AT&T to give employees $1,000 bonuses after Trump signs tax bill
President Donald Trump addresses tax reform passing in both chambers of Congress and how corporations are taking the news.
AT&T (NYSE:T) said Wednesday it will give its U.S. employees a special bonus as a result of the Republican tax reform bill.
More than 200,000 employees of the telecom giant will be eligible for a $1,000 bonus, AT&T announced. The company will cut the bonus checks over the holidays if President Donald Trump signs the tax bill before Christmas, as expected.
AT&T said all union-represented and non-management employees, as well as front-line managers, will receive bonuses.
AT&T also announced that once tax cuts are made official, it will enact a plan to invest an additional $1 billion in the U.S. next year.
The $1.5 trillion tax package includes a substantial cut to the federal corporate rate, which will drop to 21% from 35%. The bill will also lower tax rates for individuals and small businesses.
“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,” AT&T Chairman and CEO Randall Stephenson said in a statement. “This tax reform will drive economic growth and create good-paying jobs.”
AT&T is in the midst of a legal battle over its proposed $85.4 billion acquisition of Time Warner (NYSE:TWX). The U.S. Department of Justice sued to stop the merger, citing antitrust issues, while AT&T has vowed to fight the lawsuit. AT&T and the DOJ were unable to reach a settlement deal, according to recent court filings.