AT&T: Employess Bonuses due to Trump Tax Reform

Marcus Livius

Former Staff
Sep 2017
2,497
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And increase US Capital Spending by $1 Billion.

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.
With Tax Reform, AT&T Plans to Increase U.S. Capital Spending $1 Billion and Provide $1,000 Special Bonus to more than 200,000 U.S. Employees

All those TDS suffering naysayers should start eating crow just about now.
 
Nov 2012
41,310
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Lebanon, TN
Any idea how much cash AT&T has in reserve?
They are bringing 1,000,000,000 from overseas to invest in factories centers in the US and hiring more and more employees

1,000,000,000 dollars that will now be taxed at a reasonable rate.


Darn Trickle down.
 
Oct 2017
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In
People should be praying for real economic growth rather than settling for Obamanomics and its ~2% growth.
 

imaginethat

Forum Staff
Oct 2010
69,496
29,397
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They are bringing 1,000,000,000 from overseas to invest in factories centers in the US and hiring more and more employees

1,000,000,000 dollars that will now be taxed at a reasonable rate.


Darn Trickle down.
A whole $1 billion? Are you sure?

US corporations always were taxed at a reasonable rate.

Trump's Corporate Tax Slash Ignores How Little Companies Already Pay

It is true that tax rates in other parts of the world are lower at the high end. According to the Tax Foundation, the average top corporate rate is 22.5%, across 188 countries (including the U.S.). That is down from 30% in 2003. In Europe, the tax rate is 18.9%, or 26.2% when weighted by country GDPs. (Generally, larger and more developed countries have higher corporate tax rates.)

On the surface it would seem that U.S.-based corporations are more heavily taxed. (They also, in theory, owe taxes on the money made in other parts of the world, even through wholly-owned subsidiaries. Most countries tax only on money made in their geographies. However, this gets complicated because of tax treaties that allow corporations to essentially deduct the taxes they paid in other countries from the associated revenue.)

That is tax in theory. What the U.S. Government Accountability Office found in a 2016 study is that the effective tax rate — the amount paid in taxes relative to taxable income — is far lower. The study examined the tax years of 2006 through 2012. (Remember that this included the worst of the Great Recession, so total revenues were down, though that shouldn't necessarily affect tax percentages.) Below is a graph of the results.



https://www.forbes.com/sites/eriksherman/2017/04/24/trumps-corporate-tax-slash-ignores-how-litte-companies-already-pay/#6b55b64e58aa
 

imaginethat

Forum Staff
Oct 2010
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No idea, but if the plan was to get American companies to start investing their cash, it seems to be working.

Fifth Third & AT&T & Boeing Tax Reform Plans: Companies to Use Money Saved for Bonuses, Investment | National Review
About $6 billion, and:

AT&T Paid No Federal Taxes in 2011; Achieved a $420 Million Taxpayer-Subsidized Refund

And:

1. Boeing

Boeing (BA, +0.24%) pre-tax income: $5.95 billion
CEO James McNerney total pay: $23.3 million
U.S. corporate income tax total: refund of $82 million

2. Ford Motors

Ford (F, +0.28%) pre-tax income: $6.52 billion
CEO Alan Mulally total pay: $23.2 million
U.S. corporate income tax total: refund of $19 million

3. Chevron

Chevron (CVX, +0.88%) pre-tax income: $4.67 billion
CEO John Watson total pay: $20.2 million
U.S. corporate income tax total: $15 million

4. Citigroup

Citigroup (C, -0.05%) pre-tax income: $6.4 billion
CEO Michael Corbat total pay: $17.6 million
U.S. corporate income tax total: refund of $260 million

5. Verizon

Verizon (VZ, -0.13%) pre-tax income: $28.83 billion
CEO Lowell McAdam total pay: $15.8 million
U.S. corporate income tax total: refund of $197 million

6. JPMorgan Chase

JPMorgan (JPM, -0.34%) pre-tax income: $17.23 billion
CEO Jamie Dimon total pay: $11.8 million
U.S. corporate income tax total: refund of $1.3 billion

7. General Motors

GM (GM, +0.07%) pre-tax income: $4.88 billion
CEO Daniel Ackerson total pay: $9.1 million
U.S. corporate income tax total: refund of $34 million

These 7 companies spent more on CEO pay than federal taxes | Fortune

It's no exaggeration to say that US taxpayers are paying some corporations to be in business.
 
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imaginethat

Forum Staff
Oct 2010
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Colorado
People should be praying for real economic growth rather than settling for Obamanomics and its ~2% growth.
Sure. Let's pray real hard and get God on our economy's side. That's how God works: Good economies to the nations that pray the hardest for real economic growth......

JHC
 
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Nov 2012
41,310
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Sure. Let's pray real hard and get God on our economy's side. That's how God works: Good economies to the nations that pray the hardest for real economic growth......

JHC
that is how God works

if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land.
 
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