore Gas & Electric (Baltimore, Maryland) – The utility is passing on $82 million worth of tax savings, resulting in lower gas and electric bills for customers:

Today BGE will file with the Maryland Public Service Commission (PSC) to pass approximately $82 million in annual tax savings to customers, resulting from federal tax cost reductions. The Tax Cuts and Jobs Act, which decreased the corporate tax rate from 35 percent to 21 percent, was signed into law on Dec. 22, 2017 and became effective on Jan. 1, 2018. If approved by the PSC, the average BGE residential electric customer can expect to see an estimated $2.31 decrease on their monthly bill, and the average residential combined natural gas and electric customer can expect an estimated $4.27 monthly reduction, effective in February 2018.

“Reduced tax costs create an opportunity for BGE customers to benefit from further decreases in their total energy bills, said Calvin G. Butler Jr, chief executive officer of BGE. – Jan. 5, 2018 Baltimore Gas & Electric press release

Apple (Retail locations in Annapolis, Bethesda, Columbia, Towson) -- $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.

AT&T -- $1,000 bonuses for 1,521 Maryland 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

STERIS Corp. (Maryland locations in Rockville and Timonium) -- $1,000 bonuses totaling $7 million for non-executive U.S. -based employees:

Like many companies, the recent tax reform in the U.S. will result in significant additional earnings for STERIS to strategically grow our business and return value to Customers, employees and shareholders.  One of our first actions on that front will be a one-time special discretionary bonus of $1,000 to all U.S. employees other than senior executives. -- Feb. 7, 2018 STERIS plc press release

Dayton T. Brown Inc. (Lexington Park, Maryland) -- $400 bonuses:

A small Bohemia company is following the lead of large corporations that are passing on some expected savings from tax reform to employees in the form of bonuses.

Dayton T. Brown Inc., an engineering and testing company, is giving each of its roughly 210 employees a $400 bonus, Steve Marini, chief financial officer, said Friday.

President Donald Trump signed the tax overhaul bill into law Friday. The bill lowers the corporate tax rate in 2018 to 21 percent from 35 percent.

All of Dayton T. Brown’s full- and part-time employees will receive the bonuses, likely in January, Marini said.

“We’re going to save a significant amount of money on this new tax law and . . . certainly, we’re nothing without our employees,” Marini said.

The inspiration for the bonus was AT&T’s announcement Wednesday that it was giving its employees $1,000 bonuses, Marini said.

Dayton T. Brown, founded in 1950, is a private company that primarily serves the aerospace and defense industry. Its largest customers are the U.S. Navy, Sikorsky Aircraft Corp. and Northrop Grumman.

It has 170 employees in Bohemia. The rest work in Shelton, Connecticut, and Lexington Park, Maryland. -- Dec. 22, 2017 Newsday article excerpt

Best Buy -- 32 locations in Maryland; $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.

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

Great Southern Wood Preserving, Inc. (Hagerstown, Maryland) -- 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

Wal-Mart –  60 locations in MarylandWalmart employees are receiving tax reform bonuses of up to $1,000; Nationally, base wage increase for all hourly employees to $11; expanded maternity and parental leave; $5,000 for adoption expenses.

Home Depot -- 41 locations in Maryland, bonuses for all hourly employees, up to $1,000

Lowe's -- 4,000 Maryland employees at 28 stores and one distribution facility -- Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (11 locations in Maryland) – Tax reform bonuses to employees.

Starbucks Coffee Company (257 locations in Maryland) –$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.

T.J. Maxx – (25 locations in Maryland) – 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 Maryland) – $1,200 bonuses for full-time employees, $500 for part-time employees.

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

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

Bank of America (155 branch locations in Maryland) -- $1,000 bonuses.

McDonald’s (370+ locations in Maryland) – 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 – 81 banks in Maryland; 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 next three years.

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

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

 

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Wyoming Examples of Tax Reform Good News

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Posted by John Kartch on Thursday, March 21st, 2019, 12:15 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 Wyoming (Additions to this list can be sent to jkartch@atr.org)

Taco John’s (Headquarters in Cheyenne; 26 store locations in Wyoming) -- All full-time and part-time crew members received a $200 after-tax bonus; Franchisee support center employees received $1,000 bonuses; increased charitable donations:

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

Jonah Bank of Wyoming (Casper and Cheyenne) - $1,000 bonus, increased charitable contributions to the Casper and Cheyenne communities:

Jonah Bank has announced it will give each of its employees a thousand dollar bonus and "significantly increase" its giving in the Casper and Cheyenne communities as a result of Congress passing the tax reform bill, according to a press release. – K2.com powered by KTWO news article excerpt

AT&T -- $1,000 bonuses to 61 Wyoming employeesNationwide, $1,000 bonuses for 200,000 employees and a $1 billion increase in capital expenditures:

Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.

Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.

“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”

Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release

Walmart – Wyoming employees at 12 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 -- Five locations in Wyoming - Bonuses for all hourly employees, up to $1,000.

Lowe's -- 600+ employees at one store location and one distribution facility in Wyoming. 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.

U-Haul (Multiple locations in Wyoming) - $1,200 bonuses for full-time employees, $500 for part-time employees.

Best Buy -- Two locations in Cheyenne and Casper; $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. 

Chipotle Mexican Grill (Locations in Cheyenne and Casper) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.

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

Dollar Tree, Inc. (Multiple locations in Wyoming) - Nationwide, $100 million investment in raising base wages, enhanced benefits including maternity leave for qualifying employees, and employee training. 

Starbucks Coffee Company (23 locations in Wyoming) –$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.

T.J. Maxx – (Three locations in Wyoming -- Cheyenne, Jackson Hole, and Rock Springs) – 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

FedEx (Multiple locations in Wyoming) – 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 (32 locations in Wyoming) – 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 Wyoming) - 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 Wyoming examples, please email John Kartch at jkartch@atr.org

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

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