Big businesses share Trump tax cut with workers

President Donald Trump speaks about the passage of the tax bill on the South Lawn at the White House in Washington. Photo / AP

Some of America's biggest companies gave workers a Christmas cheer Wednesday as they passed on some of their winnings from a dramatic corporate tax cut.

AT&T said that it will pay US$1,000 ($1,427) bonuses to more than 200,000 employees - and promised to make US$1 billion ($1.4b) in new investments in the United States next year - once a tax reform bill approved by Congress is signed into law.

The Republican-controlled House and Senate have given final approval to the biggest overhaul of the US tax code in 30 years, sending the sweeping bill to President Donald Trump for his signature, according to the Daily Mail.

As part of that bill, the tax rate on corporations will drop from 35 per cent to 21 per cent.

Trump previously called the measure "rocket fuel" for the economy.

After AT&T's announcement, other companies followed suit.

Comcast NBCUniversal said it would award US$1,000 ($1,427) bonuses to more than 100,000 workers, "based on the passage of tax reform" and a recent FCC decision to repeal "net neutrality" rules.

The cable and Internet giant also boasted that it "expects to spend well in excess of US$50b ($71.3b) over the next five years investing in infrastructure."

Boeing said it would make a "US$300 million ($428m) employee-related and charitable investment as a result of #TaxReform legislation."

And Fifth Third Bancorp in Cincinnati, Ohio said it will pay US$1,000 ($1,427) bonuses to more than 13,500 employees and raise the minimum wage for its workforce to US$15 per hour ($21.40) because its tax rate is about to plummet.

Wells Fargo matched that US$15 ($21.40) per hour minimum wage hike and said it was prompted by the tax plan. The San Francisco-based bank also said it would make US$400m ($570m) in donations to nonprofit charities and other community organisations in 2018.

FedEx also showed optimism, with its CFO saying during an earnings call that the package shipping giant will likely expand if the tax cuts lead to larger national economic growth.

"GDP could increase materially next year as a result of US tax reform. If this occurs, we would likely increase capital expenditures and hiring," Alan Graf told investors.

In a victory-lap event on the White House's South Lawn, Trump read aloud a news account of the AT&T decision and said more like it are coming.

"That's because of what we did," he said. "So that's pretty good."

"I mentioned AT&T," he said minutes later, "but many companies have come forward and [are] saying they're so happy, and they're going to be doing similar announcements."

Roughly 100 GOP lawmakers came out to celebrate Wednesday with the president. Members of the president's cabinet and White House staff were also there. Photo / AP

In a letter to employees, AT&T CEO Randall Stephenson said the bonuses would be paid to all "union-represented, non-management, and 1st and 2nd line managers."

"If the President signs the bill before Christmas, employees will receive the bonus over the holidays," the company added.

The missive to AT&T's workforce said the new 21 per cent corporate tax rate would put the US "in line with the rest of the industrialised world."

"This new lower rate encourages businesses to invest more in the United States. And more investment creates more good-paying jobs and increases economic growth."

Just minutes before AT&T announced its employee bonuses, Senate Minority Leader Chuck Schumer excoriated the company as a greedy corporation that would use its tax cut to buy back its stock and reward its executives.

"Over the last ten years, AT&T has paid an average tax rate of 8 per cent a year. They have 80,000 fewer employees today than they had then," the New York Democrat complained.

"Tax breaks don't lead to job creation. They lead to big CEO salaries and money for the very, very wealthy."

House Minority Leader Nancy Pelosi, a California Democrat, said the Republican tax cuts represented "the worst bill in the history of the United States Congress."

But Trump predicted that an outpouring of domestic investment from American companies would be "very special."

"We're bringing the entrepreneur back into this country. We're getting rid of the knots and all the ties and we're going to – you're going to see what happens," he said.

"And ultimately what does it mean? It means jobs. Jobs jobs, jobs."

AT&T is involved in a takeover attempt of Time Warner, the parent company of CNN, which has put them at odds with Trump's Justice Department.

The DoJ is opposing it on competition grounds, and the case is set to make its way to court.

AT&T's rapid praise for the president may well be seen as a gesture intended to soften Trump's opposition to the merger.

But on the South Lawn the merger was not mentioned amid jubilation at the first major legislative achievement of the Trump presidency.

"We are making America great again!" Trump said at the outdoor ceremony.

Vice President Mike Pence, who was up late last night presiding over the final vote in the Senate, declared the bill's passage a "middle class miracle" and shouted, "Merry Christmas America!"

GOP leaders congratulated Trump on the legislative achievement - the first major one of his presidency - one-by-one in remarks that praised him as the greatest executive officeholder in decades.

President Donald Trump shakes hands with Speaker of the House Rep. Paul Ryan. Photo / AP

"Something this big, something this generational, something this profound could not have been done without exquisite presidential leadership. Mr. President, thank you for getting us over the finish line," said House Speaker Paul Ryan.

Senate Majority Leader Mitch McConnell likewise said, "America is going to start growing again. Thank you Mr. President for all you're doing."

"But for your leadership, we would not be here today," House Ways and Means Chairman Kevin Brady piled on.

Rep. Kevin McCarthy, the House majority leader, at his turn said, "This is a big day for America. This is America's comeback.

"Come February check your check, because that will be the pay raise of the vote for Donald Trump," McCarthy stated.

Senator Orrin Hatch, the Senate Finance Chairman, effusively said that Trump was "one heck of a leader" and the bill "could not have passed without you."

"We're making headway. This is just the beginning," the Utah senator who has not declared his intent to run for re-election next year said. "I just hope that we call get behind him every way we can and we'll get this country turned around in ways that will benefit the whole world."

Hatch said, "We're gonna make this the greatest presidency that we've seen not only in generations but maybe ever. God bless all of you."

The president told lawmakers in his remarks that the negotiation process has "been an amazing experience," and Republicans have now "broke every record" with the size of tax slash.