Employees Windfall from GOP Tax Plan
Companies Pass Extra Funds to Employees
Everyone that has read the paper, watched the news or researched online about the Tax Cuts and Jobs Act (TCJA) knows that corporations received the biggest windfall with the tax rate dropping for corporations down to 21 percent. The next big wonder was if we would see more golden parachute packs prepared or would the trickle-down economics win in the end?
Some corporations have stood up and said we are going to reward our employees, and that makes this writer very happy to learn. Rewarding the people that keep your corporation running and generating profit is exactly the steps to secure more happier and effective employees. Let’s face the reality, we as people are driven by money, because that is what is used to buy the wants in life.
FedEx has taken what I read as the largest ROI in employees I can see, announcing $200 million investment to increase pay, earmarking two-thirds of that amount to the hourly employee. It also announced enactment of performance based incentive plans for salary employees, and deposited $1.5 billion into the employee pension plan. Needless to say, FedEx shouldn’t see a turn-over rate for a while.
This is all due to the GOP tax plan that created a $1.5 trillion reduction in tax bill by reducing the corporate tax rate from 35% to 21% and changes in the way the U.S. government taxes companies that do business internationally.
A list of other companies that have given back to the workers:
Fifth Third Bancorp
JP Morgan Chase
Walt Disney Co.