John Kartch

Utah Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Sunday, December 1st, 2019, 7:45 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 Utah. (Additions to this list can be sent to jkartch@atr.org)

SkyWest Airlines (St. George, Utah) -- Increased employee bonus and incentive program; increased 401(k) contributions; increased capital expenditures; increased charitable donations. Under the enhanced bonuses, "employees are expected to enjoy a nearly 17 percent increase in 2018 financial bonuses for every eligible employee."

The full internal memo is below:

 There have been numerous questions and much publicity surrounding recent significant tax reform becoming effective this year. As it has now been signed into law, SkyWest plans to ensure employees enjoy the legislation’s benefits through increased Performance Rewards and 401(k) discretionary contributions.

“Our employees are the foundation of everything we do,” said SkyWest, Inc. President and CEO Chip Childs. “This tax reform enhances our ability to maintain strong,sustainable careers and we’re pleased to recognize our people by passing its positive  impact throughout 2018 and beyond. Additionally, given the new long-term benefits of the reform, SkyWest plans to increase our charitable contributions, as well as reinvest  in our fleet and across our operation to provide even more confidence in our airline and future.”

SkyWest’s Financial Performance Rewards and other workgroup bonus programs pay employees on a percentage of the SkyWest Airlines net margin. Historically, these  programs have been modeled to neutralize any tax impact (which has been generally   negative) to employees. However, under new tax reform, the company will modify those models to pass the benefit on to employees. As a result, employees are expected  to enjoy a nearly 17 percent increase in 2018 financial bonuses for every eligible employee. Additionally, the company will increase its discretionary 401(k) contribution to all participating employees in 2018. This change will be effective January 1, 2018, and will be distributed beginning with the first 2018 Performance Rewards payout in late April 2018

Performance Rewards and profit sharing program payouts will remain on current  schedules based on each specific program; and the company will continue to evaluate each of our programs for economic impact and the most value to employees.

“This is not a one-time bonus, but will be an ongoing benefit to employees for the duration of the legislation. Becoming the partner and investment of choice is not possible without being the employer of choice,” continued Chip. “In today’s environment, it’s more important than ever that we recognize our people who take care of our customers. To our incredible team, I want to say thank you for the great work you do each and every day to take care of each other and our customers.”

Larry H. Miller Group of Companies (Sandy, Utah) -- $1,000 bonuses for 10,000 employees:

Utah's first lady of business is sharing some of her good fortune with the people who are helping to build her family's empire.

About 10,000 employees of the Larry H. Miller Group of Companies will be getting an extra $1,000 in their next paycheck courtesy of the owner and chairwoman, Gail Miller.

The company confirmed the gift authorization Thursday. David Blain, president of Saxton Horne Communications, the advertising and communications agency for the LHM Group, said the largesse is a token of Miller's gratitude toward the thousands of people who make the company so successful.

"Gail Miller took an opportunity to reward our front-end employees with a gesture of thanks," he explained. "Our vision for the company is to be the best place in town to work and the best place to do business. Because of their commitment to that vision, Gail wanted to reward the employees."

The LHM Group is comprised of more than 80 businesses operating in 46 states with over 10,000 employees and total assets valued at more than $2.6 billion — including 52 car dealerships.

The LHM Group joins a number of large corporations that have given back to its employee base in the wake of the new tax law passed by Congress in December. This year, scores of the nation's biggest companies — including Walmart and Walt Disney — have bestowed tax-cut windfalls on workers, primarily in the form of one-time bonuses as well as salary increases and retirement plan matches.

--

Some of the many LHM companies include the Larry H. Miller Dealerships, Vivint Smart Home Arena, Utah Jazz, Salt Lake Bees, Saxton Horne Communications, Salt Lake City Stars, Megaplex Theatres, the Zone Sports Network, Prestige Financial, Total Care Auto, Jordan Commons, Larry H. Miller Real Estate and Tour of Utah. -- March 1, 2018 Deseret News article excerpts

Dominion Energy, Utah – The utility will lower rates for customers because of tax reform:

As a result of federal tax cuts, Dominion Energy is passing on $17 million in savings to its consumers.

The Utah Division of Public Utilities announced that the energy company filed January 31, 2018, for the multi-millions in adjustments that enables customers to get a break on their gas bills.

According to the Division of Public Utilities, Utah utility customers will begin seeing savings from federal tax reform over the next few months.

A press release stated that the first wave of cuts should take effect in the next 30 days, providing $2.5 million in savings on infrastructure.

“Ever since federal tax reform legislation was passed, our Division of Public Utilities has been working closely with the Public Service Commission and utilities to determine the best method to pass on tax savings to Utah customers. Consumers should begin seeing lower gas bills soon and our Division will continue to ensure other tax cuts reach customer bills as quickly as possible,” stated Chris Parker, Division Director, in a press release.

Additional reductions will follow Dominion Energy’s gas cost filing later this spring. The Division is working with other agencies to immediately reduce base rates to customers by $14.5 million more, the press release stated. -- Feb. 5, 2018 KUTV CBS Salt Lake City article

PacifiCorp (Draper, Utah) – The utility will pass along tax cut savings to customers:

Utah regulators have approved changes to PacifiCorp's electric service rates, reducing them by $61 million through the remainder of this year due to federal tax reform.

Changes in federal tax law passed in December 2017 will reduce rates for customers of PacifiCorp's Rocky Mountain Power division in Utah by a 4.7% overall average, according to the Berkshire Hathaway Energy subsidiary. The Utah Public Service Commission on April 27 ordered the rate cuts to take effect on May 1. PacifiCorp said the average residential customer using 698 kWh a month would see a "tax cut adjustment" on their bill of about $4.17.

The PSC further noted the rate reduction it ordered reflected a substantial portion, but likely not all, of the amount of the 2018 reduction as the company must file a final calculation of the impacts of tax law changes, including the effects of excess accumulated deferred income taxes. PacifiCorp said it will continue to review more complex details of the tax law change and provide the total impact of the new law by June 15, which the company agreed is likely result in additional benefits to customers. – May 21, 2018 SNL Financial Electric Utility Report

Zions Bank (headquarters in Salt Lake City, with Utah branches in Huntington, Castle Dale, Price, Ephraim, Manti, Salina, Santaquin, Payson, Spanish Fork, Springville, Duchesne, Provo, and Fillmore) – Pay raises for more than 40% of employees; $1,000 bonuses for nearly 80% of employees; increased charitable contributions:

Zions Bancorporation (NASDAQ: ZION) announced today that as a result of the Tax Cuts and Jobs Act of 2017, it will be increasing ongoing compensation for more than 40% of its employees as of January 1, 2018, and providing nearly 80% of employees with $1,000 bonuses during 2018, subject to certain conditions.

Additionally, Zions intends to contribute $12 million to the Zions Bancorporation Foundation, which is expected to benefit local communities in which Zions does business. In 2017, Foundation beneficiaries included the United Way, youth programs, food pantries, homeless shelters, affordable housing projects, and educational programs.

Zions expects to incur an increase in noninterest expense in the fourth quarter of 2017 of approximately $12 million as a result of the contribution to the Foundation, while compensation adjustments are expected to be incorporated into 2018 expense. -- Jan. 2, 2018 Zions Bancorporation press release

U-Haul (Utah locations: Centerville, West Valley City, Murray, Midvale, Salt Lake City, Bountiful, Cedar City, Beaver, Hurricane, Parowan, Hildale, Panguitch, Saint George, Enoch, Vernal, Moab, Blanding, Monticello, Loa, Salina, Mount Pleasant, Big Water, Washington, Nephi) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Lowe's -- 2,000 employees at 16 stores in Utah. Employees will receives bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Walmart – 51 locations in Utah -- Over 12,500 Utah-based Walmart and Sam's Club employees are receiving wage increases as well as tax reform bonuses ranging from $200 - $1,000 for a state total of $5.7 million. The starting wage rate was raised for all hourly employees to $11. The company also announced expanded maternity and parental leave, and $5,000 for adoption expenses.

AT&T -- $1,000 bonuses to 423 Utah-based employees. The company also announced a $1 billion increase in capital expenditures nationwide.

Apple (Apple store locations in Farmington, Murray, Salt Lake City) -- $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.

Home Depot -- 22 locations in Utah, bonuses for all hourly employees, up to $1,000.

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

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

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

Ryder (Utah locations: Salt Lake City, Clearfield, Hurricane) -- Tax reform bonuses for employees.

Starbucks Coffee Company (101 locations in Utah) – $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.

McDonald’s (100+ locations in Utah) – 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 

Fort Ranch (Promontory, Utah) - Tax reform bonuses for employees.

Note: If you know of other Utah 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


New Hampshire Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Sunday, December 1st, 2019, 7:37 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 New Hampshire. (Additions to this list can be sent to jkartch@atr.org)

Connection (Merrimack, New Hampshire) -- $1,000 bonuses:

Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading technology solutions provider to business, government, and education markets, today announced that it will pay a $1,000 cash bonus to each employee in consideration of their efforts for the year ended December 31, 2017.

"We are pleased to be able to provide this special reward to our valued employees for their hard work and commitment to excellence," said Timothy McGrath, CEO and President.

The Company is still evaluating all the provisions of the Tax Cuts and Jobs Act enacted on December 22, 2017, which effected numerous changes in existing tax law, including a permanent reduction in the federal corporate income tax rate. The rate reduction takes effect on January 1, 2018, and the Company currently anticipates that the net impact on its tax provision and cash taxes paid will be beneficial. -- Feb. 7, 2018 Connection press release

Franklin Savings Bank -- branch locations in Concord, Bristol, Franklin, Gilford, Merrimack, and Tilton – $1,000 bonuses:

Franklin Savings Bank announced today that it will use a portion of its tax savings to provide employees with a special bonus in recognition of their contribution to the continued success of the bank. FSB will benefit from the reduction in corporate tax rates, and has chosen to share the savings with its employees. All employees will receive a $1,000 bonus.

“Our employees consistently go ‘above and beyond’ for our customers and the communities we serve,” said Ron Magoon, President & CEO. “This bonus is another opportunity to thank them for their outstanding commitment, dedication and service.” – Feb. 26 2018, Franklin Savings Bank press release excerpt

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

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

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

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

Waste Management Inc.  (Multiple locations in New Hampshire) -- $2,000 bonuses:

In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.

“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.

“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10 2018, Waste Management Inc. press release excerpt

Pentucket Bank -- branch locations in Hampstead and Salem -- $500 bonuses, increased wages, and increased educational opportunties.

Apple (Apple store locations in Manchester, Nashua, Salem)  - $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 to 171 New Hampshire employeesNationwide, $1 billion increase in capital expenditures:

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

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

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

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

T.J. Maxx16 stores in New Hampshire – 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

Best Buy -- Nine store locations in New Hampshire -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. Over 100,000 employees 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.Feb. 2 2018, Minneapolis Star Tribune

Granite State Electric (Liberty Utilities) (Salem, New Hampshire) – The utility will pass along tax cuts savings to customers:

In this order, the Commission approves a distribution revenue decrease for Liberty Utilities, passing on to ratepayers the benefits of reduced corporate taxes resulting from recent changes to state and federal tax laws. This order also approves Liberty’s proposal to forego other distribution rate increases that were scheduled to take effect June 1, 2018, as a way to pass additional benefits of corporate tax reductions on to customers. – http://www.puc.state.nh.us/Regulatory/Orders/2018orders/26139e.pdf

Cintas (Chelmsford, New Hampshire) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

Home Depot -- 20 locations in New Hampshire, bonuses for all hourly employees, up to $1,000.

Lowe's --1,000 employees at 13 stores in New Hampshire; Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (Three locations in New Hampshire) – Tax reform bonuses.

CarMax (Location in Manchester, New Hampshire) – $250-$1,500 bonuses depending on length of service:

“The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company.” – Feb 23. 2018, EPR Retail News article excerpt

Walmart - New Hampshire employees at 27 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

Starbucks Coffee Company (Multiple locations in New Hampshire) – $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.

FedEx (Multiple locations in New Hampshire) – 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

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

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

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

Note: If you know of other New Hampshire 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


Missouri Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Sunday, December 1st, 2019, 6:01 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 Missouri. (Additions to this list can be sent to jkartch@atr.org)

State Fair Floral (Sedalia, Missouri) - Expanding operations and renovating/upgrading existing facilities:

“Having the corporate tax rate lowered from 35% to 21% will help us keep our long standing business alive and the ability to expand, renovate, and upgrade to better serve our customers for many years to come.” - Machie Limas, owner of State Fair Floral

Mid-AM Metal Forming (Rogersville, Missouri) – Bonuses for 140 employees:

Mid-AM Metal Forming is giving its 140 employees cash bonuses.

The local company is one of many companies, like Jet Blue and AT&T, giving employees a bonus because of the tax law reform.

"Mid-AM Metal Forming is excited about the positive implications the tax reform package will have both on the manufacturing industry and its employees," President Steve Johnson said in a news release. "We have very dedicated employees that assist in making us a success. We are excited to surprise all of them with this reward.”

The company does metal stretch forming, bending, metal fabrication and painting services, according to the news release, serving aerospace, automotive, marine and architectural purposes. – Jan. 6 OzarksFirst.com article excerpt

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

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

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

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

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

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

Emerson Electric (St. Louis, Missouri) - Increasing employee bonus contributions, expanding family leave benefits, growing retirement funds:

Wage patterns at Ferguson, Missouri-based Emerson, a Fortune 500, diversified manufacturer, illustrate Farr’s point: Pay increased an average of 2.5 percent in 2016, by another 2.9 percent in 2017, and are on their way to increasing by an average of more than 3 percent this year. Plus, the company is boosting its contributions to bonuses and retirement funds and enhancing its family-leave program. - August 6, 2018, ChiefExecutive article excerpt

Iron Horse Energy Services Inc. (Eolia, Missouri) – bonuses for all 93 employees; due to a lower tax burden the company is also continuing to cover 100 percent of healthcare. Said one employee:

“We were also able to maintain 100% payment of Health care even after the astronomical yearly increases created by the affordable care act. We were looking at considerable employee participation in payment of premiums occurring this year.  Thank you Mr Trump for being a business man.”

Liberty Utilities-Empire District (Joplin, Missouri) - The utility will pass along tax savings to customers:

The Missouri Public Service Commission approved a proposal to reduce rates by $17.8 million. The rate decrease reflects a reduction in the corporate tax rate from 35% to 21% as a result of passage of the federal Tax Cuts and Jobs Act of 2017.

For a residential customer using 1,000 kWh (kilowatt-hours) of electricity a month, rates will decrease by approximately $5.16 a month. That decline is effective August 30.

Liberty Utilities-Empire District serves approximately 151,700 electric customers in the Missouri counties of Barry, Barton, Cedar, Christian, Dade, Dallas, Greene, Hickory, Jasper, Lawrence, McDonald, Newton, Polk, St. Clair, Stone and Taney. - August 16, 2018, KY3 News article excerpt

Hunter Chase & Associates (Springfield Township, Missouri) – Employee bonuses; purchase of new trucks and investment in equipment:

Hunter Chase & Associates employs 30 people and provides concrete construction primarily for municipalities in the St. Louis area. The construction management company was able purchase new trucks and handed out bonuses to its employees.

“We reinvested half a million dollars into new equipment trade off and doing deferment of maintenance that we have just not been able to feel like we could afford to do,” Hartman said. – March 15, 2018 Fox Business Network article excerpt

Ameren Missouri (St. Louis, Missouri) - The utility will pass cut savings to customers:

The Missouri Public Service Commission has approved an agreement that reduces the annual electric revenues of Union Electric Company doing business as Ameren Missouri.

The rate decrease of approximately $166,500.000 reflects a reduction in the corporate tax rate from 35 to 21% as a result of the passage of the federal Tax Cuts and Jobs Act of 2017.  Residential customers using 1,000-kilowatt hours a month will see electric rates decrease by about $6.21 per month, effective August 1st. - July 6, 2018, KTTN article excerpt

Dynamic Fastener (Raytown, Missouri) – Employee bonuses of up to $1,000; the company will also open a paint shop, buy new equipment and hire more employees:

Tax reform benefits are reaching ordinary workers at Dynamic Fasteners.

The company sells sheet metal screws and rivets for metal buildings. And the owner anticipates more metal structures being built as the economy takes off.

More than a hundred people work for Dynamic Fasteners, and though it's not a pass through LLC or a corporation that will see the biggest benefits of a 21 percent tax rate, Owner Kevin Perz says he believes the tax cuts will be so good for the economy that he wanted to make sure he rewarded his employees for their loyalty.

"We are giving a maximum of $1,000 per full time employee," Perz said. "It’s $200 for each year or partial year that you’ve been here. If you’ve been here four years and a day you get the thousand dollars. Part time employees get half of that."

Workers will receive their bonus on February 15. That's about the same time workers also should notice a boost in their checks from lowered federal tax rates. Perz says taxes taken from his workers' checks are being reduced by about two and a half percent.

Warehouse workers like Solomon Essex say news of the $1,000 bonus he's getting caught him off guard.

"We all benefit from the economy being better," said Essex, who's worked for the company for 12 years. "For the simple fact that it improves life. It improves everybody's life at the same time. The boost in the economy is a great thing. It is appreciative to I’m sure many people, especially me because it will help me."

The company says it also now will open a paint shop in Las Vegas because of the tax savings it's receiving. That will mean hiring more workers and spending money on new equipment. All good news for an economy that Perz says is starting to boom.  -- Jan. 24 2018, Fox 4 News Article

Hostess Brands, Inc. (Kansas City, Missouri) -- $750 cash bonuses; $500 in 401(k) contributions; free snacks for a year:

Hostess Brands Inc., feeling flush after last month's tax overhaul, will offer bonuses to workers -- including free snacks.

The company, which makes Twinkies, Ding Dongs and Ho Hos, is providing its employees one-time payments of $1,250 -- with $750 in cash and $500 in the form of a 401(k) contribution. In taking the step, Hostess cited last month's tax legislation, which slashed the rate for U.S. corporations.

It's also offering a year's worth of free food to workers -- though they won't be able to eat all the Ding Dongs they like. A representative from each of Hostess's bakeries will choose a product each week, and the employees will be able to take home a multipack of that item. The company also makes Hostess CupCakes, Fruit Pies and Donettes. – Jan. 31, 2018 Bloomberg News article excerpt

Kansas City Power and Light (Kansas City, Missouri): the utility will pass savings from federal tax reform to customers:

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

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

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

The full impact of this tax change will take several months to determine, as any proposed change to customer rates requires the approval of the KCC and MPSC. In addition, in determining how the tax reduction will impact rates, the company will request that regulators review and update all costs necessary to serve its customers.”Jan. 18, 2018, Kansas City Power and Light press release

Kansas City Southern (Kansas City, Missouri) -- $1,000 bonuses for non-executive employees:

Kansas City Southern (KCS) (NYSE: KSU) announced today that in response to congressional passage of The Tax Cuts and Jobs Act of 2017, it will immediately share some of the benefits with qualified, non-executive employees of its subsidiaries in the U.S. and Mexico in the form of a one-time $1,000 bonus payable by the end of 2017.

“Kansas City Southern is pleased with the passage of this legislation and optimistic about what it could mean for our customers, investors and growth in the U.S. economy, as well as trade growth with Mexico.  KCS wants to share the benefit with our employees, who work so hard to serve our customers and increase shareholder value,” said KCS president and chief executive officer Patrick J. Ottensmeyer. -- Dec. 21, 2017 Kansas City Southern press release

Bank of Advance (Advance, Missouri) -- $1,000 bonuses to all staff

Royal Banks of Missouri (Saint Louis, Missouri) – On Feb. 23, 2018, full-time employees received $1,000 bonuses; part-time employees received $500 bonuses. (Senior management did not receive the bonuses.)

Central Bancompany, Inc. (Jefferson City, Missouri) – Bonuses to 2,500 employees: $1,000 bonuses for full time employees; $500 bonuses for part time employees:

In December 2017, U.S. Congress passed a comprehensive tax reform package to encourage economic growth across the nation. As a result of the federal tax reform, Central Bancompany plans to distribute a special bonus to its more than 2,500 employees residing across four states – Missouri, Kansas, Illinois, and Oklahoma. Full-time employees will receive a $1,000 bonus and part-time employees will receive a $500 bonus.

“The economic development that should ensue as a direct result of the new tax reform legislation will positively affect the more than 66 communities we serve,” said Bryan Cook, Chairman and CEO of Central Bancompany, Inc. “We are excited for the opportunity to reward our dedicated and hard-working employees with this special bonus as a token of our gratitude for all that they do for our customers, businesses, and communities.” – Jan. 5, 2018 Central Bancompany press release

Missouri American Water (Joplin, Missouri) - The utility will pass along tax cut savings to customers:

Officials also said the rates reflect $18 million in savings for customers because of the new federal tax cuts program. Missouri American is the first regulated water and sewer company in the state to adjust its customer rates based on the tax cuts. – May 16, 2018, News-PressNow article excerpt

College of the Ozarks (Point Lookout, Missouri) -- $204 bonuses for employees:

College of the Ozarks has decided to issue a check to each College employee in the amount of $204 as a result of savings from the recent U.S. Tax Code revision.

“We were expecting to have to pay the extra amount in Obamacare costs,” said College President Jerry C. Davis. “We are grateful for this savings and want to pass it along to our hard-working employees. It is a simple, but tangible, way to express our appreciation to them. We hope other organizations will consider doing the same.”

Among the changes in the recent revision was the elimination of the “Obamacare” mandate provision, which will reduce the College’s 2018-19 Blue Cross Blue Shield premiums by about 2.7 percent. This one-time premium savings is being passed on to all permanent, full-time employees, each of whom will receive a check near the end of January. – Jan. 18, 2018 College of the Ozarks press release

Commerce Bancshares, Inc. (Kansas City, Missouri) – 3,450 employees will receive bonuses -- $1,000 for full time employees and $250 for part time employees; $25 million in charitable donations:

“The new tax reform legislation should be very positive for economic growth and capital investment which will benefit the banking industry. This new law makes the banking industry more competitive and allows us to reward our core employees who work hard every day to provide superior service to the people and the companies we serve while building long term customer relationships so important to our communities and shareholders. In addition, we are very pleased to provide significant additional funding to The Commerce Bancshares Foundation which will strengthen our ability to continue to support the communities where we do business and whose prosperity is so important to our business.” – Jan. 2, 2018 Commerce Bancshares, Inc. press release

Great Southern Bancorp, Inc. (Springfield, Missouri) -- 1,200 employees to receive a bonus: full time employees receive $1,000 and part time employees receive $500:

"The recently passed tax reform package should have positive implications for the U. S. economy, which we expect will benefit the banking industry, including Great Southern. We are pleased to take advantage of the unique opportunity presented by the tax reform legislation by rewarding our associates with this special bonus.” Jan. 3, 2018 Great Southern Bancorp, Inc. press release

Hawthorn Bank (Jefferson City, Missouri) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees:

Jefferson City-based Hawthorn Bank announced Thursday it will give employees bonuses of up to $1,000 because of the recent tax cut passed by Congress.

Full-time employees will receive bonuses of $1,000, and part-time employees $500. Hawthorn became the second local bank to give bonuses after Congress passed a sweeping tax cut for businesses and individuals in December.

Hawthorn Bank's board of directors approved the bonuses at its January board meeting, said Gregg Bexten, president of Hawthorn Bank's central region.

"It's very emotional for some of these people," Bexten said. "A thousand dollars for a bank teller or customer service representative — that's a lot of money."

With assets of $1.4 billion, Hawthorn Bank employs more than 300 people at 23 branches throughout Missouri. Hawthorn Bank CEO David Turner said in a news release the company expects the tax cut to spur economic development. -- Feb. 2, 2018 Jefferson City News Tribune article excerpt

Home Depot34 locations in Missouri, Missouri-based Home Depot employees will receive bonuses of up to $1,000.

Lowes 6,000 employees at 48 stores and one distribution center in Missouri. 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.

Stifel Financial Corporation (St. Louis, Missouri) – $1,500 bonuses for 7,000 employees:

“This additional $1,500 payment is in recognition of your hard work and efforts this year to make Stifel a success, as well as the positive environment that we anticipate the tax legislation passed this week by Congress will create for Stifel,”[CEO Ron] Kruszewski wrote in personalized emails to salaried employees that greeted them by their first names. -- Dec. 26, 2017 AdvisorHub article excerpt

Tyson Foods Inc. — 5,800 Missourians employed at Tyson Food Inc. will receive tax reform bonuses; $500 bonuses for part-time employees, $1,000 bonuses for full-time employees:

Most of Missouri's 5,800 Tyson Foods workers are expected to get one-time bonuses the week of February 26.

According to a company press release, eligible full-time workers will receive $1,000, and eligible part-time staff will receive $500.

The company operates five plants in Missouri - in Dexter, Noel, Monett, Sedalia and St. Joseph.

Tyson President and CEO Tom Hayes the bonuses are in response to more than $300 million in savings from a federal tax package passed by Congress in December. The plan included a corporate tax reduction from 35% to 21%.”    — Feb. 12 2018, OzarksFirst powered by KOLR 10 News

BancorpSouth Bank – 7 locations in Missouri. Nationally, pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees:

Apple (There are three Apple store locations in Missouri: Kansas City, St. Louis Galleria, St. Louis West County) -- $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 -- $1,000 bonuses to 8,253 Missouri employees; Nationwide, $1 billion increase in capital expenditures.

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

 

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

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

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

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

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

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

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

Walmart138 locations in Missouri -- 25,700 Missourians employed at Walmart 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.

Taco John’s (11 locations in Missouri: Blue Springs, Cape Girardeau, Columbia, Lebanon, Maryville, Odessa, Sikeston, and four locations St. Joseph): 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

Note: If you know of other Missouri 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


Kentucky Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Sunday, December 1st, 2019, 6:00 AM PERMALINK

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.

Below are several examples of tax reform good news in Kentucky (Additions to this list can be sent to jkartch@atr.org)

Owl’s Head Alloys (Bowling Green, Kentucky) - Hiring new employees, expanding facilities:

“Owl’s Head Alloys in my hometown of Bowling Green recently announced a $3 million expansion which would create 17 new jobs, bringing their total employment in the Second District to nearly 100 good-paying jobs. When I visited their facility in March, Owl’s Head owner and president, David Bradford, told me that the economic outlook resulting from the Tax Cuts and Jobs Act helped lead to their decision to expand. This is exactly why we passed the Tax Cuts and Jobs Act: to give American businesses the confidence to grow and expand right in our communities, and to help individual taxpayers keep more of their money.” - May 8, 2018, Rep. Brett Guthrie statement on House floor

Glier’s Meats (Covington, Kentucky) - New hires, wage increases, increased benefit packages, new equipment:

Tax reform means big things for Glier’s Meats of Covington, Kentucky—including multiple wage increases for its employees since the law was passed.

Dan Glier, president of Glier’s Meats, explained the impact on his employees.

“We put in some rather nice wage increases since the first of the year,” he said, explaining how he was handing much of the company’s tax savings back to the 29 employees who help make the company strong.

Glier also added that, for the first time in six years, Glier’s Meats was successful enough to offer comprehensive health benefits to its employees—something it had offered since the 1950s, but had to roll back in recent years due to the economic climate and burdensome health care regulations.

But Glier plans to use his tax savings not just to reward his employees, but to grow and expand his business. Glier’s Meats plans to invest in critical new equipment that will help better position the company for the future—including a $250,000 sausage-stuffing machine that Glier said wouldn’t have happened in 2018 without the savings from tax reform.

More machines, which will double productive capacity while shortening the workday for employees, are also being purchased. Glier also plans to replace all the piping in its Kentucky facility with stainless steel—which Glier said isn’t cheap but will last virtually forever.

These projects are made possible because of the savings Glier’s Meats will see under the tax reform bill. “We had a number of projects that were seen as something we could consider doing down the road,” Glier told us. “But because of tax reform, it’s possible to reinvest in the plant and in new equipment now.”

The big investment in the business also means more hiring: in 2018 alone, Glier’s Meats has grown from 25 employees to 29 employees—and still plans to hire another five in the coming months. That’s an increase of 36 percent.

“Tax reform has changed the economics,” Glier said. “With the ability to recoup taxes, big changes are now possible.” -
June 13, 2018 National Association of Manufacturers Shopfloor Main article

Brown-Forman Corporation (Louisville, Kentucky) – $120 million contribution to the employee pension fund; creation of a charitable foundation with an initial $60 - $70 million contribution.

Paul Varga, Chief Executive Officer of Brown-Forman, said, "These capital deployment actions underscore the strength of the company’s balance sheet and health of our business, and are augmented by the anticipated benefits due to tax reform. – Jan. 23, 2018 Brown-Forman Corporation press release

Atmos Energy (Owensboro, Kentucky) - The utility will pass along tax cut savings to customers: 

“Atmos Energy, which serves western Kentucky, announced in March that it will be cutting the average residential bill by just over 3 percent. Other savings from tax reform will fund infrastructure upgrades across the Commonwealth. Companies in Kentucky have been able to expand their operation because of the Tax Cuts and Jobs Act.” - May 8, 2018, Rep. Brett Guthrie statement on House floor

Computer Services, Inc. (Paducah, Kentucky) – $1,300 cash bonuses for non-executive full-time employees with more than 12 months of service; $650 for part-time employees; additional contribution to employee retirement plan:

As a result of the reduced corporate tax rate effective with the Tax Cuts & Jobs Act (TCJA), Computer Services, Inc. (CSI) (OTCQX: CSVI), a provider of end-to-end financial technology solutions, is using its financial savings to reinvest in its employees and infrastructure.

Recognizing the opportunity brought about by the TCJA, CSI is investing a portion of its corporate tax savings with its employees. Non-executive full-time employees with the company more than 12 months will receive a one-time $1,300 cash bonus in March. Part-time and other employees with the company less than 12 months will receive a one-time cash bonus of $650 also in March. The company also stated that all eligible employees will receive an additional one-time contribution to their retirement plan. – March 5, 2018 Computer Services, Inc. statement

Louisville Gas and Electric Company and Kentucky Utilities Company (Louisville, Kentucky) – the utilities will pass tax reform savings to customers:

If approved by the commission, customers would see nearly $180 million in savings in the form of a reduction on the Environmental Surcharge line item on their bill in March, followed by a new line item credit on the bill based on energy consumption starting in April.

“We had been supportive of the Tax Act all along because of the savings for our residential and business customers, so we are pleased that the commission acted quickly to enable us to deliver these savings so expeditiously. The other parties to this case — the Kentucky Attorney General and the Kentucky Industrial Utility Customers — truly had the customer in mind and a willingness to work together to reach a mutually acceptable solution,” said Kent Blake, chief financial officer at LG&E and KU. “With the colder-than-average winter, and subsequent high energy use, these savings will come at a key time for our customers.”—Jan. 29 2018, Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL corporation press excerpt

Suburban Painting Co. (Lexington, Kentucky) – The painting company was able to create four new jobs and invested in a new truck because of the Tax Cuts and Jobs Act:

Suburban Painting Co., out of Kentucky, recently hired four additional workers and bought a new truck to help it expand its services. April 14, 2019, Fox Business Network article.

Humana (Louisville, Kentucky) – base wage increased to $15 per hour; acceleration of annual performance-based incentive program; additional community investments; accelerated investment in technological and operational processes; earnings benefits for shareholders; more to be announced:

One change with immediate consequences is the new tax reform law which took effect January 1. Like many U.S. companies, Humana will begin benefitting this year from one element of this law: a lower corporate income tax rate. Our steadfast commitment to simplifying the healthcare experience and improving health outcomes for seniors, for TRICARE beneficiaries, and for employer group members remains our top priority, and will guide our decisions as to how to allocate tax-reform proceeds.

We have long recognized that our ability to carry out our commitments to those we have the privilege of serving depends on the collective contribution of every associate. And when Humana achieves sustainable success, we have a greater opportunity to share that success. To further this important connection, it’s my pleasure to let you know that we are:

-Accelerating the previously announced participation of associates in our annual performance-based incentive program from 2019 to 2018. Associates participating in the program will have a minimum incentive target of 4% of their base salary for 2018, with payouts to occur in March 2019.

-Raising the minimum hourly rate in the continental U.S. for full- and part-time Humana associates to $15.

These measures represent our faith in your ability to continue to contribute meaningfully to the health of our members and the growth of our company for many years to come. They also increase your opportunity to participate in being rewarded for our business performance and recognize outstanding contributions that we make to those we serve.

Details on the implementation of these measures will be forthcoming soon. In addition, we will also be sharing with you additional investments that will align around three important Humana priorities:

-Community investments to assist in addressing the social determinants of health for seniors, such as food insecurity, social isolation, and transportation

-Accelerated investments in technology and operational processes to reduce consumer and clinician friction points, increase engagement in health-related activities and increase productivity

-Earnings benefit for our shareholders (including, of course, thousands of Humana associates) – Excerpt from Jan. 15, 2018 letter to associates

Duke Energy Kentucky, Inc. The utility will pass along tax reform savings to customers:

Across the Ohio River in Kentucky, state regulators continue to review the company's proposals that recommend allocating more than $15 million of tax act benefits to Duke Energy Kentucky customers. – April 13, 2018, Duke Energy Press Release

Verst Logistics, Inc. (Walton, Kentucky) -- $500 bonuses to all full-time employees:

Verst Logistics confirmed today that they distributed $500 bonuses to all full-time employees on December 29, 2017.

As part of an internal communication, President and CEO Paul Verst wrote that, as a result of the approved tax reform legislation, "Verst Logistics will realize reduced tax obgligations going forward."  Speaking directly to employees, he added, "The combination of the efforts of our employees to meet and exceed our customer's requirements, coupled with a more favorable tax environment, makes for a great future for our company. I want to be sure that you and your families share in the benefits of your accomplishments and the new tax reform legislation."

In a more recent statement, Paul Verst commented, "We are excited to be included in the growing list of organizations that believe the new tax plan will help our economy by creating new opportunities for business and putting more money in the hands of hard-working people across the U.S." – Jan. 24, 2018 Verst Logistics, Inc. press release

Turning Point Brands, Inc. (Louisville, Kentucky) -- $1,000 bonuses for 107 employees:

"We are giving $1,000 bonuses as a direct result of tax reform becoming law. These employees would not normally get a bonus like this. Our dedicated employees are responsible for our success, and we are very pleased to announce this bonus for them during the holiday season. We are extremely happy with tax reform and wanted our valued employees to feel the benefits. We can attest that this tax package is directly benefiting working people, just as our national leaders promised when they started this effort."

“We especially want to thank President Trump, Senate Majority Leader Mitch McConnell, and House Speaker Paul Ryan for pushing to get tax reform done this year, which allowed our people to immediately feel the impact. Every leader who pushed for and voted for tax reform made these bonuses possible," Wexler said. “Senator McConnell has personally toured our facility in Louisville and we appreciate his interest in our employees and our business as well as his interest in all Kentucky businesses.”

Novelis, Inc. (Guthrie, Kentucky) – Construction of a 400,000-square foot automotive aluminum facility in Guthrie, Kentucky. The facility will create approximately 125 jobs:

Since 2008 manufacturing in the United States has added more than a million new jobs, and today that momentum continued with a major announcement by Novelis, Inc.—spurred on, in part, by the recently enacted tax reform legislation.

The global leader in aluminum rolled products and the world’s largest recycler of aluminum broke ground this week on its $300 million automotive aluminum sheet manufacturing facility in Guthrie, Kentucky. This new investment, made possible due to tax reform and a “favorable economic environment,” will create approximately 125 new jobs. – May 14, 2018 National Association of Manufacturers ShopFloor.org blog post

Community Trust Bancorp (Pikeville, Kentucky) -- $1,000 bonuses for full time employees and $500 bonuses for part-time employees (exact number receiving bonus unknown at this time):

“The bonus will be paid to employees as soon as the new tax tables are released in 2018 so that employees may receive the full benefit of the reduction in tax rates.

“Management and the Boards of Directors continue to believe that our most valuable assets are our employees and are pleased that changes in the tax laws facilitate our ability to recognize their hard work and dedication to the success of CTBI.” – Dec. 22, 2017 Community Trust Bancorp press release

AT&T -- $1,000 bonuses to 2,524 employees in KentuckyNationwide, $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 

Wal-Mart – Kentucky employees at 96 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 -- 14 locations in Kentucky, bonuses for all hourly employees, up to $1,000.

Lowe's -- 6,000+ employees at 42 stores in Kentucky. Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (8 locations in Kentucky) – Tax reform bonuses.

Taco John’s (9 locations in Kentucky): 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

T.J. Maxx – 16 stores in Kentucky – 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

CarMax (Locations in Lexington and Louisville) – $250-$1,500 bonuses depending on length of service:

“The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company.” – Feb 23. 2018, EPR Retail News article excerp

Apple (Apple store locations in Lexington and Louisville) -- $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.

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

In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.

“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.

“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10 2018, Waste Management Inc. press release excerpt

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

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

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

Lowe's -- 6,000+ employees at 42 stores in Kentucky. Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (8 locations in Kentucky) – Tax reform bonuses.

Starbucks Coffee Company (116 locations in Kentucky) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

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

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

FedEx (Multiple locations in Kentucky) – 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 (250+ locations in Kentucky) – 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

Fifth Third Bancorp – 92 locations in Kentucky; Nationally $1,000 bonuses for 13,500 employees and base wage raise increase to $15:

Newly passed tax legislation includes a reduction in corporate tax rates designed to spur economic growth.  Carmichael said the tax cut allowed the Bank the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce.

Carmichael said the higher wage is an important step to help support individuals, their families and the communities in which we operate. Fifth Third has a history of investing in its 18,000 employees.

Once the legislation is signed into law, nearly 3,000 hourly employees will see their pay increase to $15 an hour. The one-time $1,000 bonus is expected to be distributed by the end of the year, assuming the president signs the bill before Christmas. Senior managers and executive leadership are excluded from this compensation.

“It is good for our communities, employees and Fifth Third Bank,” [President and CEO Greg] Carmichael said. – Dec. 20, 2017 Fifth Third press release

First Financial Bancorp (Kentucky locations in Burlington, Fort Mitchell, and Hebron) -- Base wage raised to $15 per hour; $3 million charitable contribution:

First Financial Bancorp (Nasdaq: FFBC) will raise the starting wage for all new and existing hourly associates to $15 an hour effective immediately. Additionally, the bank has made a $3 million contribution to its newly established charitable foundation. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.

First Financial strives to provide fair and competitive salaries and benefits to its associates. Approximately 1,335 associates are employed throughout the First Financial footprint in Ohio, Indiana and Kentucky. The increase will affect 220 of these associates. – Jan. 3, 2018 First Financial Bancorp press release

MainSource Financial Group (15 locations in Kentucky) – Base wage raised to $15 per hour:

MainSource Financial Group (NASDAQ: MSFG) will raise the starting pay and minimum hourly rate to $15 an hour effective immediately for all of its non-exempt, non-commissioned employees. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.

Approximately 1,000 associates are employed throughout the MainSource footprint in Ohio, Indiana, Illinois and Kentucky. The pay increase will affect over 200 employees.

Archie M. Brown, Jr., President and CEO, stated, "The recently passed tax legislation is anticipated to create significant savings for our company. We are pleased to direct a portion of this savings back to many of our employees with a meaningful increase in pay." – Jan. 3, 2018 MainSource Financial Group press release

Note: If you know of other Kentucky 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


Wisconsin Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Sunday, December 1st, 2019, 5:15 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 Wisconsin. (Additions to this list can be sent to jkartch@atr.org)

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

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

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

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

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

Quad/Graphics (Sussex, Wisconsin) - Giving employees stock for their retirement accounts:

Quad/Graphics Inc., the international printing company based in Sussex, said this week that Instead of a one-time bonus, the company will transfer roughly $22 million in Quad/Graphics stock to its employees' retirement accounts.

In his fourth quarter 2017 earnings call with analysts this week, chairman, president and CEO Joel Quadracci said the stock gift was "made possible by tax reform legislation."

"We received a benefit from tax reform and decided it made sense to invest this back into our employee base who is helping drive our transformation as a company," said company spokeswoman Claire Ho.- February 23, 2018, Milwaukee Business Journal article excerpt

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

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

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

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

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

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

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

Americollect (Manitowoc, Wisconsin) $300 - $500 bonuses for 250 employees:

A Manitowoc-based company will give its roughly 250 employees a bonus following Congress's passage of the tax reform bill the Tax Cuts and Jobs Act.

In an email to employees Wednesday, Americollect President and CEO Kenlyn T. Gretz said: “Today, Congress passed the tax reform bill; our company will be taxed less because of it. Since we will now be taxed less, I wanted to take this opportunity and utilize this financial benefit to give back to each of you, our teammates, by directly impacting your paycheck in the form of a bonus!”

Gretz said: “We find great joy in being able to provide this bonus to the employees, who really are the heart and soul of what we do. Full-time employees can expect to see as much as a $500 bonus come 2019 and even part-time employees will be included.” -- Dec. 21, 2017 Manitowoc Herald Times article excerpt

American Family Insurance (Madison, Wisconsin): 11,000 workers will receive a $1,000 bonus:

“American Family Insurance said Friday it will give 11,000 workers a one-time bonus of $1,000, becoming the latest U.S. company to pass some of the savings from federal tax reform to employees.

The Madison-based insurer said the reduction in the corporate income tax rate also would help fuel permanent changes to its employee benefits program, such as expanded tuition reimbursement, help paying student loans and scholarships for workers who pursue a post-high school degree.

In addition, American Family said its family leave program now will provide employees with paid leave to care for an ill child of any age or for a spouse or domestic partner.

 “Our success rests with our people who are dedicated to helping our customers,” Bill Westrate, American Family Insurance president, said in a statement. “These changes demonstrate our commitment to our people, today and into the future, with expanded benefits and educational support, and to the communities where we do business.”

American Family said Friday the company will contribute $10 million to its Dreams Foundation, which supports programs and provides grants to nonprofits. This year, American Family said, the foundation will provide a one-time, two-to-one match for employee and agent donations to qualifying charities, a boost from the one-to-one match in place since the Dreams Foundation was established in 2016. – Jan. 26 2018, Milwaukee Journal Sentinel article excerpt

 

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

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

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

…..

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

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

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

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

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

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

Madison Gas & Electric (Madison, Wisconsin) - The utility will pass along tax cut savings to customers:

Madison Gas & Electric will return a one-time credit of $9.23 to its residential electric customers and $4.80 to natural gas customers by July 31. After that, electric bills will dip about $1.56 a month and gas bills by about $1 a month in 2018, MGE spokesman Steve Schultz said. That totals about $8 million worth of credits, according to PSC calculations.

The money represents excess taxes the companies have been collecting from ratepayers. Utility rates, set in advance, anticipated a 35 percent corporate tax rate. But Congress, in its tax reform package, lowered the rate to 21 percent. – May 26, 2018 Wisconsin State Journal article excerpt

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

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

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

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

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

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

....

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

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

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

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

Alliant Energy, Wisconsin (Madison, Wisconsin) - The utility will pass along tax cut savings to customers:

Alliant said its retail electric costs will rise by a total of $194 million in 2019 and 2020 as it brings on the 700-megawatt, natural gas-fueled West Riverside power plant near Beloit in the second half of 2019.

Alliant’s natural gas expenses are projected to rise $24 million over that period.

But rather than raising customer rates, the utility said it will cut costs via fuel savings and income tax reductions. - May 26, 2018 Wisconsin State Journal article excerpt

Superior Water, Light & Power (Superior, Wisconsin) – the utility will pass along tax reform savings to customers:

Residential customers of Superior Water, Light & Power will receive a $31.80 lump-sum credit on July bills as a result of savings accrued from the tax law Congress passed last year, according to an order issued Thursday by the Public Service Commission.

Customers in all categories will receive lump-sum and ongoing credits for each provided service. The largest electrical customer will receive a $61,807 lump sum credit and other non-residential customers will receive lump-sum electric credits varying from $13.70 to $3,106 depending on customer classification, according to the PSC order.

SWL&P estimated its total customer credits this year at $1.322 million. – May 29, 2018, Superior Telegram article excerpt

We Energies (Milwaukee, Wisconsin) – the utility will pass along tax reform savings to customers:

We Energies electric customers will receive a one-time credit in July and a slight decrease in electric rates in subsequent months from a portion of the savings from the company's lower federal corporate tax rate, state regulators decided on Thursday.

The Public Service Commission determined that 20 percent of the immediate savings from the lower tax rate should be passed on to customers.

The remaining 80 percent of the savings will go toward paying down deferred costs that stood at $424.5 million as of Dec. 31 but that are not included in current rates.

"It will be a win-win for our customers — providing an immediate bill credit while also helping to reduce future rate increases," Cathy Schulze, a We Energies spokeswoman, said in an email.   - April 26, 2018, Milwaukee Journal Sentinel article excerpt

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

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

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

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

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

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

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

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

Blue Harbor Resort (Sheboygan, Wisconsin) -- $1,000 bonuses:

The Forsythe Family today dedicated a one-time cash bonus of $1,000 to each eligible Blue Harbor employee.

The Forsythe Family’s financial dedication to Blue Harbor employees is in direct response to President Trump’s Tax Cuts and Job Act of 2017. – Jan. 25, 2018 MySheboygan.com article excerpt

Copperleaf Assisted Living (Stevens Point, Wisconsin) –  $200 - $600 bonuses for 175 employees:

An assisted-living business will give its 175 employees bonuses up to $600 as a result of the tax reform package passed by Congress and signed by President Trump on Friday.

Krista Mendyke, who owns Copperleaf Assisted Living with her husband, Jim, said they will give away all of the company's estimated tax savings as a result of the legislation.

Copperleaf, which is based in Stevens Point, also has facilities in Schofield, Marathon City, Ripon and Adams.

"It's really to bring awareness to what's going on in our country and how it impacts them ... and that businesses and corporations do want to do the right thing," Mendyke said Friday.

Every employee will receive a bonus, which will start at $200 and be tiered based upon the worker's status of casual, part-time or full-time. About 60 full-time employees will receive the maximum bonus of $600, she said.

Mendyke said she and her husband will visit each facility on Tuesday to hand out the bonus checks.

In total, they are giving away $60,000 in bonuses, "our entire tax savings" estimated for 2018 based on changes to business income tax rates, she said.

"I called (our accountant) yesterday and I said, what does this mean for us, a company our size?" Mendyke said Friday. "They sent us a projection and we're going to go ahead and pass that on." Dec. 22, 2017 Stevens Point Journal article excerpt

CUNA Mutual Group (Madison, Wisconsin) – $20 million in charitable contributions:

"CUNA Mutual Group said Tuesday the company is making its largest contribution ever to its philanthropic foundation, a $20 million donation made possible in part by federal tax reform." -- Feb. 13 2018, Journal Sentinel article excerpt

BMO Harris Bank200 locations in Wisconsin -- base wage raised to $15 per hour; increased charitable donations:

“BMO Harris Bank has joined an increasing number of financial institutions in raising its minimum hourly wage to $15.

The bank cited the recent federal tax reform, which lowered the corporate income tax rate, in its decision to boost employee compensation.

The new rate is effective immediately, the company said Tuesday. BMO Harris, which is based in Chicago and owned by Toronto's BMO Financial Group, has more branches than any other bank in Wisconsin.

BMO Harris also said it will increase its level of philanthropic community giving by 10% in 2018.

“We’re pleased to share the benefits of the strong economic conditions, and the effects of the recent tax reform changes, with our employees and communities,” David Casper, president and chief executive of BMO Harris Bank, said in a statement. “Our success is tied directly to the communities we serve, and we’re proud of the exceptional job our employees do in providing a great customer experience.” – Jan. 31 2018, Milwaukee Journal Sentinel article excerpt

Johnson Bank (Racine, Wisconsin) – base wage raised to $15 per hour.

North Shore Bank (Brookfield, Wisconsin) -- $500 bonuses.

Plexus Corp. (Neenah, Wisconsin) – cash bonuses for non-executive employees:

“In order to reward employees for their contributions towards Plexus’ success, Plexus will provide existing, full-time, non-executive employees a one-time cash bonus.  This bonus will be provided in the fiscal second quarter to nearly 16,000 employees, totaling approximately $13 million.” – Feb. 20 2018, Plexus press release excerpt

Robert W. Baird & Company (Milwaukee, Wisconsin) – Cash bonuses of up to $1,500; charitable contributions:

“Milwaukee's Robert W. Baird & Co. said it will pay cash bonuses of $500 to $1,500 to employees, joining the list of Wisconsin companies passing along some of the benefits of federal tax reform to their workers.

All full-time and part-time benefit-eligible employees of the financial services firm — except company leaders — will receive a $1,500 one-time cash bonus. Other part-time associates and long-term interns will receive a bonus of $500, Baird said.

Baird leaders will receive the benefit in the form of a $1,500 donation to the charity of their choice, which could amount to an additional $1.2 million being contributed to the community in 2018, the company said.

The one-time benefit will be awarded to Baird's more than 3,500 global employees and amounts to more than $5 million.” – March 2 2018, Milwaukee Journal Sentinel article excerpt

AT&T -- $1,000 bonuses to 2,684 Wisconsin 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

Home Depot -- 27 locations in Wisconsin, bonuses for all hourly employees, up to $1,000.

Lowe's -- 1,000 employees at 8 stores and one distribution center in Wisconsin. 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.

Apple (Apple store locations in Glendale, Madison, and Wauwatosa) -- $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.

Walmart – 89 stores in Wisconsin; Bonuses of up to $1,000; base wage increase for all hourly employees to $11; expanded maternity and parental leave; $5,000 for adoption expenses.

Wells Fargo – 51 locations in Wisconsin; raised base wage from $13.50 to $15.00 per hour; Nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

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

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

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

Ryder (Fourteen locations in Wisconsin) – Tax reform bonuses.

Starbucks Coffee Company (145 locations in Wisconsin) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

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

McDonald’s (325+ locations in Wisconsin) – 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 

Note: If you know of other Wisconsin 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


West Virginia Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Sunday, December 1st, 2019, 4:30 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 West Virginia. (Additions to this list can be sent to jkartch@atr.org)

Eagle Manufacturing (Wellsburg, West Virginia) – Creating new jobs and purchasing new equipment:

The company traditionally has sought to buy used equipment at low prices when replacement of machinery was necessary, according to Trimmer.

“Because of that tax break, we can invest and buy our next machines,” he said. “My department is now looking to buy a $2 million machine, rather than a 1990 classic. It will pay for itself in a short manner of time.”

Trimmer said the company is about to sign some government contracts that will put Eagle cabinets and metal products on the next generation of U.S. naval destroyers.

This could result in as many as 25 jobs being created, he said. – May 3, 2018, The Intelligencer article excerpt  

Doss Enterprises (Jane Lew, West Virginia) – Hiring new employees and purchasing new equipment:

The benefits of the Tax Cuts and Jobs Act are evident just from looking around the Doss facility, Capito said.

“When I saw their board of (new) hires, there must have been 20 or 30 names on there, just April and May,” she said.

The company has chosen to reinvest its tax savings in its employees and into new equipment, Capito said.

“All of the employees are seeing (it) in their paychecks,” she said. “(Doss) has also bought some new equipment with his money, which is a great investment. He’s going to be hiring at least another 30 people.” – May 2, 2018, WVNews.com article excerpt

Warwood Tool (Wheeling, West Virginia) – Creating a new line of products:

The tax cuts have given the company and its customers enough optimism for the future that Warwood Tool is developing a new line of products. – May 3, 2018, The Intelligencer article excerpt

West Virginia American Water (Charleston, West Virginia) – The utility will pass tax savings on to customers:

West Virginia American Water Company announced a settlement plan last week which — if approved by the PSC — would result in an average savings of $3.77 a month for water and sewer customers in the state.

Panhandle Cleaning and Restoration (Wheeling, West Virginia) – Purchasing new trucks and equipment:

While Panhandle is often called upon for clean-up services after national disasters, Contraguerro told Jenkins the company relies on its day-to-day operations. Their employees, trucks and equipment are called to local homes and businesses each day following water-line breaks or other incidents, and Panhandle doesn’t wait for hurricanes to hit, he said.

The company plans to invest the money it receives from the tax cuts into more trucks and equipment.

“We will be reinvesting in the business,” he told Jenkins. “There is a huge benefit to reinvesting.” -- May 3, 2018, The Intelligencer article excerpt

Potomac Edison (Martinsburg, West Virginia) - The utility is passing on tax savings to customers:

‘More than 85,000 Potomac Edison customers in the Eastern Panhandle should see lower bills in the coming weeks thanks to federal tax reforms adopted in December.

The West Virginia Public Service Commission announced Friday that it approved rate reduction settlements for utility companies totaling almost $85 million annually, starting next month.

"Bottom line: starting Sept. 1, the tax reduction will lower bills for typical ... residential customers by nearly $2 per month," FirstEnergy spokesman Todd Meyers wrote in an email on Friday. FirstEnergy is the parent company of Potomac Edison.

"That means our average residential customer using 1,000 kilowatt-hours per month will see their monthly (bill) fall to $108.25 from $110.22," - August 24, 2018, Herald Mail Media

Davis Trust Company (Elkins, West Virginia) - 3% across the board pay raises (on top of existing compensation structure.)

Appalachian Power Co. (Milton, West Virginia) – the utility will pass along tax reform savings to customers.

Appalachian Power Company saved $235 million dollars from the federal tax cuts and the company is proposing passing the money back to its customers in a variety of ways.

The multi-pronged proposal is in a filing with the state Public Service Commission due Wednesday. The PSC is requiring all utilities to tell it their tax cut savings and what they plan to do with it.

West Virginia Consumer Advocate Jackie Roberts told MetroNews the money clearly belongs to the customers.

“They (the utilities) had taxes in their rates and now the taxes in their rates have significantly decreased—so they shouldn’t be able to keep collecting and keeping those higher taxes in their rates,” Roberts said.

Appalachian Power Company Communications Director Jeri Matheney agrees–the $235 million Appalachian Power will save belongs to its customers.

“It is customer money. What we propose to do is provide a method to keep rates as stable as possible over the longterm and as much as possible eliminate the need for rate increases,” Matheney said.

The Appalachian Power distribution proposal for West Virginia customers includes:

–$131 million to completely offset the company’s fuel and vegetation control program funding request that was part of an April filing with the PSC

–$19 million reduction in the company’s base rate case filed earlier this month (taking the $115 million request down to $96 million)

             –$51 million to reduce next year’s fuel recovery cost rate case

              –$1 million for a pilot economic development grant                           program                                 

–$30.1 million to return to customers over the next three years – May 30, 2018, MetroNews article excerpt

U-Haul (81 locations in West Virginia) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Citizens Bank of West Virginia (Elkins, West Virginia) -- $1,000 bonuses for all 66 employees:

Citizens Bank of West Virginia issued a bonus of $1,000 to each of their 66 employees, joining a number of U.S. companies to pass along savings from the federal tax reform to its staff. The announcement was made in a surprise staff meeting by the bank’s president & chief executive officer.

“One of the best investments we can make is in our employees who are dedicated to making sure our customers have great banking experiences at Citizens,” said President & CEO Nathaniel S. Bonnell. “This $66,000 investment demonstrates our thanks and appreciation to our team for their tireless efforts and commitment to the bank.”

The bank’s board of directors said it was an easy decision to reward the dedicated and hard-working employees of Citizens Bank. “There are several ways we will put the tax savings to work for Citizens,” stated Board Chairman Max L. Armentrout. “However, we are most excited about paying this bonus to the great employees we have working at our bank, serving our customers and shareholders.”

Employee reaction was overwhelming as they were excited to have $1000 checks arrive the same day as the announcement.

“This was totally unexpected!” said Assistant Trust Officer Crystal Kimbleton as she choked back tears. “This check will definitely help with upcoming high school graduation and college expenses.”

“It’s the best day ever!” exclaimed Alec Rader, Deposit Operations Administrative Assistant. “One thousand dollars, a pizza luncheon – this is not how I was expecting this day to go; what a great surprise!”

Head Teller Amanda Riffle stated she was totally speechless and shocked. “This money is going to go a long way in helping me pay down my college loan. It’s greatly appreciated!”

“I’m so grateful and it’s so amazing!” stated teary-eyed Mortgage Loan Processor Anita Jones. “I am going home to Indonesia this summer and this money will help tremendously with the cost of that trip!” Anita has not been home in nine years.

Lisa Plum, Deposit Operations Administrative Assistant II, says the employees of Citizens couldn’t ask to work for a better organization. “This was just wonderful news. I’m now going to be able to take a vacation this year that was not going to happen. We are so fortunate to work for a bank that cares so much for their employees.”

The overall sentiment of the employees throughout the bank was shock and gratitude. – Feb. 2018 Citizens Bank of West Virginia statement

Walmart – West Virginians employed at 43 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

AT&T -- $1,000 bonuses to 880 West Virginia employeesNationwide, $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

Home Depot - Six locations in West Virginia, bonuses for all hourly employees, up to $1,000.

Lowe's -- 2,000 employees at 18 stores in West Virginia. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/paternal leave; $5,000 of adoption assistance. 

Ryder (Three locations in West Virginia) -- Tax reform bonuses for employees.

Starbucks Coffee Company (25 locations in West Virginia) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

T.J. Maxx – Four stores in West Virginia – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:

The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:

Associates

  • A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
  • An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
  • Instituting paid parental leave for eligible Associates in the U.S.
  • Enhancing vacation benefits for certain U.S. Associates

Communities

Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt

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

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

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

FedEx (Multiple locations in West Virginia) – Accelerated and increased compensation; pension plan contributions:

“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:

  • Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
  • A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
  • Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.

FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release

McDonald’s (101 locations in West Virginia) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:

McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.

The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.  

“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”

Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:

  • Increased Tuition Investment:
    • Crew: Eligible crew will have access to $2,500/year, up from $700/year.
    • Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
    • Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
  • Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
  • Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
  • Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
  • Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.

“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”

After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt

Note: If you know of other West Virginia 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


Morning Consult Poll of Trump Voters: "Flavor Ban Could Cost Him Tenth of His Voters"

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch, Paul Blair on Wednesday, November 27th, 2019, 5:30 PM PERMALINK

"11% who voted for Trump say they'd be less likely to vote for 2020 candidate who backs flavored e-cigarette ban"

"Trump's advisers have reportedly sowed fear that a ban could wreak havoc on his re-election effort in 2020. And according to new Morning Consult data, the administration may have cause for concern."

11 percent of Trump voters are less likely to vote for a 2020 candidate who backs a ban on flavored vaping products, according to a just-released Morning Consult poll.

Morning Consult stated:

"In a Nov. 22-24 survey of 1,988 voters, roughly 1 in 10 Trump 2016 voters said a 2020 presidential candidate backing a ban on flavored e-cigarettes would be less likely to win their vote, with 8 percent saying they would be 'much less likely' to vote in favor of that candidate. The sample of 677 Trump voters has a margin of error of 4 percentage points."

Americans for Tax Reform president Grover Norquist said in response to the poll findings:

"This poll showing the power of the vaping issue in driving how millions of Americans will vote confirms that people vote on issues of immediate and personal impact. The anti-vaping prohibitionists are threatening the lives of those Americans who use vaping as their way to stop smoking. They won’t go back without a fight.

"Woe to the politician who stands between the 10 million vapers and their choice for life and health. Americans want to be left alone to run their own lives and to protect their own health. Vapers have made a decision to stop smoking and choose the healthier path of vaping. Woe to the politician who stands between any American and their desire to lead a healthier, longer life."

Paul Blair, director of strategic initiatives at Americans for Tax Reform issued the following statement:

"Today's Morning Consult poll further validates what we have long said about the importance of vaper voters as a political constituency in 2020. The fact that 11 percent of Trump voters will be less likely to vote for the president next year if he implements a ban on most vapor products demonstrates that this issue could easily and singlehandedly cost him the election in states like Michigan, Wisconsin, and Pennsylvania."

Blair continued:

"This poll follows an October poll conducted by Trump campaign pollster John McLaughlin that showed 83% of adult vapor product consumers in the 17 battleground states in 2020 are likely to decide their vote based solely on a candidate’s position on nicotine vapor products and issues. That poll also showed that 74% of adult vapers would be less likely to vote for the President if he implemented a vape ban. McLaughlin concluded, 'The vapor consumers in Trump’s base would likely turn on him over this single issue.' Today's Morning Consult poll shows that an even broader constituency than vapers themselves may turn on the President over this issue.

Vaping is a political issue for more than 13 million adults because so many of them have successfully used these reduced risk alternatives to cigarettes to quit smoking. When you jeopardize people's livelihoods by threatening kill 150,000 jobs and put at risk the improved health of millions of adults by threatening to take away their access to e-cigarettes, you will lose votes. Personal health is a political issue and prohibition is a losing proposition."

The following groups and individuals oppose a ban on flavored vaping products for adults:

American Conservative Union
Americans for Tax Reform
Heritage Action
Independent Women's Forum
FreedomWorks
Goldwater Institute
Citizens Against Government Waste
Competitive Enterprise Institute
Becky Norton Dunlop, Heritage Foundation's Ronald Reagan Distinguished Fellow
60 Plus Association
Freedom Foundation of Minnesota
Hispanic Leadership Fund
James Madison Institute
Pelican Institute for Public Policy
Mackinac Center for Public Policy
Montana Policy Institute
R Street Institute
Reason Foundation
Rio Grande Foundation
Taxpayers Protection Alliance
American Consumer Institute
Consumer Choice Center
And many others: click here to see a conservative coalition letter to President Trump urging him to oppose a ban.

Many left wing politicians want to impose a flavored vape ban including Chuck Schumer, Michael Bloomberg, Dick Durbin, Rashida Tlaib, Patty Murray, and pretty much everyone in charge of San Francisco.

Also of note:

Conservatives Oppose Flavored Vape Ban

Moms to Trump: Don't Ban Flavored Vapes

Vape flavor ban will devastate Main Street businesses nationwide

Testimonials from adults who need flavored vapes to stay off cigarettes            

If you don't understand the power of the flavored vape issue, watch this video

Vape ban could swing election against Trump

Sen. Ron Johnson letter to Trump: A flavored vape ban would harm public health and wipe out small businesses nationwide

NYT Editorial Board and Conservatives Agree: A Vape Ban is Bad for Public Health

WaPo: Vapers are "Astroturf" and Should Probably Die in Darkness

 

 


Delaware Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, November 27th, 2019, 11:15 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 Delaware. (Additions to this list can be sent to jkartch@atr.org)

Green Recovery Technologies, LLC (New Castle, Delaware) — $1,000 bonuses for all seven employees:

"We are a startup waste-to-value biochemical company of seven that believes in the direction the country is going and that our best days are ahead of us. These tax reductions benefit our workers by providing an instant no cost wage hike. Paying the bonuses in a low tax environment was an easy decision for GRT since we know that this low cost capital is being invested in the local community where it will be spent on goods and services as well as being by employees into their retirement savings accounts.” — Kenneth Laubsch, President and CEO, Green Recovery Technologies, LLC

Delaware Supermarkets Inc. (Wilmington, Delaware) -- $150 extra bonuses to 1,000 non-management personnel.

“Our ability to provide bonuses and training to our employees demonstrates the far-reaching implications of this tax reform. We have a renewed optimism for the local and the national economy, and this important legislation better positions us for future growth.” – Christopher Kenny, CEO

 “This legislation benefits those of who count on Main Street budgets for our livelihoods, and it’s a privilege to share the benefits with the men and women who work so hard at ShopRite. It makes it possible to succeed in a very competitive industry.” -- Melissa Kenny, director of sales and marketing

Navient (Wilmington, Delaware) – 98% of Navient’s 6,700 employees will receive a $1,000 bonus (approx. 6,566 bonus-eligible employees):

Crediting the new corporate tax rate recently approved by Congress, approximately 98 percent of Navient employees across the country received a $1,000 bonus just before the holidays.

Navient has approximately 6,700 employees nationwide, including more than 900 in Hanover Township, company officials say.

According to a memo from Jack Remondi, Navient president and CEO, the firm announced it will pay a $1,000 bonus to all non-officer employees.

--

Colleen Hughes, an instructional design specialist — she works behind the scenes in the training department — said co-workers “cheered and hollered” when they read their emails.

“And it came right before the holidays,” said Hughes, 33, of Dupont. “I literally started to cry. I was shocked. I have a 3-year-old and I overspent for the holidays. This really helped me out.”

As news of the $1,000 bonuses made its way through Navient, Hughes said people became emotional.

“I know I feel I’m valued that we were even considered,” Hughes said. “We all feel valued by the company — that we all are a valuable asset to the company. So much so that they recognize our talent and dedication.” -- Jan. 2, 2018 Wilkes-Barre Times Leader article excerpts

Mountaire Corporation (Millsboro, Delaware) – $1,000 or $500 bonuses based on length of service; increased 401(k) matches:

Mountaire had an amazing year in 2017. We are blessed with great people and great opportunities. Our performance is outstanding and the blessings of Jesus Christ are all around us to enjoy.

I am very encouraged that the President of the United States and the Republican Congress have reduced taxes for businesses and individuals for 2018. I am extremely excited about what this new change means to our company and all Mountaire employees.

Very soon you should see the impact of the new lower tax rate in your paychecks.

Additionally, because of this new tax reduction, I am pleased to announce that on February 2, 2018, Mountaire is going to pay a one-time discretionary bonus to hourly employees. This bonus will be subject to normal taxes and distributed to all full-time Mountaire hourly and piece rate employees as follows:

  1. $1,000 for all active full-time hourly and piece rate Mountaire employees with more than 180 days of employment as of January 27, 2018.
  2. $500 for all active full-time hourly and piece rate Mountaire employees with between 91 and 179 days of employment as of January 27, 2018.
  3. $500 for all active full-time hourly and piece rate Mountaire employees with between 1 and 90 days of employment as of January 27, 2018. This group of employees will receive their bonus money as soon as they have completed their first 90 days of employment.
     

I have also decided to make significant improvements to our 401k savings plan. Effective November 1, 2018, Mountaire’s 401k match will be increased to 100% of the first 3% invested, and 50% of the next 2% invested. And also, effective November 1, 2018 you will be given immediate vesting on 401k matching monies.

All these improvements are being done because of the Tax Reform and Tax Cut passed by the Republicans in Congress and signed into law by our President.

I am very optimistic about our performance and the future of Mountaire and our country.

May God continue bless us and guide us! -- Jan. 26, 2018 letter to employees from Ronald M. Cameron, Chairman

Delmarva Power (Newark, Delaware) – the utility will pass along tax reform savings to customers:

Tax cuts passed by Congress in December have effectively caused Delmarva Power to reduce its power rate increase request in Delaware by $26 million, the company announced on Friday. – February 9, 2018 Delaware Online excerpt

Harvard Business Services, Inc. (Lewes, Delaware) – $1,000 bonuses for all full-time employees:

“Harvard Business Services, Inc., located in Lewes, Delaware, has just announced it will join many companies nationwide and award all full-time employees with an immediate $1,000 bonus in their next pay check in order to augment their tax savings.

Mike Bell, Vice President and Director of Marketing, announced the bonus, saying, “We appreciate the great job you do, and the dedication you show our clients every day. Keep up the good work.” – Jan. 26 2018, Harvard Business Services, Inc. press release

T.J. Maxx – 3 stores in Delaware – 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

Home Depot -- 9 locations in Delaware, bonuses for all hourly employees, up to $1,000.

Lowe's -- 1,000 employees at 10 stores in Delaware. 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.

AT&T -- $1,000 bonuses to 124 Delaware employees; Nationwide, $1 billion increase in capital expenditures.

Cintas Corporation (Seaford, Delaware) -- Bonuses for 38,000 employees; $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

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

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

Ryder (Delaware location: Wilmington) -- Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in Delaware) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave. 

U-Haul (Multiple locations in Delaware) – $1,200 bonuses for full-time employees, $500 for part-time employees; nationally, over 28,000 workers will receive a bonus.

Wal-Mart – 9 locations in Delaware -- Walmart employees are receiving tax reform bonuses. Nationally, 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.

Wells Fargo – 18 bank locations in Delaware; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

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

Apple (Apple store in Newark, Delaware) -- $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:

     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

Note: If you know of other Delaware 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


Montana Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Sunday, November 24th, 2019, 10:01 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 Montana. (Additions to this list can be sent to jkartch@atr.org)

Rod’s Harvest Foods (St. Ignatius, Montana) – 3-5% pay raises; base wage raised to $11 per hour; bonuses up to $500:

We are happy to share with our employees the anticipated tax saving for 2018 realized by the Tax Reform bill recently passed by the US Congress and signed by President Trump. We are excited about the benefits it will provide for our country’s economy, our store, and our employees.  As a result of the tax savings expected in 2018, we will be passing this savings on to our employees. We will be raising wages 3-5% and entry wage to $11 an hour (non-student).  Also, please accept this bonus as a gesture of appreciation for your hard work and loyalty to Rod's Harvest Foods. You are our most valuable resource! – Rod Arlint, Rod’s Harvest Foods, note to employees

Westland Seed (Ronan, Montana) - hiring new employees:

Businesses such as Westland Seed in Ronan — another stop on Gianforte’s tour — said they are hiring more employees because of the Tax Cuts and Jobs Act. - May 4, 2018, Daily Inter Lake article excerpt

 

Lewis & Clark Brewing Co (Helena, Montana) - hiring new employees:

At Lewis and Clark Brewing Co., Pigman expects to save $25,000 this year because of the provision in the tax reform that he said brewers like him have been working to get for three years.

The money is going to hiring — an employee was brought on last week and Pigman is looking for two more full-time positions each in production and sales. - May 6, 2018 Helena Independent Record article excerpt

TrueNorth Steel (Billings, Montana) - Creating 35 new jobs. 

Anchor Electric (Wye, Montana) - Expanding business operations, hiring additional employees:

At Anchor Electric, Rosendale said company owner Paul Lindstrom told him that the tax reform package allowed him to expand his businesses and hire about 10 additional employees. - August 9, 2018, Missoulian article excerpt

AT&T -- $1,000 bonuses to 686 Montana employees; Nationwide, $1 billion increase in capital expenditures.

Loenbro (Great Falls, Montana) - Increasing worker benefits, enhancing training programs, purchasing new equipment:

“Other Montana businesses are making investments thanks to tax reform. Loenbro, a Great Falls industrial construction and manufacturing firm that employs more than 600, said the tax reform immediately added 15 percent to their bottom line. Tax reform is leading them to increase worker benefits, enhance training programs, and invest in construction equipment that will create more jobs. - June 19, 2018, Rep. Greg Gianforte statement on U.S. House Floor

Billings Flying Service (Billings, Montana) -  Purchasing new equipment, investing in research:

“Billings Flying Service credits the full expensing provision for its decision to purchase new equipment. The company is also investing in new research and development for enhanced firefighting equipment.” - June 19, 2018, Rep. Greg Gianforte statement on U.S. House Floor

Rock 31 (Billings, Montana) - The Tax Cuts and Jobs Act Opportunity Zones are estimated to bring 95 new jobs to the city:

Under President Trump's Tax Cuts and Jobs Act of 2017, downtown Billings was able to receive a grant from the U.S. Department of Commerce of $2 million as the area qualifies as an Opportunity Zone.

Opportunity Zones are given grants in an attempt to spur economic development by giving tax incentives to investors in economically distressed communities nationwide. 

The Opportunity Zone for this project is the Montana National Bank located on 201 N Broadway. The bank will be renovated to house Rock 31 Connect Build and Grow which will provide technical assistance, skills training, hiring resources and more to those embarking on new business ventures.

"This is really designed for people who are taking a big risk and jumping into developing their product, their service any type of early stage high growth company know that this is a space you can come learn from our mentors, learn from our Rock 31 team and connect with like minded individuals," says Program Manager Kevin Scharfe.

Rock 31 is projected to foster nearly two dozen business startups which are expected to create 95 jobs and generate $6.6 million in private investment which would bring change to the community. Dec. 3, 2019, KULR article.

NorthWestern Energy (Butte, Montana) – The utility is passing tax reform savings to its customers:

The tax savings stem from the Republican Tax Cuts and Jobs Act, which Congress passed in December and was signed into law by President Donald Trump. Federal corporate tax rates fell from 35 percent to 21 percent.

Regulated utilities like NorthWestern cannot pocket the savings, which must be shared with ratepayers, who also pay the utilities' taxes. NorthWestern has about 345,000 customers in Montana. 

NorthWestern is proposing that its natural gas customers receive direct refunds for the entire $3.154 million in tax breaks associated with the utility’s natural gas business. The company’s electric customers would receive half of the $10.8 million in tax breaks associated with NorthWestern’s electric business. Half the money would be spent removing hazard trees that pose a fire or outage risk.

“With what we proposed, for a natural gas customer, it would be about $1.18 a month. An electricity customer would be 67 cents per month,” said Butch Larcombe, NorthWestern spokesman. – April 3, 2018 Billings Gazette article excerpt

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

Walmart - Montana employees at all 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.

Dollar Tree, Inc. (Montana locations in Billings, Butte, Bozeman, Dillon, Great Falls, Havre, Helena, Kalispell, Miles City, Missoula, Whitefish) -- Base wage increases and enhanced employee benefits including maternity leave.

Home Depot - Six locations in Montana, bonuses for all hourly employees, up to $1,000.

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

Lowe's -- 700 employees in five stores in Montana. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/paternal leave; $5,000 of adoption assistance. 

Ryder (Billings, Montana) -- Tax reform bonuses for employees.

Starbucks Coffee Company (36 locations in Montana) – $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 – 6 stores in Montana – 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.S. Bank (25 branch locations in Montana) – $1,000 bonuses for employees; base wage raised to $15 per hour; increased charitable contributions.

“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, quoted in a Jan. 2, 2018 U.S. Bank press release

Taco John’s (21 locations in Montana): 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

FedEx (Multiple locations in Montana) – 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 (45+ locations in Montana) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:

McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.

The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.  

“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”

Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:

  • Increased Tuition Investment:
    • Crew: Eligible crew will have access to $2,500/year, up from $700/year.
    • Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
    • Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
  • Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
  • Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
  • Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
  • Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
     

“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”

After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt

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

Wells Fargo - 34 banks in Montana, raised base wages from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other Montana 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


Massachusetts Examples of Tax Reform Good News

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Saturday, November 23rd, 2019, 11:30 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 Massachusetts. (Additions to this list can be sent to jkartch@atr.org)

Pan Am Systems, Inc. (North Billerica, Massachusetts) -- $1,100 tax reform bonuses for 719 employees.

Pan Am Systems, Inc. is a diversified holding company. Its subsidiaries include Pan Am Railways – the nation’s largest regional rail carrier by mileage operating in five states; Perma Treat Corporation – a wood products manufacturer, including railroad ties, and Pan Am Brands, a trademark licensing company.

In an effort to highlight the benefits of the landmark Tax Cuts and Jobs Act (“TCJA”), Pan Am Systems, Inc. is pleased to announce that it will be issuing a one-time bonus of $1,100.00 to each employee of the company and its subsidiaries, effective today. This bonus is intended to; (a) acknowledge the importance of our employees; and (b) provide those employees with additional compensation to use as they elect.

As noted by the President, the TCJA is intended to make resources available for investment by businesses that will have downstream effects of expanding and creating wealth among all citizens. Pan Am shares this goal and is committed to future capital investment to foster growth of the company. Pan Am strongly believes that programs such as the TCJA and the 45G tax credit, supported by continued reduction in overly burdensome regulations, provide substantial incentives for investment in America’s growth. – May 23, 2018 Pan Am Systems, Inc. press release

Pentucket Bank (Haverhill, Massachusetts) – $500 bonuses, increased base wages, increased additional educational opportunities through a University of Pentucket Bank program.

Suffolk Construction (Boston, Massachusetts) - Investing in new technology and data analytics:

Boston’s Suffolk Construction Co. will take much of the savings from the tax cuts and invest it in the company’s technology and data analytics, a growing area of focus for the $3.5 billion business, CEO John Fish said. The firm is one of the largest privately owned companies in Massachusetts. As of last year, it had nearly 1,000 employees in the state. On the topic of one-time bonuses for employees, Fish told the Business Journal that “to give a $1,000 bonus, that’s a traditional response to a nontraditional opportunity. We have an opportunity now to invest in our future.” - January 22, 2018, Boston Business Journal article excerpt

1A Auto, Inc. (Westford, Massachusetts) -- Bonuses for all full-time employees:

Massachusetts based online auto parts retailer 1A Auto announced across the board cash bonuses for all full-time employees. CEO Rick Green says that the decision was based on recent changes to tax policy. In a company meeting Wednesday, Green told employees, "Ultimately the tax savings will be passed to our customers in the form of lower prices, but we want to also share some of the savings with you, our hard-working employees." -- Jan. 25, 2018 1A Auto, Inc. press release

Thermo Fisher Scientific (Waltham, Massachusetts) -- $500 bonuses for 68,000 non-executive employees; increased charitable donations:

Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, will make additional investments totaling $50 million as a result of the benefit of recently enacted Federal tax reform legislation in the U.S. This investment includes:

$34 million for a one-time bonus of $500 to be paid to each of the company's approximately 68,000 eligible non-executive employees globally.

$16 million to accelerate key breakthrough R&D programs and also to increase the impact of the company's sustainability initiatives and philanthropic activities in support of STEM (Science, Technology, Engineering and Math) education.

"Thermo Fisher will benefit from tax reform, so we chose to use this unique opportunity to recognize the commitment of our colleagues who work hard every day to fulfill our Mission – to enable our customers to make the world healthier, cleaner and safer," said Marc N. Casper, president and chief executive officer, Thermo Fisher Scientific. "We also plan to use the benefit to fuel important programs that will strengthen our ability to serve our customers and the communities where we live and work." -- Jan. 31, 2018 Thermo Fisher Scientific press release

Unitil (Fitchburg, Massachusetts) - The utility will pass along tax cut savings to customers:

Unitil, which serves about 45,000 electric and gas customers in Massachusetts, said it expects to rebate customers about $1.6 million in tax savings. The company, which owns Fitchburg Gas and Electric Light Company, is one of the few utilities that isn’t seeking a rate increase this year. - June 30, 2018, The Daily News article excerpt

Cooperstown Environmental (Andover, Massachusetts) - Doubled the company-paid retirement contribution for all employees.

Pilgrim Bank (Cohasset, Massachusetts) - Base wage raised to $15 per hour; additional 401(k) contribution; increased charitable donations. 

State Street (Boston, Massachusetts) – Enhanced employee retirement benefits and investment in training and community grant programs:

State Street will use this year's proceeds from the US tax overhaul measure to improve    employees' retirement benefits and training and community grant programs, the              company's chairman and chief executive said. – Jan. 23 Dow Jones Newswires report

The TJX Companies Inc. -- Holding company for TJ Maxx, Marshalls, HomeGoods, Sierra Trading Post, Homesense -- (Headquarters in Framingham, Massachusetts, with many retail locations across the state) – the companies gave tax reform bonuses to employees, increased retirement fund contributions, paid parental leave and increased charitable contributions:

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

The Stowaway (Mattapoisett); Speedwell Tavern (Plymouth); Gateway Tavern (Wareham); Sail Loft (Dartmouth) and Duck Inn Pub (Hyannis) -- $500 bonuses for full-time employees; $200 bonuses for part-time employees. Altogether at these affiliated restaurants, bonuses went to 93 employees:

All of the partners expressed the same reasoning for the bonuses, according to the release. They were happy to be able to share the tax savings by investing in their workforce. They recognize their people as their most important asset. They viewed the payouts as a way of giving back to their staffs, thanking them for everything they contribute to their organization’s success. The thought process was that the bonus checks will also benefit the local communities through employees spending more, boosting the area economically, according to the release. – Feb. 16, 2018 Wicked Marion Local article excerpt

STERIS Corporation (Northborough, Massachusetts) -- $1,000 bonuses:

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 press release

National Grid (Waltham, Massachusetts) – The utility will pass along tax savings to customers:

On the heels of expansive federal tax reform, National Grid will request a reduction in its pending natural gas distribution rate proposal with the Massachusetts Department of Public Utilities.

When federal tax reform legislation was signed into law in late December, the company began assessing how reductions in corporate tax rates could benefit customers. The company announced today it will update its rate proposal with the DPU for natural gas rates that will go into effect in October 2018: reducing the original $87 million request to an estimated $51 million.

“We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills,” said Cordi O’Hara, president and COO of National Grid in Massachusetts. “We’ll continue to seek opportunities to provide this benefit to all of our customers.” – Jan. 11, 2018 National Grid press release

Eversource Energy (Boston, Massachusetts) – The utility will pass along tax savings to customers:

The newly passed federal tax law reduces the amount of taxes Eversource will be paying by millions of dollars and today the energy company has informed the Department of Public Utilities of its decision to voluntarily pass those savings along to customers.

“We believe it’s important that our customers reap the benefit of a lower tax rate,” said Eversource Massachusetts Electric Operations President Craig Hallstrom. “As a regulated power company our rates are based on our costs, including federal taxes, so if taxes are reduced ultimately costs are reduced and that benefits our customers.”

For example, customers in the company’s Eastern Massachusetts service territory will see a reduction in taxes of $47.6 million. This will cause a rate reduction of approximately $35.4 million, rather than the approved increase of $12.2 million (per the rate case decision Nov 30th). For Western Massachusetts, customers will benefit from a reduction in taxes of $8.3 million, reducing the approved increase of approximately $24.8 million to $16.5 million. -- Jan. 4, 2018 Eversource Energy press release

Blue Hills Bancorp Inc. (Norwood, Massachusetts) – $1,000 employee bonuses; total bonuses $70,000:

In addition, and as a result of the Tax Act, the Company recorded an expense of $70,000 in the fourth quarter of 2017 related to awarding a $1,000 bonus to each employee with a functional title below the Assistant Vice President level. The Company also took action to raise the hourly pay rate to $15 for a small number of hourly employees not already at that pay level. – Jan. 29, 2018 Blue Hill BanCorp Inc. press release

Dyer Capital Management, Inc. (Marion, Massachusetts) – Base wage raised 3.5% to $22 per hour; hourly employees also received a special one-time bonus:

In keeping with the economic prospects of the Tax Cuts & Jobs Act of 2017, Dyer Capital Management Inc. (DCM) has announced a special one-time bonus payable this month to each of its hourly employees. Also, the company is increasing the minimum hourly rate 3.5% to $22 an hour. President Timothy H. Dyer said: “In the spirit of shared success, we are pleased to reward our hourly workers with this good news now, as we anticipate brighter, future conditions for our economy and our country.” – Dyer Capital Management, Inc. press release

AT&T -- $1,000 bonuses for 874 Massachusetts-based 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

Fidelity Bank (Leominster, Massachusetts) – Base wage raised to $14.25 and to $15 by 2020; increased community contributions through LifeDesign Community Dividend, hiring of new employees, investment in new technology tools and equipment, and new facility projects:

Fidelity Bank headquartered in Leominster with 10 full-service offices in central Massachusetts, is sharing the benefits it receives from the corporate rate going from 35 percent to 21 percent with its employees, clients, and community. In doing so, Fidelity Bank is leading the way for smaller, local community banks in Central Massachusetts to use tax savings in positive ways.

“We see tax reform as an opportunity to show our deep commitment to our three key constituencies –our valued employees, our community, and our clients” says Edward F. Manzi, Jr. Chairman and CEO of Fidelity Bank. 

The local community bank will give all staff below the Vice President level a bonus of $500. Officials have decided to increase the minimum wage at Fidelity Bank to $14.25 per hour with a commitment to reach $15 per hour by 2020. Fidelity Bank is also allocating additional funds to its annual LifeDesign Community Dividend, investing the additional money in specific causes that support their community and the markets in which they operate. Examples include mental and physical health care; affordable housing; children’s education and support; and cultural organizations. Further, the bank’s 2018 plan includes investing in the hiring of new employees, new technology tools and equipment, and several facility projects including new LifeDesign Banking locations in downtown Worcester and Gardner – all to bring the value of the LifeDesign promise more effectively to more current and future clients.” – Feb. 14, 2018 Fidelity Bank press release excerpt

HarborOne Bank (Brockton, Massachusetts) – $500 bonuses to 600 bank employees; base wage raised to $15 per hour:

“The immediate outcome of this legislation will be tax savings for HarborOne, which has a direct impact on our bottom line,” CEO James Blake said. “It’s only fitting that this financial gain be shared with our employees.” – Dec. 28, 2017 Boston Herald article excerpt

Meridian Bancorp, Inc. (Boston, Massachusetts) – Base wage raised to $15 per hour; additional 20% will be added to existing bonuses; increased capital spending including building six new branch locations; additional charitable contributions:

Meridian Bancorp, Inc. (the "Company" or "Meridian") (NASDAQ:EBSB), the holding company for East Boston Savings Bank (the "Bank"), following the new tax law being passed by Congress and signed by the President on December 22, 2017, announced the following enhanced commitments to the Bank's employees, infrastructure investment and charitable giving which will benefit its customers and the communities it serves:

  • The minimum wage for all employees will increase to $15 per hour
  • An additional 20% will be added to the 2017 bonus as part of the Bank's Incentive Compensation Plan that will be paid to the Bank's 500+ employees in January 2018
  • An increase to the Capital Spending Budget as a result of plans to build six new branch locations in 2018
  • An increase in charitable giving by targeting $1 million in donations to community and non-profit organizations in 2018 – Jan. 3, 2018 Meridian Bancorp, Inc. press release excerpt

Apple (Apple store locations in Boston, Braintree, Burlington, Cambridge, Chestnut Hill, Dedham, Hingham, Holyoke, Lynnfield, Marlborough, Natick) - $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.

Berkshire Hills Bancorp Inc. (Pittsfield, Massachusetts) – Base wage raised to $15 per hour; $1,000 bonuses to over 1,000 employees; investments in employee development and training; $2 million in additional charitable giving:

Berkshire Hills Bancorp, Inc. (NYSE: BHLB), the parent of Berkshire Bank, today announced additional investments in its employees and communities following the recent passage of federal tax reform legislation. 

            These investments include:

  • Raising Berkshire's minimum wage to $15 per hour.
  • Providing a special, one-time bonus of $1000 to over 1000 employees. This grant benefits all full-time employees below a certain compensation threshold, covering over 70% of the Bank's workforce, and augments the special $500 holiday bonus these colleagues received in the fourth quarter.
  • Enhancing Berkshire's investment in employee development and training programs to benefit our employees and bolster our current offering at AMEBU – American's Most Exciting Bank University.
  • Contributing $2 million to the Berkshire Bank Charitable Foundation which supports charitable organizations, scholarships, and volunteerism across Berkshire's local communities. This will bolster the foundation's endowment and allow for increased local giving. Last year we provided over $2 million to our local communities, complementing our employee volunteer program which helps our employees contribute over 40,000 hours of volunteer service each year. -- Jan. 4, 2018 Berkshire Hills Bancorp Inc. press release


Adams Community Bank (Adams, Massachusetts) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees; base wage raised to $13.25 per hour; other wage increases; increased charitable contributions, increased capital expenditures, and more:

Adams Community Bank today announced investments in its employees, customers, and the Berkshire community following the recent passage of federal tax reform legislation.

These investments include:

  • Paying a special one-time bonus of $1,000 to full time employees, and $500 to part time employees. This initiative is focused on those employees making below a certain compensation threshold.
  • Increasing base pay by $1 per hour for regular non-officer employees making below a certain compensation threshold.
  • Raising our minimum wage to $13.25.
  • Reducing the employee’s share of medical and dental insurance premiums from 30% to 20%, for all bank employees who are not officers.
  • Increasing interest rates on customer deposit products beginning in January.

In addition, during 2018 Adams Community Bank will be upgrading our website, ATM’s and streamlining account-opening processes.

Finally, the Bank anticipates having more money to use for our long-standing goal of donating 10% of net income each year to local charitable and non-profit initiatives.

“The recent change to the Federal tax law offered a unique opportunity to assess how we can use this savings to improve our community,” said Charles O’Brien, President and CEO. “The bank will benefit from the lowering of corporate tax rates and as a true community bank headquartered in the Berkshires we would like to pass along these savings right here at home by investing in our staff, our customers, and the local community. These initiatives will put more money into the pockets of our employees, our customers, and the local non-profit community which will serve to benefit the Berkshire economy. We are thrilled that more than 80% of our staff will be positively impacted by these changes. In addition we are planning to add to our staff during 2018 by hiring several employees to better serve our growing customer base.”

O’Brien also noted “these compensation changes are in addition to the full complement of benefits the bank offers including an existing incentive plan for all staff, our pension and 401(K) plans, life insurance, tuition reimbursement, employee wellness, and more. Some banks have eliminated or scaled back on some of these benefits but we strive to attract the most talented staff. Our entire salary and benefit package is the most competitive offered by any community bank within Berkshire County.” -- Jan. 25, 2018 Adams Community Bank press release 

Waste Management, Inc. (Multiple locations in Massachusetts) –  $2,000 bonuses:

Waste Management, Inc. (NYSE: WM) announced today that, in light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee non on a bonus or sales incentive plan; that includes hourly and other employees. 

"We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans," said Jim Fish, president and chief executive officer, Waste Management.

“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy," he continued. 

Approximately 34,000 qualified Waste Management employees could receive this special bonus. – Jan. 10, 2018 Waste Management, Inc. press release

Walmart –  Massachusetts employees at 49 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.

T.J. Maxx – 52 stores in Massachusetts – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations.

Home Depot -- 45 locations in Massachusetts, bonuses for all hourly employees, up to $1,000.

Lowe's --3,000+ employees at 27 stores and one distribution facility in Massachusets. 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.

CarMax (Four locations in Massachusetts) – $250-$1,500 bonuses depending on length of service:

The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company. – Feb. 23, 2018 EPR Retail News article excerpt

Rollstone Bank & Trust (Leominster, Massachusetts) -- Increased charitable contributions:

“As a bank invested in our communities, RBT takes great pride in supporting local organizations that make a positive impact on so many people. The United Way of North Central Massachusetts is one of those organizations,” said Martin F. Connors Jr., president and CEO of Rollstone Bank & Trust. “We are fortunate to have such great health care in our area, and are pleased we can help them continue their mission.”

Connors added that recently implemented reductions in the corporate tax rate will allow RBT to give back to an even greater extent than it has in the past.

“The tax cut provides us the opportunity to continue and even expand our investments in our region, customers, and employees,” he said. - May 17, 2018 Leominster Champion article excerpt

Ryder (15 locations in Massachusetts) – Tax reform bonuses for employees.

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

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

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

Starbucks Coffee Company (Multiple locations in Massachusetts) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

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

FedEx (Multiple locations in Massachusetts) – 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 (250+ locations in Massachusetts) – 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

Note: If you know of other Massachusetts 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


Pages

×