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The Corporate PR Machine Is Primed for Tax Cuts

22 December 2017

"Congress, working closely with the President, took a monumental step to bring taxes paid by US businesses in line with the rest of the industrialized world", said AT&T CEO Randall Stephenson in a statement, adding that his own company would invest in its employees.

"Congress, working closely with the president, took a monumental step to bring taxes paid by US businesses in line with the rest of the industrialized world", Randall Stephenson, chairman and CEO of AT&T, said in a statement.

AT&T, for instance, said it would pay a special $1,000 bonus to more than 200,000 of its non-management workers, once the tax law kicks in. "That's because of what we did", he said. "So that's pretty good".

Comcast, AT&T, Wells Fargo and other major companies left Americans wide-eyed Thursday after announcing wage raises and holiday bonuses of up to $1,000 to hundreds of thousands of workers on the heels of a sweeping tax reform bill approved in Congress. Wells Fargo said it will boost its minimum wage to $15 an hour, as well as donate $400 million to nonprofit and community organizations. "Capital expenditures tend to be 'lumpy.' Providers make significant expenditures to upgrade and expand their networks in one year (e.g., perhaps because a new generation of technology has just been introduced), and then focus the next year on signing up customers and integrating those new facilities into their existing networks, and then make additional capital expenditures later, and so on".

House members voted on Wednesday to pass a bill that would cut the corporate tax rate to 21 percent from 35 percent.

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The stock market has soared in anticipation of the cuts with the expectation that they will lead to higher profits, bigger dividend payments and share buybacks.

Since the Senate passed their initial tax overhaul, 32 companies have announced share buybacks totaling $83.7 billion, Schumer's office said.

Some of the cash windfall from corporate tax cuts is already trickling down to Main Street workers.

Congressional Republicans slashed company taxes from 35 percent to 21 percent on December 20, freeing up millions or even billions of dollars of profit. Wells Fargo will also invest $100 million over three years to provide small businesses access to capital. Wells Fargo is facing an additional inquiry for wrongly charging fees to secure low mortgage rates.

Ohio-based Fifth Third Bancorp says it will pay a $1,000 bonus to more than 13,500 employees, as well as raise the minimum wage for 3,000 of its workers to $15 an hour.

The Corporate PR Machine Is Primed for Tax Cuts