Photo: LoadedAaron/Flickr/CC BY-ND 2.0
Manufacturers have promised that bold tax reform will allow them to invest more money back into their business and their employees. Two weeks after President Donald Trump signed the bill into law, the benefits are already materializing for middle-class American workers.
Both Southwest Airlines and American Airlines announced on Tuesday that they would be paying each of their employees a $1,000 cash bonus due to the new reforms:
American Airlines will distribute the bonus to each team member, excluding officers, at its mainline and wholly owned regional carriers, according to an internal memo seen by Reuters.
The distributions will total approximately $130 million and will be made in the first quarter of 2018, the company said.
Southwest said in a statement that as well as paying the bonus to all employees in January, it was increasing its fleet investment with Boeing and had donated $5 million to charitable causes.
The new legislation would “result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular,” said Southwest’s Chief Executive Officer Gary Kelly.
Southwest also added that it plans to invest money back into its business and look into buying 40 new jets from Boeing, as well as donate $5 million to charity. Boeing announced last month that it, too, plans to invest $300 million into its employees and community charities due to tax reform.
“We’re going to be able to have quite a few substantial dollars after taxes. That money should go to the people who built the company.”