Bank of America joins the tax cut bonus club
Another giant U.S. corporation announced bonuses on Friday that are directly related to a sweeping reform of America's income tax code.Some liberals are getting angry that their statements about the effect of the tax cuts have been found invalid so quickly. Instead of being happy about the benefit low-end workings are getting immediately they are attacking teh companies giving teh bonuses.
Bank of America said it would cut $1,000 holiday checks to more than 145,000 of its employees – all non-executives who earn less than $150,000 per year.
Goldman Sachs analysts estimated in December that the Republican tax cuts, which include a reduction in the corporate rate from 35 per cent to 21 per cent, would likely boost the earnings of big banks by more than one-eighth in 2018.
CEO Brian Moynihan said in a letter to his workforce that 'in the spirit of shared success, we intend to pass some of those benefits along immediately.'
President Donald Trump had already extended his tax-cut victory dance Friday morning, taking credit for a wave of corporate bonus announcements in the wake of his legislative victory on Wednesday.
'Our big and very popular Tax Cut and Reform Bill has taken on an unexpected new source of "love" – that is big companies and corporations showering their workers with bonuses,' the president wrote on Twitter.
'This is a phenomenon that nobody even thought of, and now it is the rage. Merry Christmas!'
Sinclair Broadcast Group said Friday that 'as a result of tax reform legislation, it will pay a $1,000 bonus to almost 9,000 full-time and part-time regular employees at all of its stations and subsidiaries, excluding senior level executives.'
AT&T had said Wednesday that it will pay $1,000 bonuses to more than 200,000 employees once a tax reform bill approved by Congress is signed into law.