The “crumbs” continue to pour in from Corporate America. Weeks after President Donald Trump signed legislation to slash the corporate tax rate from 35% to 21%, businesses – large and small – continue to react favorably. Wall Street may be going through a roller coaster ride, but Main Street is receiving a little more money in their pockets.
Since the start of February, dozens of other companies – from Allstate to Chipotle – have announced they are offering bonuses, raising their minimum wages, and boosting benefits and perks for their staff. And not everyone is happy.
Last week, MSNBC’s Katy Tur mocked an Ohio man for being pleased that he’s getting a $1,000 bonus because it will help him start a family. She alluded to data that suggests it costs $5,000 to give birth to a child in The Buckeye State. But here’s the kicker: the $1,000 is seed money, and he likely plans to work hard, save more, and be responsible for raising his children – not his employer or the state.
Only bitter, entitled, limousine-riding, champagne-drinking socialists at CNN and in the Democratic Party would call private sector wage hikes and improved working conditions “pathetic.”
Which are the latest corporations to extend the savings to their personnel?
February’s ‘Crumbs’ from Insurance Giants
Insurance companies are in the spirit of giving after getting a tax cut and experiencing higher earnings.
Anthem, the health insurance behemoth, announced that it will give $1,000 to more than 58,000 employees and recent retirees amid tax cuts. Speaking in an earnings call, CFO John Gallina confirmed that half of the benefits would be transferred to shareholders and the remaining would be split between corporate investments and customer service.
Another insurance giant, Allstate, reported in its fourth-quarter earnings call that employees will receive one of two options: a $1,000 bonus or $2,000 that can be contributed to either a 401(k) or a health savings account. Moreover, Allstate will invest millions in employee training and its Allstate Foundation to support local causes.
Humana said that it will raise the hourly pay for its full-time employees to a $15 minimum wage. The tax windfall will also be invested in employee training, incentive-based compensation program, and workplace technology. Other funds will be allocated to community programs and to shareholders.
Will any other insurance firms follow suit?
Foods ‘Crumbs’ Don’t Go to Waste
Food industry juggernauts are not letting the tax windfall go to waste.
Thanks to immense company savings, Tyson Foods said that more than 100,000 employees will receive bonuses. According to the Arkansas-based company, full-time employees will get a $1,000 bonus, while part-time workers will see a $500 bonus.
Chipotle is being generous with its tax savings, too. As part of the announcement, Chipotle will hand out $250 bonuses for hourly crew members, $1,000 to general managers, and a one-time stock grant for qualified personnel. The Mexican grill franchise will further expand maternity and parental coverage, accelerated training programs, and life insurance and short-term disability for managers. It is also investing $50 million in existing restaurant locations.
Has Hostess Brands sweetened the pot? The food giant pledged to offer one-time bonuses of $1,250: $750 will be in the form of cash, and $500 will be contributed to their 401(k). One more thing: workers will get one year of free snacks.
A low-tax environment is pretty scrumptious and sweet for the average American these days.
Other Industries Investing in US Workforce
A wide array of other industries continues to make investments in their companies amid tax relief.
Charter Communications wrote in a blog post that it will raise the minimum wage for its 95,000 employees to $15 per hour. This will include target commissions. As part of the reduction in regulations, Charter will also increase its workforce and make capital investments.
Despite its trouble competing in the world of Amazon, Best Buy says it will pay one-time bonuses of $1,000 to full-time staffers and $500 to part-time workers. It won’t stop there: Best Buy is contributing $20 million to the Best Buy Foundation to enhance tech centers and Geek Squad academies.
Once the tax reform bill has been enacted, Lowe’s will hand out $1,000 bonuses to more than 260,000 hourly U.S. employees. In addition, the colossal home improvement chain will establish a new benefits system, such as adoption assistance of up to $5,000 and paid maternity and parental leave.
The Road to 2018 Midterms
The Republican Party has been marred with electoral loss after electoral loss. Since September, the GOP has been suffering many defeats, including in Alabama, New Hampshire, Wisconsin, and Oklahoma.Last week, Democrats won a Missouri House seat in a special election in a district that President Trump won in a landslide.
In addition to electoral upsets, dozens of Republican representatives and senators have announced their retirements, resignations, or pursuits of higher office.
In the wake of these events, Governor Scott Walker (R-WI) has urged the Republican leadership to look at these trends as a “wake up call.” Meanwhile, Speaker of the House Paul Ryan (R-WI) has promised to perform an autopsy to determine what the heck is going on.
Should Republicans be really concerned ahead of the midterm elections in November? Here is an old adage for President Trump and the party: it’s the economy, stupid!
Despite the media’s obsession with approval ratings, it has been learned that other metrics are the real approval ratings. In the last several months, business indexes have been positive, consumer confidence has been rising, and investor sentiment is high. Wages are going up, U.S. companies are investing in the country, and job creation continues to increase. In November, the voter will examine their wallet, not the president’s tweets.
Are you confident in Republicans ahead of midterm elections? Let us know in the comments section!