If it feels like we've been reporting new, positive pieces of tax reform news virtually every day, that's because we have. One company after another has been running the math on how the GOP tax law -- opposed by literally every Democrat in Congress -- benefits them, and are moving accordingly to reinvest significant portions of their fresh windfalls into their employees and business plans. The result has been millions of American workers experiencing bonuses, wage increases, and enhanced benefits, in addition to expanded operations, new job creation, and hefty corporate charitable contributions. Another titan of American business has now unveiled its tax reform-fueled investments:
Details, via Reuters:
Package delivery company FedEx Corp said on Friday it will spend more than $3.2 billion on wage increases, bonuses, pension funding and capital investment, taking advantage of the U.S. tax overhaul signed into law in December...The Memphis, Tennessee-based company said it would invest $1.5 billion to significantly expand its hub in Indianapolis over the next seven years and modernize and enlarge its Memphis SuperHub. The new tax code allows companies to immediately write off the full value of capital costs, which helps make projects more financially attractive...FedEx, which said the recent tax changes would likely boost economic growth and investment in the United States, also said it would contribute $1.5 billion to an employee pension plan. The company plans more than $200 million in higher compensation, about two-thirds of which will go to hourly employees with the remainder funding increases in performance-based incentive plans for salaried workers.
Bonuses, wage boosts, operational expansion, and more generous benefits. Here is FedEx's formal announcement. The company employs roughly 400,000 people worldwide. Over in another sector of the US economy, American Family Insurance has announced its contributions to the ongoing tax reform bonanza. Congratulations, AFI workers:
The company will use the tax reform to enhance employee benefits and reinforce the company’s commitment to its people for putting customers first and remaining an employer of choice. In the longer term, customers are expected to benefit, too, with the tax savings impacting pricing. Among the new benefits is a $1,000 one-time bonus for 11,000 employees, excluding officers and the board of directors, at American Family. This bonus is made possible because of the reduction of the federal corporate tax rate in 2018. The company’s independent contractor agents will also have the opportunity to earn a higher incentive for strong customer satisfaction...Enhanced benefits also extend directly to nonprofits that support communities. In 2018, American Family will contribute $10 million to its Dreams Foundation which supports programs and provides grants to nonprofits...Along with these one-time enhancements, the company is making permanent changes to its benefits program – many of the updates are focused on supporting employee education...Also new, the company’s family leave program will now provide American Family employees with paid leave to care for an ill child of any age or for a spouse or domestic partner. This is in addition to family leave to care for aging parents and the birth or adoption of a child.
It's not just a one-off bonus. It's stepped-up philanthropy and permanent improvements to employee benefits programs. Even as these "crumbs" pile up into mountains, positively influencing public opinion along the way, this is an important warning for Republicans to keep in mind:
Last 6 weeks, Congressional Leadership Fund surveyed 69 congressional districts. The tax bill is underwater in 52 districts, and in 50, a plurality of voters believe the tax bill will increase their taxes.— Alex Rogers (@arogDC) January 25, 2018
There's still an enormous amount of disinformation in the bloodstream about this law, and those myths must be actively tackled and dispelled. Headlines about the Fed Ex and American Family Insurance developments must be trumpted far and wide. The drumbeat will not sustain itself, even if the material is there. And yes, people personally experiencing higher take-home pay due to tax cuts kicking in for 80 percent of Americans will also help matters. But people have to be reminded of what caused that outcome, especially since majorities do not believe they're going to receive a tax cut from the GOP-passed law. They will, no thanks to Democrats, whose lies and fear-mongering should be highlighted and punished.