House Democrats Vote Against Middle Class Tax Cuts

House Democrats voted against several Republican proposals to permanently cut taxes for the middle class.
The Democrat-controlled House Ways and Means Committee debated four pieces of legislation this week with very little public notice. Republicans offered numerous pro middle-class amendments, but Democrats shot down every proposal.
Republicans offered amendments to make the Tax Cuts and Jobs Act’s middle-class tax cuts permanent. If adopted, these amendments would have meant a permanent:
- Doubled standard deduction: this expansion resulted in dramatic tax reduction for the 105,055,150 million taxpayers that took it before the passage of tax reform, a number that has only increased since the TCJA became law.
- Doubled child-tax credit: this expansion benefited over 22 million American middle-class families that claim the child tax credit.
- Individual rate cuts: a family of four earning the median income of $73,000 is seeing a federal tax cut of $2,000, while overall tax liability has dropped by almost 25 percent, according to a report from H&R Block.
All of these provisions have helped middle-class Americans, and Democrats were unanimous in opposing them.
Democrats also unanimously opposed repealing the Medical Device Tax, an Obamacare holdover that devastated the American healthcare system while it was in effect. The medical device tax was in effect from 2013 and 2015 but Congress has suspended the tax since 2016. When it was in effect, research indicates that the tax reduced research and development by $34 million in 2013 and disproportionately harmed companies with lower profit margins. This resulted in a loss of approximately 28,000 jobs.
Finally, Democrats unanimously voted against cutting taxes for Americans with high medical bills. Before Obamacare, families facing high medical bills could deduct expenses that exceeded 7.5 percent of their AGI. According to the IRS, approximately 10 million families took advantage of this deduction each year before Obamacare was signed into law. In 2010, the average taxpayer claiming the deduction earned just over $53,000 annually.
Obamacare increased the threshold to claim the medical expense deduction to 10 percent of AGI. The TCJA restored the pre-Obamacare 7.5 percent threshold, but House Democrats opted not to make that increased threshold permanent.
Every time Democrats had the opportunity to extend or make middle-class tax cuts permanent, they refused. The next time Democrats tell you that they are for cutting taxes for the middle class, remember this week’s votes.
Photo Credit: Gage Skidmore
List of Tax Reform Good News

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

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

Today, Americans for Tax Reform joined a coalition of free-market organizations warning Congress of potential new government price controls on America’s freight railroads.
In a letter, the coalition emphasized the importance of the upcoming Surface Transportation Board (STB) hearing on railroad revenue adequacy and urged Congress to provide “close oversight of the STB and its remaining authorities.”
Specifically, the signed groups raised concerns regarding the STB’s possible changes to revenue adequacy determinations that may be used to create new heavy-handed railroad regulations. Such changes could allow the government to determine that a railroad is earning excessive revenue and consequently serve as justification for instituting a new price control mechanism to set maximum freight weights. Using revenue adequacy in this manner would run counter to the deregulatory agenda that saved the private railroad industry from the brink of collapse during the 1970s.
The letter's signers point to comments submitted to the STB by authors of a 2015 study produced at the request of Congress. These comments highlighted several concerns with STB’s proposal including:
- Arbitrary calculations: “The proposal would establish rate increase caps based on the relationship of a shipper’s rates to a benchmark calculated using costs derived from the inherently arbitrary Uniform Rail Costing System (URCS) and arbitrary allocations of profits that exceed the cost of capital.”
- Divorced from economic reality: “We are deeply concerned that this approach creates a rate increase constraint that is divorced both from economic reality and from a well-articulated goal that the proposal is designed to achieve.”
- Contrary to stated intent: “This proposal could move STB rate regulation in the direction of public utility regulation rather than the protection of captive shippers.”
To see the full content of the letter, please click here.
Photo Credit: Luke Jones
Virginia Examples of Tax Reform Good News
Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Virginia. (Additions to this list can be sent to jkartch@atr.org)
Deckscapes (Catharpin, Virginia) - Employee pay raises, purchased new trucks, started a new bonus structure and employee IRAs:
“With repealing of regulations and renewed optimism, business has grown considerably over the last year and now with this tax cut, gee-whiz, just the other day we went out with a minimum of 7 percent pay raise to our employees, some of them got higher. We changed our bonus structure, we’re starting IRAs for all the employees, and went out and purchased a bunch of trucks.” - April 17, 2018 Tax Talk Roundtable, Gary Desilets, Owner of Deckscapes
Port City Brewery (Alexandria, Virginia) -- Because of the Tax Cuts and Jobs Act, the company was able to pay employees more, offer better benefits, and buy more equipment:
At Port City, which opened in 2011 and is the oldest packaging brewery in the Washington, D.C.-area, the lower rate amounted to annual savings of roughly $50,000, Butcher said. With that money, Port City was able to pay its employees more, provide them with better benefits, including the employer match for retirement, and add more tanks and automation, he said.
"All those things have become much easier with this lower tax rate," Butcher said. -- Sept. 26, 2019 Washington Examiner
Control Automation Technologies Corporation (Providence Forge, Virginia) - Expansion doubling current facility size, hiring new employees, purchasing new equipment:
Control Automation Technologies Corporation (CATC) has announced the expansion of its Virginia Laboratory as it plans to double the size of its existing facilities in New Kent County, VA.The expansion will include offices, laboratories, and a logistics warehouse to accommodate its growing customer base as well as new equipment, services and employees.
With the recent economic boom, expansion was inevitable", said Mike Watson, the company's founder and CEO. Watson also touted regulation and tax reform as key catalysts for its decision to expand now. - August 1, 2018, Control Automation Technologies Corporation press release excerpt
Bay Electric Co., Inc (Newport News, Virginia) – Hiring new employees and purchasing new equipment:
Business owners at the event said the recent tax law has allowed them to increase capital investment, hire more people and give bonuses.
“This year, we are hiring 12 electricians and have added two project managers to our senior team,” John Biagas, president and chief executive of Bay Electric Co., told the audience. “Plus, the new tax law accelerated our plan to invest over $500,000 in new trucks and equipment.” – April 17, 2018 Morning Consult article excerpt
sweetFrog Frozen Yogurt (Richmond, Virginia) - growing exponentially — adding new stores, serving countless new customers.
I can certainly speak for my business, which has never seen better days. In large part due to the federal tax overhaul, sweetFrog Frozen Yogurt is growing exponentially — adding new stores and serving countless new customers.
In 2009, sweetFrog opened its first store in Richmond. Less than a decade later, we now have more than 350 locations worldwide. By the end of the year, we expect to have more than 400 open locations.
During the first quarter of 2018, sweetFrog franchise owners opened new locations in states including Maryland, Tennessee and Virginia, so it’s undeniable that federal tax cuts had a positive effect. –September 21, 2018 – The Viriginia Pilot ( Guest Columnist Patrick Galleher CEO of sweetFrog Frozen Yogurt)
K-VA-T Food Stores (Abingdon, Virginia) - Increased employee wages, expanded employee benefits:
Tax reform enabled K-VA-T Food Stores, the parent company of Food City, to give raises to 25% of its workforce, a total boost to the payroll of $1 million. It also improved its benefits package for employees and can continue some health benefits that had been under stress due to soaring health insurance costs. - April 13, 2018, Augusta Free Press article excerpt
EnerVest (Abingdon, Virginia) - Employee bonuses:
EnerVest, an oil and gas company with a presence in Southwest Virginia and around 95 employees in the Commonwealth, paid more in bonuses at the end of 2017 and provided a larger average pay increase to its employees than it had in prior years. The company attributed part of its decision to the lift provided by tax reform. - April 13, 2018, Augusta Free Press article excerpt
Payne Trucking (Fredericksburg, Virginia) – Bonuses of $750 for employees of at least five years; $500 for employees of at least a year; $250 for employees of at least six months:
A longtime Fredericksburg-area business owner is giving 81 employees a one-time bonus as a result of the Tax Cuts and Jobs Act passed by Congress in December.
“We were so pleased with the tax relief that we got that we had to share it,” said Danny Payne, head of Payne Trucking Co. “There were tremendous savings in tax relief.”
Employees at the company’s locations in Massaponax and Dundalk, Md., who’ve worked for Payne at least six months received an extra $250 in their paycheck Jan. 26. Those who’ve worked there for at least a year got $500 and those who’ve been there at least five years got $750. Senior management and part-timers weren’t eligible. – Feb. 8, 2018 Fredericksburg.com article excerpt
Sports Clips -- Debra Sawyer, franchise owner (Richmond, Virginia) - Expanding operations, hiring new employees:
“I’m a franchisee. I have 20 open locations and I have my 21st location that will open sometime this summer. Earlier this year I already bought out one of my friends in Florida. She wanted to relocate to the Carolinas to be closer to her kids. So I’m very grateful that the new tax law allows us that clear opportunity to write off not only newly acquired assets that are a brand new purchase but also ones that are used when you’re buying an existing business out from someone else…And then after the [tax reform] bill was passed and I was kind of looking at my tax situation another opportunity came to me to go for my 22nd location. I went ahead and took that because I was comfortable with the tax write offs that I could do. That lease is with my attorney right now for review and I’m hoping to get that location open as well which will let me promote one of my assistant managers to manager, and it will also let me hire at least ten more employees.” - April 17, 2018 Tax Talk Roundtable, Debra Sawyer, Sports Clips Franchisee
Dollar Tree, Inc. (Headquarters in Chesapeake, and many retail locations statewide) – $100 million investment in raising base wages and enhanced benefits including maternity leave:
As noted previously, the Company benefited in the fourth quarter and fiscal 2017 with respect to the TCJA. The Company expects to continue to benefit going forward and currently estimates the benefit to be approximately $250 million for fiscal 2018. As a result of the estimated cash benefit, the Company plans to invest approximately $100 million through the following actions:
- Invest in stores with more hours, including training for associates,
- Invest in people with increased average hourly rates,
- Add Family Dollar eligible associates to the Defined Contribution Plan starting in fiscal 2017 and increase contributions in fiscal 2018, and Establish paid maternity leave for eligible associates -- March 7, 2018 Dollar Tree, Inc. press release excerpt
Huntington Ingalls Industries (Newport News, Virginia) -- $500 bonuses:
Workers at Huntington Ingalls Industries will receive a one-time bonus in the company’s response to the federal Tax Reform Act.
A $500 bonus will be given to all employees except for those who work through an incentive plan.
HII is the parent company of Ingalls Shipbuilding, which employs about 11,500 workers and is the largest manufacturing employer in Mississippi.
HII President and CEO Mike Petters announced the news Thursday in a letter provided to the Sun Herald.
Huntington Ingalls also made a significant incremental contribution to its pension fund—adding $200 million—as a way of providing for its employees’ futures. While many pension funds across the nation face insolvency, Huntington Ingalls is well funded.
The bonus one of several contributions the company plans to make, according to Petters’ letter. – Feb. 15, 2018 Sun Herald article and May 8, 2019 National Association of Manufacturers Shop Floor Blog
Stafford Bounce n Play, LLC (Stafford, Virginia) -- $1,000 mid-year bonuses for all employees:
By working to pass tax reform, these representatives helped my wife and me to make positive steps in both our business and in our relationships with our employees. Stafford Bounce n Play strives to be the best we can be, ensuring that our employees feel valued and appreciated day-in and day-out.
Thanks to the tax savings the new plan provided, we were able to do so by distributing a $1,000 mid-year bonus to each of the hardworking people who work for us. This kind of investment in our employees—and in-turn our community—is the kind of action that Virginia and America needs for long-term prosperity. We expect to see growth this year because of our U.S. representatives’ efforts. – Nicholas Bluma, Stafford Bounce n Play, LLC, March 9, 2018 Inside NOVA
Virginia American Water Company (Alexandria, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Aqua Virginia, Inc (Rockville, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Columbia Gas of Virginia (Chester, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Virginia Natural Gas (Virginia Beach, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Roanoke Gas (Roanoke, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Appalachian Natural Gas (Abingdon, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Virginia Electric and Power Company (Richmond, Virginia) – The utility will pass tax cut savings on to customers:
The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.
To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.
The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release
Nexus Services, Inc. (Verona, Virginia) – 5% raise for all employees; 200 more workers will be hired in 2018:
All Nexus Services, Inc. employees will receive a 5% raise, starting in January 2018, CEO Mike Donovan announced today. Also, Nexus unveiled plans to hire another 200 workers over the course of 2018 – doubling the size of Nexus Services, Inc. workforce nationwide. Many of the new jobs will be created in Virginia's Shenandoah Valley and other jobs will be in San Juan (Puerto Rico), Hackensack (NJ), Ontario (CA) and other sites nationwide.
The 5% boost in pay will come on top of the increased take home pay that workers will enjoy due to lower Federal income tax rates for individuals.
The more than 200 new jobs Nexus plans to create over the next 12 months will each have a "living wage" and provide full benefits including, health, dental, vision, and retirement plans.
A combination of an improved business outlook for 2018 and tax reform by Congress has enabled Nexus Services, Inc. to make these generous changes. – Dec. 21, 2017 Nexus Services Inc. press release
CarMax Inc. (Headquarters in Richmond, and 10 retail locations statewide: Charlottesville, Dulles, Fredericksburg, Harrisonburg, Lynchburg, Newport News, Virginia Beach, Midlothian, Glen Allen) – $250 - $1,500 bonuses:
The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company. – Feb 23. 2018, EPR Retail News article excerpt
RDR, Inc. (Centreville, Virginia) – Bonuses of up to $1,000 for all 125 employees:
RDR, Inc. A professional services firm headquartered in Centreville, Virginia with a Branch office in Southern Pines, North Carolina and individual employees nationwide is announcing that it will be paying bonuses to each of its 125 employees as a result of anticipated 2018 tax savings from the recently passed Tax Cuts and Jobs Act of 2017.
It has been said that all U.S. workers would see financial benefits in February from the tax cuts that passed in December and we are determined to make this true for all our employees right now! – Jan. 19 2018, RDR, Inc. press release excerpts
Great Southern Wood Preserving, Inc. (Wood treatment plant in Rocky Mount, Virginia) -- Significantly increased employee benefits: lower healthcare costs, more paid time off, and scholarships; supply store location in Rocky Mount, Virginia:
Great Southern Wood Preserving, Incorporated, has begun an active and ongoing process to increase employee benefits by reinvesting its tax savings in its people, the company has announced. The company expects full implementation to take place in 2018.
In late 2017, Congress passed and the President signed into law legislation providing significant tax breaks for corporations. Across America, many companies have chosen a variety of options for applying these savings, such as providing one-time bonuses to employees, increasing charitable giving and reinvesting in facilities upgrades.
For its part, Great Southern Wood will make investments on an ongoing basis to lower healthcare costs for eligible employees, allow employees to accrue more paid time off based on length of service, develop scholarships for dependents of employees and enhance other benefits going forward.
“I’m very pleased that every employee across the company will see the results of the change in tax laws,” said Jimmy Rane, Great Southern Wood’s founder, president and CEO. “The success we’ve enjoyed as a company comes from every one of us working hard and doing our part, and I can’t think of a better way to apply our tax savings than by further investing in benefits programs for our employees. We strive to be an employer that draws the best and brightest to our company, and we believe that providing stronger benefits is essential to this continuing effort.”
Great Southern employs almost 1,200 at locations in eleven states. [Texas, Missouri, Arkansas, Georgia, Alabama, Mississippi, Louisiana, Pennsylvania, Virginia, Maryland, Florida] -- March 29, 2018 Great Southern Wood Preserving, Inc. press release
Eberle Communications Group, Inc. (McLean, Virginia) -- Increased 401(k) match from 25% to 50% for all 45 employees.
Bank of the James (Lynchburg, Virginia) - Raised base wage to $15 per hour for employees with more than one year of service.
Capital One (McLean, Virginia) - Base wage raised to $15 per hour. The news was announced to associate on Tuesday January 9, 2018.
First Sentinel Bank (Richlands, Virginia) – $750 cash tax reform bonus:
A tax reform bill signed by Pres. Donald Trump in December 2017 has resulted in a local company giving employees a one-time bonus.
Called a Tax Cut Bonus, First Sentinel Bank, based in Richlands, Va., is sharing its savings from tax reform with employees.
The board of directors of First Region Bancshares and its subsidiary, First Sentinel Bank, made the announcement Friday that “all employees of the bank will receive a one-time cash bonus of $750 each in recognition of their continued hard work, dedication, and contributions to the ongoing success of the bank.” – March 26, 2018 Bluefield Daily Telegraph article excerpt
F&M Bank (Timberville, Virginia) – Tax reform bonuses of up to $1,100:
Employees of F&M Bank were surprised on Tuesday to learn they would receive a bonus, which the institution attributes to additional earnings expected as a result of the GOP tax plan.
"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President Neil Hayslett. "Rather than just banking all that, so to speak, we wanted to share it with the employees."
The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.
Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750. – Feb. 20, 2018 WHSV 3 article excerpt
First Bank and Trust Company (Abingdon, Virginia) -- Base wage raised to $15 per hour.
Information First, Inc. (Manassas, Virginia) $500 cash bonus for all 15 employees.
Altria Group Inc. (Richmond, Virginia) – $3,000 bonus to approximately 7,900 non-executive level employees, a total of $24 million in bonuses; increased charitable contributions:
Altria Group Inc., one of the Richmond area’s largest private employers, says it is giving all of its non-executive employees a one-time $3,000 bonus, thanks to the corporate tax cut passed by Congress in December.
The Henrico County-based parent company of cigarette maker Philip Morris USA said it also plans to set aside $35 million over three years for philanthropic programs in the communities where it has operations, focusing particularly on nonprofit programs in youth development and workforce preparedness. The money is in addition to the roughly $55 million a year that Altria typically donates to philanthropy, a company spokeswoman said.
The bonus to employees is expected to be paid out this month and will amount to a total of $24 million for the company’s approximately 7,900 non-executive employees.
About 3,600 of those employees are in the Richmond area, where the company has a cigarette factory in South Richmond, its headquarters in Henrico, a research center in downtown Richmond and other operations.
“Our employees drive our success,” said Marty J. Barrington, the company’s chairman and CEO, in a statement. “This bonus is one way we say thank you for everything they do to make Altria a business leader and a leader in our communities.”
Altria is not the only company that has announced one-time bonuses since the tax reform bill was passed in late December. Others include Walmart, Comcast, AT&T, Walt Disney Co., Starbucks, American Airlines and Bank of America, with bonuses mostly of $1,000.
Altria announced the bonus to its employees Thursday afternoon, after the company reported its fourth-quarter and full-year earnings for 2017.” – Feb. 1, 2018 Richmond Times- Dispatch article excerpt
Valley Bank (Harrisonburg, Virginia) -- $1,100 bonuses for employees who work more than thirty hours a week, $750 bonus for employees who work under thirty hours a week; charitable contribution of $250,000:
"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President Neil Hayslett. "Rather than just banking all that, so to speak, we wanted to share it with the employees."
The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.
Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750.
The Timberville-based bank also announced a special dividend to shareholders and the formation of a community fund. During a scheduled training session, the company awarded $250,000 to three community foundations.
Altogether, Hayslett said $1.1 million was given out. – Feb. 20, 2018 WHSV 3 news article excerpt
F&M Bank (Timberville, Virginia) – Tax reform bonuses of up to $1,100:
Employees of F&M Bank were surprised on Tuesday to learn they would receive a bonus, which the institution attributes to additional earnings expected as a result of the GOP tax plan.
"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President Neil Hayslett. "Rather than just banking all that, so to speak, we wanted to share it with the employees."
The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.
Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750. – Feb. 20, 2018 WHSV 3 article excerpt
Walmart – Virginia employees at 138 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
AT&T -- $1,000 bonuses to 2,528 Virginia employees; Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
T.J. Maxx – 36 stores in Virginia – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Home Depot -- 49 locations in Virginia, bonuses for all hourly employees, up to $1,000.
Lowe's --9,000+ employees at 69 stores in Virginia. Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Waste Management Inc. (Multiple locations in Virginia) -- $2,000 bonuses:
In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.
“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.
“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10, 2018 Waste Management Inc. press release excerpt
Ryder (14 locations in Virginia) – Tax reform bonuses.
Cintas (Multiple locations in Virginia) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Chipotle Mexican Grill (Multiple locations in Virginia) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
Apple (Apple store locations in Arlington, Fairfax, McLean, Norfolk, Reston, Richmond, Virginia Beach, Woodbridge) - $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
McDonald’s (430+ locations in Virginia) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Comcast (Multiple locations in Virginia) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
Starbucks Coffee Company (Multiple locations in Virginia) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
U-Haul (Multiple locations in Virginia) – $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in Virginia) – Accelerated and increased compensation; pension plan contributions:
“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release
Wells Fargo – 264 locations in Virginia; Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Virginia examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
Alabama Examples of Tax Reform Good News

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Alabama. (Additions to this list can be sent to jkartch@atr.org)
Overseas Hardwoods Company (Stockton, Alabama) -- $1,000 tax reform bonuses to employees.
Sabel Steel (Montgomery, Alabama) - Expanding facilities, hiring new employees, pay increases for current employees:
Montgomery, Alabama’s, Sabel Steel is investing heavily in expanding its facilities—which means new jobs, new investment and large pay raises for most of its 230 employees across the South.
“When you’re a business, there are a lot of things to consider,” said Keith Sabel, president and CEO of Sabel Steel. “Taxes are a large part of it.”
Because the tax rate for companies like Sabel Steel—a family-owned steel distributor—has been lowered under tax reform, Sabel is able to maximize the benefits for his company.
First on the list? Rewarding the employees who work hard every day to make Sabel Steel successful.
“We gave a raise to everyone across the board,” said Sabel. “We improved everyone’s pay. We have incentives for as many workers as possible. If they meet or beat expectations, we’re making sure they’re rewarded.”
“We have quality perks,” Sabel added. “Good insurance. Good benefits. We’re constantly trying to improve, and now we’re able to. Morale is very good. We’re a family business, and we run it like a family business—where we take the time to get to know people, their families. I try to look out for my employees all the time.”
But Sabel Steel’s current employees aren’t the only ones who will benefit from tax reform and the booming economy. Sabel Steel also plans to reinvest its tax reform savings in its business by expanding and upgrading facilities in Newnan, Georgia, and Baton Rouge, Louisiana, and adding new equipment that will make its facilities more productive and innovative. Sabel also cites a new plasma machine it purchased for its plant in Theodore, Alabama—a machine that offers smoother and more efficient steel-cutting techniques. It also plans to make further upgrades to its equipment as needed.
To staff the expanded and upgraded facilities, Sabel Steel plans to hire more workers. Its recruitment effort focuses on talent, passion and integrity because Sabel Steel knows that, by starting with solid employees, it can train them on-site and equip them with the skills to do the jobs that the company needs. - July 11, 2018, National Association of Manufacturers article excerpt
Cogent Building Group (Point Clear, Alabama) – $2,000 bonuses for all four employees.
American Proteins Inc. (Hanceville, Alabama)— $1,000 bonuses:
“American Proteins Inc. based in Cumming has 700 employees at its operations in Georgia and Alabama. It announced it would give employees $1,000 bonuses "in response to the tax reform package signed into law earlier this year."
"President Donald Trump and the Republican Congress have reduced taxes for businesses and individuals and I'm excited what this means for our company and its employees," American Proteins Inc. Chairman Tommy Bagwell said in a statement Feb. 5.” – Feb. 26 2018, Atlanta Business Chronicle article excerpt
Otelco (Oneonta, Alabama) — $500 bonuses for all employees:
The Tax Cut and Jobs Act, enacted in December 2017, affects Otelco’s taxes in 2017, as well as future tax years. Bonus depreciation was increased from 50% to 100%, beginning in 2017, with the Company realizing a benefit of over $0.6 million in fourth quarter 2017. The reduced maximum tax rate has also lowered the Company’s deferred tax liabilities and is reflected in an income tax benefit, raising net income for the quarter and year. “We recently announced to our employees that everyone would be receiving a special bonus of $500,” commented Rob Souza, President and CEO of Otelco. “Coupled with the lower tax withholding rate that most employees should experience, everyone should start 2018 with more take home pay. — March 5, 2018 Otelco statement
Alabama Power (Birmingham, Alabama) – The utility is passing along tax savings to customers:
Alabama Power Company customers will see a reduction in their bills because of the federal income tax cut approved by Congress last year, the Public Service Commission announced at its monthly meeting today.
The reduction in 2018 will be for $257 million, about a 9 percent cut, the PSC said.
The cut requires no action by the PSC, which regulates Alabama Power.
The reduction takes effect in July and continues through December.
The Tax Cuts and Jobs Act, signed into law in December, reduced the federal corporate income tax rate from 35 percent to 21 percent effective Jan. 1, 2018.
The three commissioners, all Republicans, said it was good to see consumers benefit from the tax cuts promoted and signed into law by President Trump.
"This is a great day for Alabama consumers and taxpayers," Commission President Twinkle Andress Cavanaugh said.
The commission approved two requests from Alabama Power related to the income tax cut.
One would allow the company to apply up to $30 million of excess federal deferred income taxes this year to Energy Cost Recovery, a factor in rate-setting.
The other request from Alabama Power was to make several changes to the PSC's method of setting rates, called Rate Stabilization and Equalization, or RSE. The PSC said the changes would enable Alabama Power "to mitigate the credit quality impacts" resulting from the Tax Cuts and Jobs Act and preserve rate stability for customers. The changes would allow Alabama Power to increase the equity share of its capital investment, the PSC said.
In conjunction with that second request, Alabama Power committed to no increases in its base rates through 2020 and to credit customers $50 million next year, the PSC said. – May 1, 2018 AL.com article excerpt
Protective Life Corporation (Birmingham, Alabama) -- Base wage raised to $15 per hour; $1,000 bonuses for 75% of employees:
Recognizing the benefits it will receive as a result of the recent passage of federal tax reform, Protective has committed to:
- Paying a special $1,000 bonus to approximately 75% of its employees
- Establishing a minimum wage across its employee base of $15/hour -- Feb. 13, 2018 Protective Life Corporation statement
Russell Lands (Alexander City, Alabama) -- $500 bonuses for about 400 full-time non-management staff:
Russell Lands, the largest lakeside residential developer in the state, has given full-time employees a $500 check.
“We are thrilled that our company is strong, the economy is good, and that our national leaders recently approved a tax plan that should be very positive for all of us,” said Chairman Ben Russell. “This is a token of the company’s, and my personal, genuine appreciation for what our folks have done to make Russell Lands such a great company. It’s because of our employees’ efforts that we have been able to accomplish so much."
Non-management-level employees who had been with the company since July 1 were given the checks this week – almost 400 in all. – Jan. 12 2018, Birmingham Business Journal article excerpt
Great Southern Wood Preserving, Inc. (Abbeville, Alabama) -- Significantly increased employee benefits: lower healthcare costs, more paid time off, scholarships, and more:
Great Southern Wood Preserving, Incorporated, has begun an active and ongoing process to increase employee benefits by reinvesting its tax savings in its people, the company has announced. The company expects full implementation to take place in 2018.
In late 2017, Congress passed and the President signed into law legislation providing significant tax breaks for corporations. Across America, many companies have chosen a variety of options for applying these savings, such as providing one-time bonuses to employees, increasing charitable giving and reinvesting in facilities upgrades.
For its part, Great Southern Wood will make investments on an ongoing basis to lower healthcare costs for eligible employees, allow employees to accrue more paid time off based on length of service, develop scholarships for dependents of employees and enhance other benefits going forward.
“I’m very pleased that every employee across the company will see the results of the change in tax laws,” said Jimmy Rane, Great Southern Wood’s founder, president and CEO. “The success we’ve enjoyed as a company comes from every one of us working hard and doing our part, and I can’t think of a better way to apply our tax savings than by further investing in benefits programs for our employees. We strive to be an employer that draws the best and brightest to our company, and we believe that providing stronger benefits is essential to this continuing effort.”
Great Southern employs almost 1,200 at locations in eleven states. [Texas, Missouri, Arkansas, Georgia, Alabama, Mississippi, Louisiana, Pennsylvania, Virginia, Maryland, Florida] -- March 29, 2018 Great Southern Wood Preserving, Inc. press release
Regions Financial Corporation (Birmingham, Alabama) – base wage increase to $15 per hour; $40 million in charitable donations; $100 million in capital expenditures:
“Regions is making these investments in anticipation of the savings it will recognize as a result of federal tax reform intended to support economic growth.” – Regions Financial Corporation press release
DTI Partners Inc. (Mobile, Alabama) -- $1,000 bonus to full-time employees; $300 bonus to part-time employees:
“The tax bill was the primary reason we were able to do this as a company. The bonuses were a great morale booster. We are a very small company but we believe this will help us grow in the long run.” -- Message from CEO Tom Busby
Xante Corporation (Mobile, Alabama) -- $1,200 bonuses:
Mobile-based Xante Corp. handed out $1,200 bonus checks to most of its employees on Monday, as its CEO gave thanks to a Republican tax reform bill and Rep. Bradley Byrne.
Xante provides high-end printers and related software for use by professional graphics and printing operations. It employs a little over 100 people in Mobile and about 15 more in Europe. CEO Robert Ross said Monday that anyone who'd been with the company for a year or more was getting a $1,200 bonus, while those employed less than a year were getting a different amount.
Mobile employees whooped and cheered as Ross announced the windfall Monday morning. They also heard Ross explain that the company had additional plans for money saved as a result of tax cuts passed by Congress and signed into law by President Donald Trump in December. Among other changes, the tax bill significantly lowered the corporate tax rate. – Feb. 19, 2018 AL.com article excerpt
T.J. Maxx – 25 stores in Alabama – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
- Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
AT&T -- 5,071 Alabama-based AT&T employees received $1,000 bonuses. The company also announced a $1 billion increase in nationwide capital expenditures.
Walmart – 144 retail locations in Alabama -- Over 22,000 Alabama-based Walmart and Sam's Club employees are receiving wage increases as well as tax reform bonuses ranging from $200 - $1,000 for a state total of $37,111,483. The starting wage rate was raised for all hourly employees to $11. The company also announced expanded maternity and parental leave and $5,000 for adoption expenses.
Apple (Apple store locations in Birmingham and Huntsville) -- Alabama-based Apple employees received $2,500 bonuses in the form of restricted stock units. Nationally, $30 billion in additional capital expenditures; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
BancorpSouth Bank (30 branch locations in Alabama) – pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees:
BancorpSouth Bank today announced an additional investment in its employees, which includes pay increases and /or one-time bonuses to nearly all non-commissioned employees.
The investment of over $10 million in 2018 will benefit 96% of the Company's non-commissioned workforce. Pay increases were effective January 1, 2018.
"We are proud to reward our team with this opportunity since the Tax Cuts and Jobs Act should benefit everyone" said Dan Rollins, Chairman and CEO. "BancorpSouth's continued and future success is based on the economic vitality of the communities we serve and taking care of our teammates allows us to provide the very best service to our customers, communities and shareholders." – Jan. 3, 2018 BancorpSouth Bank press release
-----------------------
The increased compensation overall at BancorpSouth affected more than 70 percent of all employees, and provided a $1,000 bonus to nearly 20 percent of all employees.
BancorpSouth employs some 4,000 employees in more than 230 locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, plus an insurance location in Illinois. – Jan. 4, 2018 Daily Journal/BizBuzz article
Home Depot -- 28 locations in Alabama, bonuses for all hourly employees, up to $1,000:
"This incremental investment in our associates was made possible by the new tax reform bill." -- Jan. 25, 2018 Home Depot press release
Cintas Corporation (Multiple locations in Alabama) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Comcast (Multiple locations in Alabama) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Chipotle Mexican Grill (Multiple locations in Alabama) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Ryder (Seventeen locations in Alabama) -- Tax reform bonuses for employees.
Starbucks Coffee Company (Multiple locations in Alabama) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
U-Haul (Multiple locations in Alabama) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Wells Fargo – 125 bank locations in Alabama; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Alabama examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
More from Americans for Tax Reform
Texas Examples of Tax Reform Good News

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
In their own words, below are several examples of tax reform good news in Texas (Additions to this list can be sent to jkartch@atr.org)
Cox Manufacturing (San Antonio, Texas) -- The company is hiring new employees and speeding up new facility construction:
For Cox, those savings may give the manufacturer some much-needed relief as it adds staff and equipment necessary to handle the increased orders the company’s been receiving over the last month or so, President Bill Cox said.
“The biggest benefit I think is not the tax savings, but the activity that’s going on. It’s just like crazy,” said Cox, whose company employs 150 and makes machined and other parts. “I had some older machines that we wanted to phase out and I just couldn’t believe how quickly they sold. I’m getting pressure to release them sooner than I wanted to.”
Demand has picked up dramatically since the bill was signed into law, he said. His backlog of orders has grown from six to eight weeks in December to 10 to 12 weeks now, and he’s having to move up construction of a new 8,000-square-foot manufacturing plant by at least a year in order to meet the growth.
“We needed it yesterday,” he said of the new facility.
Cox said his backlog of orders is starting to cost him work. The new factory and equipment — which he hopes to bring online this year — will cost at least $1.5 million, create 15 jobs and would add to his 54,000 square feet of existing manufacturing space. - February 7, 2018, San Antonio Express News article excerpt
Capital City Hospitality Group (Austin, Texas) – Hired over 50 employees as result of the Tax Cuts and Jobs Act.
“I’m a big promoter of the tax reform, and I think it’s working,” said Round Rock hotel company owner Hitesh Patel.
“Patel, chief executive of Capital City Hospitality Group and immediate past chairman of the Asian American Hotel Owners Association, said the 2017 tax law’s provisions on exchanges of real estate have helped his company expand by more than 50 employees.” – Aug. 29, 2019 Dallas Morning News article
Village Foods & Pharmacy (Bryan, Texas) - employee bonuses, implement a 401(k) program:
Village Foods & Pharmacy Said They Were Able To Provide Employee Bonuses And Implement A 401(k) Program. - US Chamber of Commerce
Home Instead Senior Care -- Samuel and Brandy Patton, franchise owners (El Paso, Texas) – As noted by the International Franchise Association, tax savings will help the Pattons achieve their goal of hiring 50 people in 2018:
“We fully plan on hiring more employees,” said Samuel Patton, who owns a Home Instead Senior Care franchise with his wife, Brandy, in El Paso, Texas. They’ve set a goal of hiring 50 people in 2018. “This tremendously helps with that endeavor as this money will assist with prerequisite items such as training, drug screens and background checks,” he said of the tax savings. “We will spend more money on advertising in our local community as well as increase training programs for current employees,” Patton added. – April 17, 2018 International Franchise Association report. (The IFA has a growing list of franchisees who have pledged to hire additional workers, raise wages, purchase new equipment, or expand territories/purchase new franchise locations due to the Tax Cuts and Jobs Act.)
Camp Construction Services (Houston, Texas) – This Houston-based full-service general contractor awarded its employees $500 tax reform bonuses in December 2017:
In a note to employees, CEO Roger C. Camp wrote:
Campers,
I’m sure you have heard of the new tax reform that Congress just passed. Because of the reduction in Corporate taxes we, as will all businesses, benefit from this tax cut. We believe that YOU are the reason for our success. And now that we will be giving less of our hard earned income to the federal government, we can share some of it with you. Please look for a $500 “tax cut” bonus in your next payroll run. Merry Christmas!
Dripping Springs Distilling (Dripping Springs, Texas) -- The owner says he was able to use savings from the Tax Cuts and Jobs Act to hire new employees, invest in new equipment, and break ground on a new visitors center:
These tax savings have enabled Texas craft distillers to expand our businesses by hiring more employees, investing in new equipment and purchasing more from Texas agricultural suppliers. At Dripping Springs Distilling, which I co-founded, in addition to creating new jobs, we were able to break ground on a new visitors center, where we hosted 15,000 visitors last year.
Gary Kelleher is co-founder of Dripping Springs Distilling. -- Nov. 29, 2019 My San Antonio
CenterPoint Energy (Houston, Texas) - The utility is passing on tax savings to customers:
CenterPoint Energy, the largest natural gas utility in the state with more than 400,000 customers, has proposed to reduce its rates by $19.2 million beginning in October.
CenterPoint filed the request with the Arkansas Public Service Commission on Friday in response to an order by the commission to reduce rates as a result of the federal tax law change passed in December. Congress passed the Tax Cuts and Jobs Act that reduced the corporate tax rate from 35 percent to 21 percent.
If the commission approves the lowered rate, Houston-based CenterPoint's rates would drop 9.5 percent on bills from October to January and 7.3 percent in January. For a customer with a bill of $100, it would fall to $90.50 under the first scenario and to $92.70 under the second scenario.
"Tax reform is a win for customers and reduced costs are being returned to them through various mechanisms or rate proceedings within each of our operating jurisdictions," said Alicia Dixon, CenterPoint's spokesman. – August 28, 2018, Northwest Arkansas Democrat Gazette article excerpt
Beck Manufacturing International (Converse, Texas) - Building a new facility, hiring new employees, doubling company’s capacity
Tom Beck, vice president of operations at Beck Manufacturing International in Converse, said he expects his company, which builds cement mixer bodies that mount on trucks, will see a reduction of close to 10 percent in its tax rate.
The savings will flow into Beck Manufacturing International investments, including an under construction manufacturing site that will double his company’s capacity in Converse, he said.
“That money that we hang on to … that’s absolutely going directly toward the new facility that will employ more people,” Beck said. - February 7, 2018, San Antonio Express-News article excerpt
Rebecca Creek Distillery (San Antonio, Texas) -- The company was able to use savings from the Tax Cuts and Jobs Act to hire more people and expand:
Rebecca Creek Distillery LLC’s Steve Ison said that if Congress fails to extend that tax relief, it will severely strain the craft beverage industry and hamper his company’s ability to continue expanding.
“It saved us a million bucks,” Ison said. “With that money, we were able to expand and hire more people.”
Backers of the act note that it reduces taxes on distilled spirits, for example, by more than $10 for the first 100,000 gallons produced or imported annually. There is less of a reduction for additional gallons produced. -- Dec. 3, 2019 San Antonio Business Journal
Kanga Roof (Austin, Texas) – Tripled their revenue and doubled their payroll.
“Round Rock roofing business co-owner Stacie Feller credited Trump with boosting businesses’ confidence.
“She and her husband Scott’s Kanga Roof Austin has has more than tripled its revenue and more than doubled its payroll, to 24 employees, since January 2017, she said.”
“I’m very proud to say with some of the tax cuts, some of the things, this year, 2019, was the first year we were able to offer health insurance and a simple [Individual Retirement Account] plan for our employees,” she said. “We just couldn’t afford it before.” -- Aug. 29, 2019 Dallas Morning News article
Leak Sealers (Lumberton, Texas) – Bonuses to its 100 employees:
Female-owned engineering company Leak Sealers says it's handing out bonuses to its 100 employees, joining major retailers like Lowe's and Walmart Inc. that are investing in workers after Congress approved a tax cut that will help businesses. –
"We've been incredibly successful, and I've never seen anything like it, the way business has been roaring," said CEO Henry Adams in a statement. "We're appreciative and we want to share it with our employees."
Leak Sealers, with company offices in Lumberton, Nederland and Lake Charles, is a "woman-owned certified engineering company and a leader in the on-stream environmental repair industry," according to the statement. -- Feb. 8 2018, The Beaumont Enterprise article excerpt
Groomer’s Seafood (Corpus Christi, Texas) – Expansion of distribution facilities.
Group 1 Automotive (Houston, Texas) – $500 cash bonuses for non-management dealership employees and operational support staff in the United States:
Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today announced a $500 cash bonus for non-management dealership employees and operational support staff in the U.S. The Company owns and operates 115 dealerships nationwide.
"As we were in the process of reviewing the opportunities the new tax reform law creates for us to better our business, we decided the best investment we could make was in the people serving as the face of our company every day,"said Earl J. Hesterberg, Group 1's president and chief executive officer. "For almost 13 years, I have watched our loyal dealership operating and support teams move cars in the 100-degree heat of the Texas summer, clean snow off of new car inventory in a 10-degree Boston winter, and spend long days in front of a computer screen processing documents and communicating with our customers. These people are the heart of the Company. They generate our profits and my management team and I feel that the financial benefit of the new tax law creates an opportunity for us to say thank you to these key teammates."
This bonus to qualified employees will be paid on March 1, 2018.
Group 1 is assessing the full impact of the tax reform law on the company's operations. Additional details will be shared when the company releases 2017 fourth quarter and full year earnings on February 8, 2018. – Jan. 12, 2018 Group 1 Automotive press release
Charlie Bravo Aviation (Georgetown, Texas) - $1,000 bonuses for all six employees.
JSW Steel USA (Baytown, Texas) – Committed to $1 billion of new investment in the United States as well as hiring or re-skilling 500 workers.
“Today JSW USA CEO John Hritz and Ryan Brindley, an employee at their Mingo Junction, Ohio, state-of-the-art steel mill met with President Trump, Vice President Pence, Ivanka Trump, and other cabinet officials and governors at the White House to celebrate the one-year anniversary of the Pledge to American Workers.”
“Hritz, who signed the Pledge in January committing to $1 billion of new investment in the United States and the hiring or re-skilling of 500 workers, visited with the President to show his support for the employees of JSW USA and to ensure Administration policies continue supporting a strong steel industry in America.”
“JSW is the largest steel producer in India, and because of President Trump’s bold leadership on tax reform, a smart regulatory agenda, and investing in American workers, it was a no-brainer to invest in the US,” said Hritz. “The steel industry was dying. Since President Trump took office, we’ve made it our mission not only to build the largest, cleanest, most eco-friendly, state-of-the-art electric arc furnace in North America, but also to invest the time and training into our employees so they, too, are state-of-the-art. Our workers come first and foremost and we are proud to provide high wages and a great work-life balance, mainly due to the current positive economic climate.” – July 25, 2019 Business Wire press release
Rush Enterprises (New Braunfels, Texas) – $1,000 bonuses for all 6,600 employees:
“We believe tax reform to be beneficial for Rush Enterprises, our communities and overall economic growth,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc.“We are happy to take this step to invest in our employees and honor their important contributions to our company with this $1,000 gift,” he added.
The $1,000 discretionary bonus will be paid to all Rush Enterprises, Inc. employees once the President signs the tax reform bill into law. – Rush Enterprises, Inc.
Cabot Oil & Gas Corporation (Houston, Texas) - $1,600 bonuses for employees.
WIN-911 (Austin, Texas) — software company hiring new employees:
Robert Brooker, chairman of WIN-911, says the Austin-based software company will add five or six workers to its U.S. staff of 35 this year, up from the two or three it was planning to bring on. “It’s allowing us to … hire more people,” he says of the tax benefits. – April 26, 2018 USA Today article excerpt
AT&T -- $1,000 bonuses to 32,435 Texas employees; Nationwide, $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
Waste Management, Inc. (Houston, Texas) – $2,000 bonuses to approximately 34,000 employees:
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 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.
Approximately 34,000 qualified Waste Management employees could receive this special bonus. – Jan. 10 2018, Waste Management, Inc. press release
Ennis, Inc. (Midlothian, Texas) -- $500 bonuses to 2,200 non-management employees:
Keith S. Walters, Chairman, President and Chief Executive Officer of Ennis, Inc. (NYSE: EBF), a manufacturer of business forms and other business products headquartered in Midlothian, Texas, announced today that in conjunction with the signing of the Tax Cuts and Jobs Act of 2017, the Ennis Board of Directors has approved a special one-time bonus to more than 2,200 non-management employees in the amount of $500.00 each. This payment will take place with the first payroll period in January 2018.
In addition, in response to this landmark act the Board of Directors has declared a special one-time cash dividend of $0.10 a share of our common stock. The dividend will be paid on February 9, 2018 to shareholders of record on January 12, 2018.
“Congress and the President by their passage of this historic law have improved the prospects of the American worker and American company success. We recognize this historic opportunity for our Company, our employees and our shareholders,” said Mr. Walters. – Dec. 22, 2017 Ennis, Inc. press release
Quadvest (Tomball, Texas) – the utility will pass along tax reform savings to customers:
"On behalf of the approximately 30,000 customers Quadvest Utility serves in Southeast Texas, we would like to thank you for your integral part in the development and ultimate passage of the Tax Cuts and Jobs Act of FY2017. The passage of this key piece of legislation has allowed Quadvest to proactively reduce our customers' base water and sewer fees by 26% or almost $90 per year/family." – Simon Sequeira, President of Quadvest
Entergy Texas (The Woodlands, Texas) – the utility will pass along tax reform savings to customers:
`Entergy Texas is also passing substantial savings from federal tax reform directly to customers. These tax savings, along with investments in infrastructure to reduce outages and improve service, will result in more reliable and affordable energy to customers.
Following the passage of the Tax Cuts and Jobs Act, the federal corporate tax rate was lowered, and Entergy Texas will flow back more than $200 million to customers over the next two years. This sum represents funds that Entergy Texas had collected from customers according to IRS rules to pay future taxes at the higher tax rate that is no longer in effect. Additionally, Entergy Texas’ new rates will reflect the lower tax rate going forward. - May 15, 2018, Entergy Texas Press Release excerpt
Russell Marine LLC (Channelview, Texas) - Increased pay by an average of 10 percent, gave $900,000 in bonuses, purchased $1.8 million in new equipment, green lighted a new company headquarters:
This Houston-based marine construction business, has already been able to purchase new equipment because of tax reform and expects to see record-setting revenue of about $90 million following new tax law.
“This will be our best year ever” – Russell Inserra, Owner
Bonuses: totaling $900,000
Pay Raises: 10 percent raise on average
New Equipment: $1.8 million, 440-ton crane, the largest floating rotating crane in Texas - May 7, 2018, Woodlands Online article excerpt
Nexstar Media Group, Inc. (Irving, Texas) -- Bonuses of $500 for full-time employees, $250 for part-time employees; increased 401(k) contributions:
As announced by Perry Sook during our Town Hall broadcast, the new corporate tax rate will produce a financial benefit for Nexstar, and the Company wants to extend that benefit to our employees via a one-time bonus and an increase to the 401k plan company match. Here are the details for those benefits.
A one-time special bonus will be issued to all employees actively employed by the Company as of March 1, 2018. The amount of the bonus is $500 for full-time employees and $250 for part-time employees. Bonuses will be paid in the first pay period of March and will be subject to applicable taxes.
Employees ranked at the Vice President level or above are not eligible for the bonus.
Effective April 1, 2018, the Company match for 401k contributions will be increased from 25% to 50% of the first 6% of contributions. -- Jan. 17, 2018 note to Nexstar employees
American Airlines (Ft. Worth, Texas) -- $1,000 bonuses for every employee (excluding officers). The bonuses will total $130 million. AA had 127,600 employees as of Sept. 2017.
“Recent tax reform has received much publicity. While the company does not yet pay cash taxes due to our enormous losses in the past, there is no doubt that our country’s new tax structure will have positive long-term benefits for American. We will be able to invest even more in aircraft and facilities, and we will be able to do so with even greater confidence about the future. As we analyze those potential future benefits, our leadership team, backed by our Board of Directors, considered how a portion of that positive impact might be directly shared with the very people who produce the profits at American—all of you.
We are pleased to announce that in light of this new tax structure and in recognition of our outstanding team members, American will distribute $1,000 to each team member (excluding Officers) at our mainline and wholly owned regional carriers. These distributions will total approximately $130 million and will be made in the first quarter of 2018.” – Jan. 2, 2018 American Airlines press release
Southwest Airlines (Dallas, Texas) -- $1,000 bonuses for all 55,000 employees; $5 million additional charitable donations:
The Southwest Board of Directors authorized a bonus to all Southwest Airlines Employees to celebrate the recent passage of the tax reform legislation. All Fulltime and Parttime Southwest Employees employed with Southwest on Dec. 31, 2017, will receive a $1,000 cash bonus on Jan. 8, 2018.
"We applaud Congress and the President for taking this action to pass legislation, which will result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular," said Southwest's Chairman and Chief Executive Officer Gary Kelly. "We are excited about the savings and additional capital, which we intend to put to work in several forms—to reward our hard- working Employees, to reinvest in our business, to reward our Shareholders, and to keep our costs and fares low for our Customers." – Jan. 2 2018, Southwest Airlines press release
Insperity (Houston, Texas) – Tax reform bonuses totaling $17 million. $1,000 - $4,000 bonuses for each employee, based on length of service.
The good news was announced to employees via internal message from CEO Paul Sarvadi. ATR obtained the message, which is reproduced below. A company press release confirming the details can be found here.
To all Insperity Employees,
In December Congress passed a tax reform bill which among other changes, lowered the tax rate for corporations. Insperity is one of those corporations which will benefit accordingly. This change leaves more of our hard earned dollars available after tax to invest in our business as we see fit. We believe all constituencies should benefit from this change including our amazing employees.
Therefore, as was communicated with this morning’s news release we will be paying a one-time bonus as a result of the U.S. tax reform act. We plan for this bonus to be paid on Wednesday February 14, 2018. This bonus is intended for
·full-time employees in grades 14 and below with hire dates 9/30/2017 or before and eligible to receive the 2017 AP payout and eligible to participate in the 2015 AIP Program, and
·full-time employees in grades 14 and below with hire dates, 10/01/2017 to 02/07/2018 and are eligible to participate in the 2018 AIP Program, and
·Business Performance Advisors and Business Performance Consultants with hire dates 02/02/2018 or before
Below is the overview for the bonus payout
Hire Date Payout
12/31/2015 or before $4,000
01/01/2016 to 12/31/2016 $3,000
05/01/2016 to 09/30/2017 $2,000
10/01/2017 to 02/07/2018 $1,000
The tax reform bonus payments will be in addition to the normal AIP program and disbursed similar to your regular paycheck.
Thank you for your hard work and dedication and let’s keep our strong performance going!
PJS
Allsup’s Convenience Stores, Inc. (198 stores in Texas) -- $1,000 bonuses:
Workers were feeling so good at a Santa Fe Allsup’s convenience store Thursday that you might have thought it was raining cash. And it almost was.
One-time cash bonuses of $1,000 had appeared that morning by direct deposit in the bank accounts of all full-time, non-executive Allsup’s employees who have been with the company at least one full calendar year.
Cashier Cesia Villatoro, who works at the Allsup’s store at 305 N. Guadalupe St., said she was happy with the bonus. Then she amended that to “very happy.”
“I’m going to help my family,” Villatoro said.
Owners of the Clovis-based company said in a news release that the windfall was “a result of the recent Tax Cuts and Jobs Act passed in December 2017” — a massive Republican tax overhaul pushed by President Donald Trump.
“The new tax reform legislation provides tax cuts for individuals and companies and should result in positive economic growth,” Allsup’s said.
The company operates 317 stores in New Mexico, West Texas and Oklahoma and employs 3,200 full-time and part-time employees. It did not say how many of its employees received a bonus this week.
Velia Bojorquez, manager of the North Guadalupe Street store, said the company had mentioned the bonuses would be coming but didn’t give an exact date of when workers could expect them. “It’s too good to be true,” she said. “We were all surprised. Where did this money come from?”
Bojorquez said she plans to use the extra infusion of cash to pay some bills. “It’s going to be a big help.”
Cashier Maria Rosado was equally enthused. “I really need it,” she said of the cash disbursement. “I’m going to help my family and pay some bills.” – March 15, 2018 Santa Fe New Mexican
Cadence Bancorporation (Houston, Texas) – Base wage raised to $15 per hour; increased company 401(k) contributions; new employee stock purchase plan; merit pool increase; enhanced employee benefits:
In an announcement to its employees, the company shared it will introduce the following changes effective April 1, 2018:
- An increase in the company’s matching 401k contribution
- An increase in the company’s contribution to employee healthcare costs
- A pay increase for non-exempt, non-commissioned associates to a base wage of no less than $15 an hour
- A merit pool increase for eligible associates
In addition, Cadence executives announced an employee stock purchase plan with a 15% discount, pending approval by Cadence Bancorporation shareholders.
“Our employees deliver exceptional service and value to our clients every day, and we want to reward them for their dedication,” said Paul B. Murphy, Jr., chairman and chief executive officer of Cadence Bancorporation. “Investing in our employees allows us to attract and retain top talent, which directly correlates to sound operating and financial performance and a better return for our shareholders.” – February 14, 2018, Cadence Bancorporation press release excerpt
Apple (Apple store locations in El Paso, Austin, Dallas, Fort Worth, Friendswood, Frisco, Houston, Plano, San Antonio, Southlake, Sugar Land, and The Woodlands) - $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.
El Paso Electric Company (El Paso, Texas) – The utility is passing along tax savings to customers:
El Paso Electric (EPE) was one of the first utilities in the state of Texas to address and identify a mechanism to refund Texas customers due to the reduction in the federal income tax rate.
On December 14, 2017, the unopposed settlement approved by the Public Utility Commission of Texas (PUCT) included a provision to refund EPE’s Texas customers for the reduction in the federal income tax rate.
EPE is currently calculating the changes and impacts of the new tax law to determine the amount of the refund to be filed in mid-April. EPE expects Texas customers will begin to see the refund as a credit on their bills by mid-year 2018 following PUCT approval of its refund filing. – Jan. 23 2018, El Paso Electric Company press release
Oncor Electric Delivery (Dallas, Texas) – The utility is passing along tax savings to customers:
The company delivering electricity to most North Texans would likely save millions from the new corporate tax rate cut. But that entire windfall is expected to go back to consumers.
That's the result of a recently completed rate case where the state's largest regulated utility agreed to return all tax cut benefits to its customers.
The $1.5-trillion tax overhaul hadn't been completed when Oncor's rate negotiation with the regulator was settled. And the Public Utility Commission of Texas, the agency that regulates the operations of electricity-distribution companies like Oncor, made sure to cover the possibility of a tax cut.
"Oncor will work with the PUCT to determine the best way to distribute those savings back to customers," said spokesman Geoff Bailey via email. "In short, we are capturing these tax savings for future refunds to our customers." – Jan. 16 2018, Dallas Morning News article excerpt
Happy State Bank (Happy, Texas) -- base wage raised; salary increases; bonuses; increased retirement contributions:
In its board meeting yesterday, January 23, the Board of Directors of Happy State Bank voted unanimously for a significant wage and benefit increase for employees of the company as a direct result of the new tax reform legislation. The announcement was made by Board Chairman and CEO, J. Pat Hickman.
The wage increases directly impact over 600 of the bank’s 700+ employees.
The highlights of the new program are:
- Happy State Bank has a new starting minimum wage of $13.50 per hour…increasing to $14.00 after a 90-day probationary period.
- Present employees currently earning less than $14.00 per hour will be increased to this amount immediately.
- Employees currently earning between $14.00 and $17.50 hourly will receive an approximate $0.50 hourly wage increase.
- Salaried employees making less than $18 hourly will receive a $1,000 annual increase.
- Full-time employees making up to $100,000 (and not in the above categories) will receive a one-time $1,000 bonus or $500 bonus if part-time.
- The KSOP Retirement Plan dollar-for-dollar company match will increase from 6% to 7%, which benefits every employee that participates to that level.
“Our board is really excited to pass a major portion of our bank’s tax benefit over to our employees. For many of our employees, the raise will be life-changing. All told, these increases will impact 80% of our 700+ employees. It’s a win-win for everyone. Obviously, we’re all pretty happy around here,” stated Hickman. -- Jan. 24 2018, MyHighPlains.com article excerpt
Rio Bank (McAllen, Texas) — $1,000 bonuses for each of the 108 employees:
“Our Board approved the payment $1,000 to each of our 108 employees. That is everyone from the janitor on up. Our employees do not think this check is ‘crumbs’ like Nancy Pelosi called it and they sure do not think it is insulting like she stated that it was.” — Ford Sasser, President & CEO, Rio Bank
FirstCapital Bank of Texas (Midland, Texas) -- $500 bonuses for 197 employees.
First National Bank (Spearman, Texas) -- $1,000 bonuses for its 44 employees.
Amarillo National Bank (Amarillo, Texas) – $1,000 salary increases for over 300 employees:
Christmas came early for more than 300 employees at Amarillo National Bank when they found out they'd be getting a $1,000 pay raise.
The bosses at ANB are saying the pay increase is because of the GOP's tax reform bill.
The raises are the highest salary and wage increases in the bank's history.
313 of the bank's 600 full-time, non-salaried employees will get an immediate raise of $1,000.
ANB says they also plan on investing another $2.5 million into its downtown properties.
Executive Vice President William Ware says the bank will be saving a ton of money with the new tax bill so they're investing those savings back into their most valuable asset, their employees.
Executive Vice President William Ware said, "This is a once in a lifetime opportunity and we know with the savings from the tax reform bill, we want to reinvest that back into our bank and the first place we are going to put it is into our employees. That's our most important asset and we feel like that's a great thing to do."
ANB has 18 branches in Amarillo, Canyon, Borger and Lubbock. – Dec. 21, 2017 MyHighPlains.com article excerpt
Comerica Bank (Dallas, Texas) -- $1,000 to 4,500 non-officer employees; base wage increase to $15 per hour:
“This increase in minimum wage and one-time bonus are made possible by the tax reform bill that was passed by the U.S. Congress, then signed by the President on Dec. 22, 2017.” – Dec. 29, 2017 Comerica Bank press release
Texas Capital Bank (Dallas, Texas) – $1,000 bonuses for 900 employees:
“The rewritten tax code cuts the marginal tax rate, and that can be significantly beneficial to earnings and our stockholders, because we believe we have among the highest marginal and effective federal tax rates in the banking sector. The tax changes also will be very beneficial to our customers,” [Texas Capital Bank President and CEO Keith] Cargill said. – Texas Capital Bank press release
Thompson Graphics (Carrollton, Texas) – Invested in $625,000 worth of new equipment, and hired more employees.
“Event host Bob Thomas, owner of Thomas Graphics, which for a quarter-century has printed mail and campaign material for leading Texas Republicans, said accelerated depreciation schedules in Trump’s tax cut bill allowed him to buy $625,000 worth of new equipment last year.”
“Thomas Graphics hired three new employees because of the expansion. It is looking for two more, he said. Trump’s deregulation policies also are having a “trickle-down” effect that helps small entrepreneurs, Thomas said.” -- Aug. 29, 2019 Dallas Morning News article
STERIS Corp. (Texas locations in El Paso, Grand Prairie, Houston, and Keller) -- $1,000 bonuses totaling $7 million for non-executive U.S. -based employees:
"Like many companies, the recent tax reform in the U.S. will result in significant additional earnings for STERIS to strategically grow our business and return value to Customers, employees and shareholders. One of our first actions on that front will be a one-time special discretionary bonus of $1,000 to all U.S. employees other than senior executives." -- Feb. 7, 2018 STERIS plc press release
Webco Industries Inc. (Orange, Texas) – Up to $2,000 bonuses:
Webco says each employee was given $1,000 if they've been there for a year or more. Employees who have been there for a significant amount of time, were given $2,000.
Webco says they had more than a million dollars total to distribute to their employees, many of whom are in Sand Springs.
"The tax cuts and jobs act reduced corp tax rates, so that produced a significant amount of savings this year for Webco as our corporate tax bill was reduced," said Mike Howard with Webco Industries.
These were one-time bonuses and impacted employees in Oklahoma, Pennsylvania, Texas, Illinois, and Michigan. -- March 7, 2018 News on 6 article excerpt
Wal-Mart – Texas employees at 508 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 – 70 stores in Texas – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:
“The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving” – Feb. 28 2018, The TJX Companies Inc. press release excerpt
Home Depot -- 180 locations in Texas, bonuses for all hourly employees, up to $1,000.
Lowe's --23,000 employees at 23 stores and three distribution facilities in Texas. 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 (41 locations in Texas) – Tax reform bonuses.
Cintas Corporation (Multiple locations in Texas) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Chipotle Mexican Grill (Multiple locations in Texas) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
Comcast (Multiple locations in Texas) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years:
Based on the passage of tax reform and the FCC's action on broadband, Brian L. Roberts, Chairman and CEO of Comcast NBC Universal, announced that the Company would award special $1,000 bonuses to more than one hundred thousand eligible frontline and non-executive employees.
Roberts also announced that the Company expects to spend well in excess of $50 billion over the next five years investing in infrastructure to radically improve and extend our broadband plant and capacity, and our television, film and theme park offerings. With these investments, we expect to add thousands of new direct and indirect jobs. – December 21, 2018, Comcast release excerpt
Starbucks Coffee Company (Multiple locations in Texas) –$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 Texas) – $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in Texas) – 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 (1,200+ locations in Texas) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Wells Fargo – 588 locations in Texas; raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Texas 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
Positive Developments In IL-14

The list of Taxpayer Protection Pledge signers continues to grow in the Republican primary for Illinois’s 14th congressional district. Americans for Tax Reform congratulates all candidates willing to make a written commitment to American taxpayers to oppose income tax hikes.
This district covers northern Illinois, specifically the northern and western suburbs of Chicago, and is currently represented by Rep. Lauren Underwood (D). The Cook Political Report rates the district as toss up with a PVI of R+5.
The following candidates have signed the Federal Taxpayer Protection Pledge:
- Jim Oberweis
- Ted Gradel
- Catalina Lauf
- James Marter
Candidates often say they will not raise taxes, but disregard campaign promises once they take office. The Pledge ensures that candidates stay true to their commitment to oppose any and all tax hikes.
The candidates who signed the Pledge join Rep. Shimkus, Rep. Kinzinger, and Rep. LaHood in making this commitment to Illinois taxpayers.
There are currently eight candidates in the Republican primary, which is scheduled to occur on March 17th, 2020. ATR challenges all remaining candidates to sign the Pledge. Voters deserve to know where the candidates stand prior to Election Day.
For the most up-to-date information on Pledge signers, please visit the ATR Pledge Database.
Photo Credit: Wikipedia Commons
Minnesota Examples of Tax Reform Good News

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Minnesota. (Additions to this list can be sent to jkartch@atr.org)
Industrial Weldors & Machinists (Duluth, Minnesota) - Investing in employee pensions, hiring new employees:
“This is an American success story of generations,” Pence said of IWM, a third-generation family business that gets 70 percent of its work by rebuilding massive rock crushers used to extract taconite iron ore on the Iron Range.
Trump tax cuts helped the business and its employees, Pence said — including thousands of dollars in investments by the company into IWM employee pensions earlier this year.
“That’s what it’s all about,” Pence said.
It was an easy fact to check after the vice president’s remarks. All four sibling owners of the company were on hand — Dawn Bergh and her brothers Rick, Rob and Randy Abernethy. Bergh confirmed the pension investments for the company’s 32 employees.
“The boilermakers’ pension is in the toilet,” Bergh said. “They’re worried about it. We wanted to give them something that would keep them around. It’s really hard to get employees. We’re hiring right now for both a welder and a machinist.” - August 8, 2018, Twin Cities Pioneer Press article excerpt
3M Company (Maplewood, Minnesota) – the company increased employee pension contributions by $600 million:
3M said its tax rate under the new "Tax Cuts and Jobs Act" will fall to 20 percent to 22 percent in 2018, down from a prior rate of 26 percent to 27 percent. Executives said they will use the savings to boost returns for shareholders, increase pension reserves and to invest in the company. – Jan. 25, 2018 Star Tribune article excerpt
In 2017, free cash flow conversion was impacted by enactment of the TCJA, along with an additional U.S. pension contribution of $600 million that 3M made following the signing of tax reform. – 3M Annual Report for the fiscal year ending December 31, 2018
Priority Courier Experts (St. Paul, Minnesota) – tax reform bonuses were given on Jan. 2, 2018 to employees; further, employees will receive another $500 bonus in 2018 on the anniversary of their hire date:
Priority Courier Experts paid a “TRUMP BUMP” to each of its 80 employees on their January 2nd, 2018 paycheck. We also expanded the “TRUMP BUMP” to pay each employee a $500 bonus on their hire anniversary date in 2018, and our hope for the future is to make the “TRUMP BUMP” Bonus permanent. – Steve Cossack, Founder/CEO, Priority Courier Experts
Minnesota Power (Duluth, Minnesota) – the utility will pass tax cut savings to customers:
"When final rates go into effect late this year, customers will start receiving a 1.5259% credit on their monthly bill through a new line item, called the tax cut rider, totaling about $10 million a year refund until our next rate case," Rutledge said.
For a $100 power bill, that's about $1.53 returned - Aug 10, 2018, Duluth News Tribune article excerpt
Circuit Interruption Technology Inc. -- CIT Relay & Switch (Rogers, Minnesota) – One week of extra pay added to final 2017 paycheck; hiring of new employees, growing the staff by 10 percent:
Circuit Interruption Technology Inc. dba CIT Relay & Switch manufactures and distributes electromechanical relays and switches to the electronics, security, HVAC, appliance and automotive industries. Employees were notified just before Christmas of one extra week pay added to their final year end check as a result of the new tax reform measure. Due to the positive atmosphere created by the passage of the tax bill Company profit sharing combined with normal 401K contributions amounted to an additional 5% per employee for 2017. CIT has added 10% to our staff thus far in January 2018 and more additions are expected. – Rick Hampton, CIT Relay & Switch
Albert Lea Public Warehouse (Albert Lea, Minnesota) – $2,000 bonuses for all 12 employees:
Albert Lea business leaders said the recently passed tax bill is helping them invest in their organizations.
The tax bill passed in December cut the top federal tax rate to 21 percent from 35 percent, likely putting billions of dollars in the pockets of major Minnesota companies.
Albert Lea Public Warehouse Owner Al Larson gave each of his 12 employees a $2,000 bonus, which he said would not have been possible without reduced rates. He said he decided to pay the bonuses in January to help the workers pay off costs incurred during the Christmas season.
“I just distributed it back to them,” he said.
In addition to bonuses, Larson is installing two roofs and investing in new dock levelers.
Larson said he prefers investing company revenue locally instead of contributing more of a percentage to the federal government. – Jan. 30 Albert Lea Tribune article
Otter Tail Power Co. (Fergus Falls, Minnesota) – the utility will pass along tax reform savings to customers.
Koch Companies Inc. (Minneapolis, Minnesota) – increased driver wages; increased sign on bonuses:
Raised driver pay to 41 cents to 45 cents per mile and the maximum sign-on bonus to $7,000 from $5,000 prior to late December.
“Rate increases and benefits from the recent tax law reform have allowed us to re-evaluate our current driver pay to make sure we are putting money back in the pockets of our greatest asset — the driver,” CEO Randy Koch said – Feb. 12 2018, Transport Topics article excerpt
Xcel Energy Minnesota (Minnesota) - The utility will pass tax cut savings along to customers:
About six months ago, Xcel Energy announced its Minnesota customers would receive a rebate because of a federal tax cut. In Minnesota, $200 million was returned to customers through a one-time credit on their bills. A typical Minnesota electricity customer who pays $85 to $90 a month received a credit of about $45. – February 8, 2019, Inforum article excerpt
U.S. Bancorp (Minneapolis, Minnesota) – $1,000 bonuses for 60,000 employees; base wage hike to $15 per hour; $150 million charitable contribution:
“We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers.” – Andy Cecere, President and CEO
Northern States Power (Minneapolis, Minnesota) – The utility will pass along tax cut savings to customers:
The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.
Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).
---
"Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes," said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission Press Release excerpts
Bio-Techne (Minneapolis, Minnesota) -- $500 bonuses for all 1,650+ employees:
Many of you, particularly in the U.S., have probably been keeping up with the news the past few months on U.S. tax reform. With the passage of the bill in Congress yesterday and the President’s signature, the new tax law is now official. How does this affect our company? A lot. Our current corporate income tax levels average between 29% and 31%. With this new tax law, over the next year our tax rates will drop to levels potentially as low as 21%. We don’t know the total answer yet because the law is complicated, and includes tax calculations from other countries where we do business as well. What I can tell you is that we are likely to pay substantially less taxes in the U.S. and overall.
There has been extensive media coverage here in the U.S. on what companies will do with these gains. The U.S. Government’s primary goal for the new law is that companies will use the additional monies to invest in growth, and not simply to benefit shareholders through a dividend increase or share buyback. I am happy to tell you that we will use the savings to invest in our company and in you. We will use the funds to continue our investment in the company through expansion and acquisitions. But we also want to invest in our employees. Our board of directors has approved a recommendation to pay a bonus of US $500 to every employee globally. The bonus will be paid to all employees employed as of December 31, 2017 (other than the Corporate Leadership Team) and will be included in a January 2018 payroll. Management and the Board value each of you and your contributions, and this bonus is one way we wish to show our appreciation for your contributions to our strong business performance and excellent execution.
I look forward to working with all of you to create great future of continued growth for Bio-Techne. On behalf of the entire management team, thank you. – Dec. 21, 2017 special message to employees from Bio-Techne CEO Chuck Kummeth
Best Buy (Richfield, Minnesota) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. Over 100,000 employees nationwide will receive bonuses:
Best Buy is the latest major corporation to hand out bonuses to its employees as a result of the recently passed corporate tax reform.
In a letter sent to employees Friday afternoon, CEO Hubert Joly said full-time employees will receive a one-time bonus of $1,000 and part-time employees $500.
All permanent employees who are not on an existing bonus plan will receive the additional funds. The bonuses are expected to show up in their paychecks this month.
In all, more than 100,000 of Best Buy’s 125,000 employees in the U.S., Mexico and Canada are slated to receive the extra payouts.
In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.
“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman.
In recent days, other major retailers including Lowe’s, Home Depot and Walmart have also said they will hand out bonuses, expand benefits, and raise wages of its workers in light of the tax reform.
In Minnesota, U.S. Bancorp and TCF Financial also are handing out bonuses to workers and increasing charitable donations. U.S. Bank also said it would raise the minimum wage of its hourly employees to $15.
Among other changes, the new tax law cut the top federal tax rate for corporations from 35 percent to 21 percent.”—Feb. 2 2018, Minneapolis Star Tribune
Hormel Foods Corp. (Austin, Minnesota) – Stock options for employees; increased base wage to $13 per hour:
Hormel Foods Corp. this morning announced that it plans to use savings from the federal Tax Cuts and Jobs Act to award stock options to its employees and raise starting wages to $13 an hour. — Feb. 22, 2018 Post-Bulletin article excerpt
TCF Financial Corporation (Wayzata, Minnesota) -- $1,000 bonuses for full time employees; $500 bonuses for part time employees (exact number receiving bonus unknown at this time):
“As a result of the Tax Cuts and Jobs Act, TCF will provide approximately $5 million in one-time bonuses to eligible team members—$1,000 to full-time team members and $500 to part-time team members—who earned less than $100,000 in total compensation during 2017, totaling 80 percent of its workforce. Additionally, TCF will donate $5 million to TCF Foundation to increase grants to nonprofit organizations in the communities it serves, including increasing its match of team member contributions to nonprofit organizations from 100 percent to 200 percent in 2018.” – Friday Dec. 29, 2017 TCF Financial Corporation press release
Data Sales Co., Inc. (Minneapolis, Minnesota) – $1,000 bonuses for all 80 employees:
Data Sales Co., Inc. announced today that the Company will celebrate the recent passage of tax reform legislation by distributing to all 80 plus employees a special bonus of $1,000 each. Data Sales Co. will benefit from the new tax law lowering the corporate tax rate from 35 percent to 21 percent:
“Our hard-working employees make this company succeed, and we wanted them to share in the savings the company will see and also help grow our economy. Today I’m announcing that every employee will receive a cash bonus of $1,000 each,” said Paul Breckner, President of Data Sales Co. “I also want to thank our local Congressman, Jason Lewis, for his consistent advocacy of tax reform and seeing it through to becoming law. With the majority of our 80+ strong workforce here in Burnsville, I’m pleased that the benefits of tax reform will be felt at home.”
Background on tax reform bonuses and Data Sales Co.:
All employees, whether full-time or part-time, hourly, salaried, commission or non-commission will receive the bonus to show our appreciation and heartfelt thanks for their service. We believe this tax reform will be good for Data Sales, spur economic growth, continue to grow jobs and keep unemployment at an all-time low. – Jan. 22, 2018 Data Sales Co., Inc. press release
DTN (Burnsville, Minnesota) -- DTN an independent provider of information and actionable insights in the areas of agriculture, transportation and energy, and publisher of The Progressive Farmer, gave $1,000 bonuses to nearly 700 employees.
Ecolab Inc. (St. Paul, Minnesota) – $25 million in charitable donations:
In response to the passage of the new U.S. tax law, Ecolab announced its intent to make a $25 million contribution to the Ecolab Foundation. Since 1986, the Ecolab Foundation has contributed more than $100 million to communities in which we do business by providing basic needs, including hunger relief and affordable housing; supporting education, the arts and environmental conservation; as well as providing support to global relief organizations during times of natural disasters. – Jan. 23, 2018 Ecolab Inc. press release
T.J. Maxx – 16 stores in Minnesota – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates.
Communities
- Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Apple (There are five Apple stores in Minnesota: Bloomington, Edina, Minneapolis, Minnetonka, Roseville) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
AT&T -- 1,592 Minnesota employees received $1,000 bonuses; nationally, $1 billion increase in capital expenditures.
Bank of America (Multiple locations in Minnesota) -- $1,000 bonuses.
Chipotle Mexican Grill (Multiple locations in Minnesota) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Cintas Corporation (Multiple locations in Minnesota) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.
CVS Health (Multiple locations in Minnesota) -- Base wage raised to $11 per hour, and other pay ranges adjusted accordingly; company will absorb increases costs of health insurance premiums; creation of new parental leave program.
Comcast (Multiple locations in Minnesota) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Home Depot (Multiple locations in Minnesota) -- Bonuses for all hourly employees, up to $1,000
Lowe's -- 1,000 employees at 11 stores in Minnesota. Bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Ryder (Six locations in Minnesota) – Tax reform bonuses for employees totaling $23 million nationwide.
Taco John’s (62 locations in Minnesota): All full-time and part-time crew members received a $200 after-tax bonus:
Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).
On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:
- Every restaurant crew member - full-time and part-time - received $200 (after taxes);
- General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
- The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 John’s International, Inc. press release
Starbucks Coffee Company (Multiple locations in Minnesota) – $500 stock grants for all Starbucks retail employees, $2,000 stock grants for store managers, and varying plant and support center employee stock grants, totaling more than $100 million in stock grants nationwide; 8,000 new retail jobs and 500 new manufacturing jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
U-Haul (Multiple locations in Minnesota) – $1,200 bonuses for full-time employees, $500 bonuses for part-time employees.
Wal-Mart – 69 locations in Minnesota; Base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.
Waste Management, Inc. (Multiple locations in Minnesota) -- $2,000 bonuses.
Wells Fargo – 157 bank locations in Minnesota -- Base wage raised from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over next three years.
Anthem (Multiple locations in Minnesota) -- Nationally, $1,000 in extra 401(k) contributions for 58,000 employees.
Note: If you know of other Minnesota examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
More from Americans for Tax Reform
2 Years In, American Workers Are Winning Thanks to GOP Tax Cuts

It has been 2 years since President Donald Trump signed the Tax Cuts and Jobs Act (TCJA) into law and Americans continue to benefit from high wages and a strong job market. Unemployment is down, confidence in the job market is up, and small businesses are thriving.
Here are the numbers:
Since Trump took office in 2017, American businesses have created over 6.7 million jobs. In April, the unemployment rate hit a 50-year low of 3.6 percent, and the rate has been at or below 4 percent for 20 consecutive months. Currently, there are 157 million Americans in the workforce and the labor force participation rate is at 63.3 percent, a stark contrast to the 40-year lows seen under the Obama administration.
Small businesses have continued to offer more jobs with higher wages thanks to the Republican TCJA and the Trump administration’s deregulation efforts. The NFIB Small Business Optimism index, a measurement of the confidence small businesses have in the economy, recently increased to a historically solid reading of 102.4.
Americans are confident enough in the economy and the job market to leave their jobs and search for new career opportunities. In September 2019, there were 5.8 million job separations, 3.5 million of which were voluntary. After leaving their jobs, Americans have access to a record-high 7 million job openings. The ratio of unemployed persons to job openings stands at a record-low 0.9 percent, meaning there are more openings than people looking for jobs.
The TCJA is the product of a pro-growth administration and its successes will only be amplified over time. As a result of the legislation, 90 percent of wage earners received a tax cut. Americans are now able to control the way a larger portion of their income is spent, saved, or invested. In 2018, GDP grew $179 billion more than expected, and this will compound over 10 years to more than $6 trillion in growth. Additionally, the TCJA is predicted to create 1.2 million new jobs in total by 2027.
The results are in: the Trump administration’s winning combination of tax cuts and regulatory relief have led to record low unemployment, record high job openings, and strong growth for small businesses.
While Democrats are committed to thwarting economic growth with proposed tax hikes and $30 trillion plans for a total government takeover of healthcare, President Trump and Republicans in Congress have delivered win after win for the American worker.
Photo Credit: The Epoch Times
Iowa Examples of Tax Reform Good News

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Iowa. (Additions to this list can be sent to jkartch@atr.org)
Geetings, Inc. (Pella, Iowa) -- Was able to purchase new semitrailers and give employees raises because of the Tax Cuts and Jobs Act.
When small business owners anticipated how much they would save in taxes under the federal Tax Cuts and Jobs Act, many reinvested those savings in their businesses and their employees.
Lana Pol, who owns several small businesses including Geetings, Inc., a transportation firm in Pella, says she gave employees raises and purchased six new semitrailers. -- June 3, 2019 Des Moines Register
Smokey Row Coffee Shops (Des Moines, Iowa) -- Because of the Tax Cuts and Jobs Act, the company is planning to open two new stores.
When small business owners anticipated how much they would save in taxes under the federal Tax Cuts and Jobs Act, many reinvested those savings in their businesses and their employees.
...
Butch Hayes, of Smokey Row Coffee Shops, is planning to open two new stores. -- June 3, 2019 Des Moines Register
Global Water Services (Lisbon, Iowa) -- Hired new employees and built a new warehouse because of the Tax Cuts and Jobs Act.
When small business owners anticipated how much they would save in taxes under the federal Tax Cuts and Jobs Act, many reinvested those savings in their businesses and their employees.
...
The owner of Global Water Services in Lisbon, Keith Huebner, built a new warehouse and added employees. -- June 3, 2019 Des Moines Register
Anfinson Farm Store (Cushing, Iowa) -- $1,000 bonuses and 5% pay raises for employees:
Anfinson Farm Store, a family business in Cushing, Iowa (population 223), has awarded $1,000 bonuses and raised wages 5% for all full-time employees as a result of tax reform. The good news was delivered to employees in person just after Christmas.
In an interview with Americans for Tax Reform, store owner John Anfinson said tax reform will boost “money that will be available for the business overall and I want to use it in the right places.”
Anfinson has helmed the store for about 45 years. His grandfather started the business as a general store in 1918, so they will soon celebrate 100 years of operation. His customers chiefly grow corn, soybeans, and alfalfa.
“For us, we have a small number of employees. I work every day shoulder to shoulder with everyone,” said Anfinson. “When you work every day with a group of people, you know them and their family and you appreciate everything they do. I value them and the interest they take in our customers. They are the most valuable asset in any business.” – Jan. 9, 2018 Americans for Tax Reform blog post
Keg Creek Brewing (Glenwood, Iowa) - Expanding operations, purchasing new equipment:
“A small brewery in Glenwood, Iowa, in Mills County called Keg Creek is expanding their operations and investing in new equipment as they grow.” - June 11, 2018, Rep. David Young statement on U.S. House Floor
Dyersville Die Cast (Dyersville, Iowa) - $200 bonus for all eligible full-time employees; $50 monthly bonus for at least twelve months for all eligible full-time employees; $150,000 in total on bonuses:
“Dyersville Die Cast employees will be getting bonuses thanks to the recently passed tax reform bill.
Full-time employees who were with the company prior to Oct. 1, 2017 will receive a $200 bonus on March 9. But, that’s not all.
All full-time, hourly employees will also be receiving $50 monthly bonuses for at least the next 12 months.
In addition, employees will still receive their regular “profit bonus” in June, according to General Manager Bob Willets.
The big news is thanks to that fact that Dyersville Die Cast is slated to save approximately $200,000 thanks to the new tax law, and have decided to dole out $150,000 of that to its workers” – Feb. 21 2018, Dyersville Commercial article excerpt
Pattison Sand Company (Clayton, Iowa): $600 cash bonuses, base pay raised by $1.50-$2.50 per hour:
“Last fall, Congressman Rod Blum visited our mine in Clayton County. He met many of our people and saw for himself what we do every day. We told him about the high costs of over-taxation and over-regulation. He listened. He did his part, taking our message back to Washington. He fought for real tax reform that will bring our business taxes in line with other industrialized countries. More importantly it will mean more take home pay for our people. He is also working put more common sense into federal regulations. We did our part too. We gave every employee a $600 cash (in $2 bills) bonus and we raised base pay by $1.50-$2.50 an hour. And yes we are growing, adding staff and buying more equipment. We thought you should know.” – The Waterloo- Cedar Falls Courier
Cedar Rapids Toyota (Hiawatha, Iowa) – $500 bonuses to each full-time employee:
The car dealership off Boyson Road in Hiawatha expects to see a savings on its taxes under the federal tax reform bill that taxes effect next month. Instead of investing in the facility or new equipment, the company invested in its people.
Owner Scott Ryan decided to give each full-time employee a $500 tax break. The company sees the bonus checks as a way to give back to both the employees and the community, thinking many of the employees will spend the extra money around town. – Jan. 19, 2018 KCRG TV9 news report
Employers Mutual Casualty Insurance (Des Moines, Iowa) -- $1,000 bonuses for employees with the exception of Vice Presidents and above.
Iowa American Water Co. (Davenport, Iowa) – The utility will pass along tax savings to customers:
And Iowa-American Water Co., which provides service in eastern Iowa, would provide $1.5 million and $1.8 million to customers. – Jan. 29, 2018 Des Moines Register article excerpt
MidAmerican Energy Company (Des Moines, Iowa) - the utility will pass along tax reform savings to customers:
Thanks to tax reform, utility bills will start going down soon. MidAmerican Energy says bills will be lowered for its Illinois customers starting in April, and probably for Iowa customers in May.
Spokeswoman Tina Hoffman says the company's tax rate dropped from 35 to 21 per cent, and as a result Illinois electric and natural gas customers will save about 50 dollars per year. The average Iowa customer would save 30 dollars.
But tax reform will affect more than just MidAmerican's corporate tax rate.
"And what we're proposing to do is create an account that captures these benefits that will help us in the long-term make sure that we reduce the size of even the need for future rate cases. So eventually that keeps rates low for customers well into the future."
Hoffman says the Illinois Commerce Commission has already approved the company's proposal and the savings should show up in residential bills this month. However the Iowa Utilities Board has not yet approved MidAmerican's proposal but she thinks it could lower Iowa bills beginning in May. – April 2, 2018 WVIK Article
Ohnward Bancshares (Maquoketa, Iowa) -- $1,000 bonuses for all 260 employees:
"As a result of the passage of the tax relief bill this week, Ohnward Bancshares has announced it will pay a $1,000 tax relief, holiday bonus to every company employee. This bonus is separate, and, in addition to, normal bonuses received based on company performance. “There has been a lot of debate about what a tax cut will do for the nation’s economy. This sweeping tax reform will create economic growth in our communities, but only if the expense savings are shared”, comments the Ohnward leadership team, Abram Tubbs, Brigham Tubbs, Alan Tubbs and Kendra Beck." – Dec. 21 2017, Ohnward Bancshares press release
Bank Midwest (Spirit Lake, Iowa) -- $500 bonuses for full-time employees; $250 bonus for part-time employees.
T.J. Maxx – 11 stores in Iowa – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
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A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
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An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
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Instituting paid parental leave for eligible Associates in the U.S.
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Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
AT&T -- $1,000 bonuses to 541 Iowa 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 -- 10 locations in Iowa, bonuses for all hourly employees, up to $1,000
Lowe's -- 1,000 employees at 11 stores in Iowa. 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 in West Des Moines) -- $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.
Bank of America (Multiple locations in Iowa) -- Iowa-based employees of Bank of America will receive $1,000 bonuses.
Cintas Corporation (Multiple locations in Iowa) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.
Comcast (Multiple locations in Iowa) -- $1,000 bonuses; at least $50 billion investment in infrastructure in next five years.
Ryder (Eleven locations in Iowa) – Tax reform bonuses for employees totaling $23 million nationwide.
Starbucks Coffee Company (89 locations in Iowa) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plant and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave
U-Haul (Multiple locations in Iowa) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Wal-Mart – 59 store locations in Iowa -- Walmart employees are receiving tax reform 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.
McDonald’s (165+ locations in Iowa) – 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:
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- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
- Increased Tuition Investment:
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Wells Fargo – 64 bank locations in Iowa; raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over next three year
Note: If you know of other Iowa examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list