Now that both houses of Congress have passed tax reform legislation, AT&T is living up to a promise. Once the bill is signed into law, which is expected in a few days, the carrier plans to invest an additional $1 billion in capital expenses in the U.S in 2018 — plus pay a “special” bonus to employees, it announced. As of the third quarter, AT&T reported it had about $16.5 billion in capital expenditures in 2017.
AT&T says it will pay a $1,000 bonus to more than 200,000 employees — all union-represented, non-management and front-line managers. If President Donald Trump signs the bill before Christmas, employees would receive the extra money 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 AT&T Chairman/CEO Randall Stephenson. “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.”
AT&T previously said that it would invest $1 billion in the U.S. if “competitive” tax reform legislation passed, Inside Towers reported. The carrier said tax reform framework could increase demand for its services.
The new tax law would drop the corporate tax rate from the current 35 percent to 21 percent and includes other incentives supporters say will spur businesses to increase domestic spending, reports CNBC.
AT&T recently settled a strike with more than 20,000 union members, Inside Towers reported. The proposed settlement covers 21,000 members of the Communication Workers of America in 36 states and the District of Columbia. Many AT&T workers already expected to receive 10 percent raises and $1,000 lump-sum back pay, as part of the proposal, CNBC reported. The “special” bonus would be in addition to what’s in the agreement.
December 21, 2017
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