The CEO of a software-development firm issued $1,000 bonuses to his employees with a notation in the memo on each check “Trump Tax Cut and Jobs Act.”
Sheldon Wolf of Tampa-based Spellex told “Fox & Friends” Wednesday morning he was inspired by news that companies such as AT&T and Bank of America were giving $1,000 bonuses to their employees.
“I wanted to do it because I’m excited about the new tax plan from Trump and the GOP, and I wanted to ‘share the wealth,’ as they say,” Wolf explained.
More than 50 companies have announced employee bonuses and/or wage increases in response to the bill’s tax cuts. Last Thursday, the nation’s largest private employer, Walmart, announced it was raising its minimum hourly wage and handing out bonuses of up to $1,000.
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Wolf noted his employees are mostly “Generation Xers and Milennials” who are “not particularly into politics.”
“But it really impacted them, when they got in their hand a check for $1,000 that plainly said this is why you’re getting this check, because of the change in the new tax plans,” Wolf said.
Fox News host Steve Doocy commented that many of Wolf’s employees may not be “fans” of President Trump, but “they’ve gotta feel like this is great.”
“They were all very happy about it,” Wolf replied. “And, yes, I don’t think they’re particularly fans of President Trump, but nobody was complaining. They were all happy.”
Doocy asked Wolf what he thought of House Minority Leader Nancy Pelosi’s recent comment that the bonuses and wage hikes announced by businesses in response to the Republican tax-reform bill were mere “crumbs.”
“It really amazed me that somebody can find something wrong with the fact that millions of employees — probably 80 to 90 percent of the workforce — are going to be able to keep additional funds that they were giving to the government,” said Wolf.
Walmart, which has more than 1 million U.S. hourly employees, said the bill, which cut the U.S. corporate tax rate cut from 35 percent to 21 percent, will directly benefit its workers.
“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” said Walmart CEO Doug McMillon in a statement.
“It’s our people who make the difference and we appreciate how they work hard to make every day easier for busy families.”
Immediately after the bill passed Dec. 20, AT&T and Comcast announced bonuses of $1,000 to non-management workers, and Wells Fargo and Fifth Third Bancorp increased base hourly pay to $15. Boeing announced a gift of $300 million in investment in its employee-related charitable program “to support our heroes, our homes and our future.”
Comcast NBC Universal gave $1,000 bonuses to more than 100,000 non-executive employees, announcing the move was not only tied, like all the others, to the tax cut but to the Federal Communications Commission’s elimination of government regulation of the Internet. The company said it plans to spend more than $50 billion in the next five years on infrastructure investments that he expects will create “thousands of new direct and indirect jobs.”
Before the bill passed, Kroger Chief Executive Officer W. Rodney McMullen offered that the legislation would influence his company “to continue to invest in our business, which will grow jobs.”
Walmart said its wage increase will take effect in February. The company also plans to boost its paid maternity leave policy for full-time hourly workers to 10 weeks at full pay. The current policy is six to eight weeks at half pay. Walmart also announced it will offer financial help to full-time hourly and salaried employees seeking to adopt children.
Passed in both chambers with no Democrat votes, the bill cuts the corporate tax rate from 35 percent to 21 percent. It also doubles the standard deduction to $24,000 for married couples and doubles the child-tax credit to $2,000, with up to $1,400 available in refunds for families who owe little or no taxes. The bill maintains seven personal income tax brackets and lowers the tax rates for most brackets, reducing the top rate to 37 percent from 39.6 percent.
The Republican leadership promised the impact of the tax bill will begin to show up in paychecks in February as the amount withheld for federal taxes is reduced.
Some Republican members of Congress in the high-tax states of California, New Jersey and New York opposed the bill because it puts a $10,000 cap on the deduction of state, local and property taxes.
The left-leaning Tax Policy Center concluded 80 percent of taxpayers will get a significant tax cut while less than 5 percent will see a tax increase of more than $10.
The Congressional Budget Office’s “static” score of the bill, which doesn’t include projected economic growth, concludes the deficit would grow by about $1.5 trillion in the next decade. However, Republicans, pointing to the tax cuts of Presidents John F. Kennedy and Ronald Reagan, argue the bill will result in economic growth that will produce more revenue and, therefore, more taxes collected.