Companies Giving One Time Bonuses Cite New Tax Law

While working on the tax bill late last year, Republican Congressional leaders frequently mentioned this was being done for the middle class.    At the time there was discussion that if was really the goal of the tax plan, there were much simpler ways to accomplish that.

Today, several companies announced one time bonuses, hourly, wage increases, or both.  Those that sold the plan (and those that want to believe in it) were quick to cite the tax bill as the reason and claim success.   Democratic Congressional leaders were equally quick to counter as written in the Business Insider post below.   

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Nancy Pelosi says companies' bonuses to workers because of the tax bill are 'crumbs' Bob Bryan Business Insider House Minority Leader Nancy Pelosi on Thursday dismissed as "crumbs" the recent wave of bonuses given to workers by large corporations in the wake of the Republican tax law's passage. "In terms of the bonus that corporate America received versus the crumbs that they are giving workers to kind of put the schmooze on is so pathetic," Pelosi told reporters. "It’s so pathetic." Pelosi's comments came as many large companies have announced one-time bonuses for workers and pay increases as a result of the tax bill. Companies including AT&T, Wells Fargo, and Visa have all announced various pay increases, one-time bonuses, or benefits increases, citing the tax bill as a factor. The White House particularly highlighted an announcement by Walmart on Wednesday. The retail giant said it would increase its minimum hourly wage to $11 an hour and offer long-time employees a $1,000 bonus. Analyses have shown that companies and wealthier Americans are likely to picket the bulk of the benefits from the tax code changes. Critics of the moves have dismissed the increases as public relations stunts designed to draw favorable coverage and praise from Republicans. Pelosi, for instance, noted some of the bonuses are coming as firms continue layoffs of employees. <more>

Walmart to raise its starting wage to $11, give some employees bonuses following tax bill passage Lauren Thomas | Courtney Reagan CNBC Walmart is raising its starting wage to $11 Walmart is raising its starting wage to $11  7 Hours Ago | 00:46 Walmart's workers will soon reap the benefits of the recent tax law changes, as the world's largest private employer raises its starting wage, creates new benefits and distributes bonuses to eligible workers. The big-box retailer announced Thursday it will increase its starting wage rate for hourly employees in the U.S. to $11, and expand maternity and parental leave benefits. Currently, Walmart's starting wage is $9 until workers complete a training program. Then, they receive $10. Walmart will also pay a one-time cash bonus to eligible employees of as much as $1,000. The payouts, which should total roughly $400 million, will result in a one-time charge that the company will take in its fiscal fourth quarter. The bonuses will be determined by an employee's length of service. Those workers with more than 20 years of experience will qualify to receive the full $1,000. However, workers with less than two years of experience will receive $200, a Walmart spokesman told CNBC. Employees with 15 to 19 years of service at Walmart will receive $750, while those with 10 to 14 years of work there will receive a $400 bonus, he said. Five to nine years of experience merits a $300 bonus, while two to four years of service will result in a payout of $250. <more>