Over the years, the retail industry has been begging Congress to issue comprehensive tax reform. And it’s easy to understand why. The retail industry bears one of the highest tax burdens.
Now that tax reform has become federal law, retailers, large and small, have joined other industries, from aerospace to oil and gas and utilities, in unveiling plans to pass along their savings to employees and customers.
All told, companies have announced billions of dollars in one-time bonuses for employees and multibillion-dollar expansions and projects across the U.S. The University of Pennsylvania's Wharton School of Business is estimating a surplus in savings by sector of $1.3 trillion from 2018 to 2027. Among the largest beneficiaries are manufacturing ($262 billion) finance and insurance companies ($249 billion) and retail ($171 billion).
Here’s a recap of what some of those companies are doing with their savings:
Walmart Inc. (WMT, Financial) was among the first to announce a one-time cash bonus for employees. It plans to boost starting wages to $11 an hour, expand its parental and maternity leave policy and provide adoption benefits.
CVS Health Corp. (CVS, Financial) also said it would increase its starting pay for hourly employees to $11 per hour and offer up to four-weeks of paid parental leave.
Starbucks Corp. (SBUX, Financial) said it was investing $250 million in its partner workforce, including $250 million in wages, stocks and benefits.
Exxon Mobil Corp. (XOM, Financial) announced last week that it was planning to invest $50 billion in U.S. projects over the next several years, as a result of tax reform.
AT&T Inc. (T) expects to invest an additional $1 billion the U.S. this year. It also will pay a $1,000 bonus to more than 200,000 U.S. employees.
Walt Disney Co. (DIS, Financial) is giving 125,000 employees a $1,000 cash bonus and investing $50 million in a new higher education tuition reimbursement program for hourly workers.
Apple Inc. (AAPL) plans to invest $350 billion over the next five years in the U.S., where it will add more than 20,000 jobs.
Darden Restaurants Inc. (DRI, Financial), parent company of Olive Garden and Longhorn Steakhouse, said it would spend an additional $20 million on its workforce in 2018.
Verizon Communications Inc. (VZ) is distributing 50 shares of stock to each of its employees.
Lowe’s Companies Inc. (LOW) and The Home Depot Inc. (HD, Financial) are paying up employee bonuses.
Lowe’s said it’s going to offer a one-time bonus of up to $1,000 for 260,000 hourly employees and expand maternity and parental leave, as well as adoption assistance.
At Best Buy Co. Inc. (BBY), more than 100,000 employees are being handed bonuses of $500 to $1,000 each. The company is also investing $20 million in technology training for young people.
Chipotle Mexican Grill Inc. (CMG) is providing qualified employees cash and stock bonuses. It is also going to invest in employee training programs, life insurance and short-term disability coverage and improve parental leave programming.
Boeing Co. (BA, Financial) will spend $300 million on employee-related charitable investments.
Atmos Energy Corp. (ATO, Financial) announced it would pass along $100 million in savings to over 3 million customers in upcoming months. That’s all thanks to tax reform, the company says.
JPMorgan Chase & Co. (JPM, Financial) last month announced a $20 million package to improve employee wages, expand banking centers and affordable housing across the U.S.
Tyson Foods Inc. (TSN, Financial) will give bonuses to more than 100,000 employees.
Southwest Airlines Co. (LUV, Financial) and American Airlines Group Inc. (AAL, Financial) are handing out $1,000 bonuses as well.
