Drudge Retort: The Other Side of the News
Wednesday, December 20, 2017

CNBC: AT&T to invest $1 billion following tax reform passage.

AT&T was quick to respond to news of U.S. tax reform, announcing it would give some employees bonuses once the law is official. The telecom giant said in a press release on Wednesday that it would give more than 200,000 U.S. union members a special bonus of $1,000.

The company also increased its capital expenditures budget by $1 billion in the U.S. "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," CEO Randall Stephenson said in a statement. "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."

Advertisement

Advertisement

More

Alternate links: Google News | Twitter

AT&T had previously said it would invest $1 billion in the U.S. if "competitive" tax reform legislation was passed, and has said that tax reform framework could increase demand for AT&T's services. The new tax laws are expected to drop the corporate tax rate to 21 percent from the current 35 percent and includes other measures that Republicans say will spur businesses to invest domestically.

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

Pretty sure that everyone on the DR Left said this would never happen.

It will be interesting to see the reaction from the IBEW and AFL/CIO in response to this news.

#1 | Posted by Rightocenter at 2017-12-20 03:58 PM | Reply | Newsworthy 2

Bonuses are nice! Increases to base pay and to benefits package are even better.

#2 | Posted by Gal_Tuesday at 2017-12-20 04:01 PM | Reply | Newsworthy 1

What would also be nice is passing some of their tax cut savings on to consumers by lowering prices. Maybe all of that will come to pass in the near future.

#3 | Posted by Gal_Tuesday at 2017-12-20 04:03 PM | Reply

"Pretty sure that everyone on the DR Left said this would never happen"

0.16% of Americas workforce today
wow. what a big deal.
tremendous

#4 | Posted by ChiefTutMoses at 2017-12-20 04:05 PM | Reply | Newsworthy 2

Ah, here's a good insight:

John Podhoretz @jpodhoretz

John Podhoretz Retweeted CNBC Now
Man it wants that merger to go through

CNBC Now‏ @CNBCnow

JUST IN: AT&T announces it will "pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees" due to tax reform passage and will also increase US capital spending by $1 billion.

#5 | Posted by Gal_Tuesday at 2017-12-20 04:06 PM | Reply

My company said they don't pay any taxes because of financials so it won't translate into raises for us. :/

#6 | Posted by Pirate at 2017-12-20 04:06 PM | Reply

Maybe all of that will come to pass in the near future.

#3 | Posted by Gal_Tuesday

You are so cute!

I bet AT&T is ecstatic right now. It was like a MegaChristmas for sure.

Billions in tax breaks and net neutrality gone, too!

They know now that the money will be pouring in like mana from heaven.

#7 | Posted by donnerboy at 2017-12-20 04:08 PM | Reply

Getting better, pay raise and a bonus:

JUST IN: Fifth Third Bancorp announces plan "to raise its minimum hourly wage for all employees to $15, and distribute a one-time bonus of $1,000 for more than 13,500 employees" following passage of tax bill - CNBC

#8 | Posted by Gal_Tuesday at 2017-12-20 04:35 PM | Reply

For above: www.cnbc.com

They are feeling generous:

Fifth Third legal chief won't have to return bonus if she heads to FDIC

Fifth Third Bancorp has decided not to try to get its chief legal officer to return her $300,000 signing bonus if she departs to head the Federal Deposit Insurance Corp. as planned.

www.bizjournals.com

#9 | Posted by Gal_Tuesday at 2017-12-20 04:39 PM | Reply

Pretty sure that everyone on the DR Left said this would never happen.

#1 | POSTED BY RIGHTOCENTER

You have to be pretty stupid to fall for this PR stunt.

AT&T made $13 billion in profit last year. Why did they need a tax cut to pay employees more?

And do they get a the same pay raise every year since the tax cuts will continue going forward?

Man, there is a sucker born every minute and you are living proof.

#10 | Posted by Sycophant at 2017-12-20 04:40 PM | Reply | Funny: 1 | Newsworthy 2

Advertisement

Advertisement

Pretty sure that everyone on the DR Left said this would never happen.
#1 | POSTED BY RIGHTOCENTER

Give me a billion dollars and I'll give you 2 million. And we can call it a win for you, right?

#11 | Posted by Sycophant at 2017-12-20 04:48 PM | Reply | Funny: 1

AT&T is choosing to take advantage of the higher tax bracket that will lower next year, assuming this passes and takes effect when expected.

Our company CFO sent an email earlier today urging all of us to take a look at expenditures we can book this year instead of next so we can write it off in the higher bracket that will lower next year....and all because of this tax bill.

it's not generating economic activity for me....it's merely moving it up.

#12 | Posted by eberly at 2017-12-20 04:56 PM | Reply

Give me a billion dollars and I'll give you 2 million. And we can call it a win for you, right?

Except its $200 million and an additional billion in investment in the US.

Keep up the circle flapping, at the very least it will melt the fat off your upper arms.

#13 | Posted by Rightocenter at 2017-12-20 05:04 PM | Reply

Look at that, Wells Fargo announced it is boosting its minimum wage to $17/hr in part because of the tax cut.

#14 | Posted by Rightocenter at 2017-12-20 05:07 PM | Reply


A bonus is one-time only. I'd be more impressed if AT&T spent a portion of its tax-cut bonanza on a more permanent increase in wages, as Pres Trump said would happen.

Doing a one-time only bonus makes this action look more like PR spinning than actually passing an ongoing portion of the corporation's permanent tax cut on to workers.

#15 | Posted by LampLighter at 2017-12-20 05:09 PM | Reply | Newsworthy 3

Look at that, Wells Fargo announced it is boosting its minimum wage to $17/hr in part because of the tax cut.

#14 | POSTED BY RIGHTOCENTER

Okay, good.

Now how about Wells Fargo, and the rest of these unpatriotic douche-bags, move their stashed trillions in offshore tax havens back to America?

America first, remember?

#16 | Posted by PinchALoaf at 2017-12-20 05:17 PM | Reply


Kudos to Wells Fargo for doing the right thing and increasing entry-level wage from $13.50 to $17.00 for 25,000 employees, instead of giving out a one-time bonus.

We still have a lot of corporations to hear from. It will take a significant majority of those corporations to pass their permanent tax cut on to the workers in a meaningful manner to turn around the opinion on this tax bill. So far dozens have said they intend to pass the tax cut benefits on to shareholders, not their workers.

It really takes an effort to pass a tax cut bill that is liked by less than a third of the voters.

#17 | Posted by LampLighter at 2017-12-20 05:32 PM | Reply

#15 | POSTED BY LAMPLIGHTER --- I agree and considering that a lot of places are paid biweekly getting this one time bonus is equivalent to getting only $38.46 on each paycheck for one year. That isn't much, not even a tank of gas in most vehicles right now.

#18 | Posted by justagirl_idaho at 2017-12-20 05:36 PM | Reply

A bonus is one-time only. I'd be more impressed if AT&T spent a portion of its tax-cut bonanza on a more permanent increase in wages, as Pres Trump said would happen.
Doing a one-time only bonus makes this action look more like PR spinning than actually passing an ongoing portion of the corporation's permanent tax cut on to workers.

#15 | POSTED BY LAMPLIGHTER AT 2017-12-20 05:09 PM | FLAG: BITTER

*sips vermouth*

#19 | Posted by DixvilleNotch at 2017-12-20 05:46 PM | Reply

Now how about Wells Fargo, and the rest of these unpatriotic douche-bags, move their stashed trillions in offshore tax havens back to America?

That's what the repatriation provision is all about, it is at an admittedly lower tax rate but they should bring it back as it will be taxed at 8 or 15.5% whether it is brought back or not. From today's US News:

REPATRIATION: Sets a one-time mandatory tax of 8 percent on illiquid assets and 15.5 percent on cash and cash equivalents for about $2.6 trillion in U.S. business profits now held overseas. This foreign cash pile was created by a rule making foreign profits tax-deferred if they are not brought into the United States, or repatriated. That rule would be rendered obsolete by the territorial system.

This will raise between $208 and $309 Billion dollars on repatriation alone. These numbers were not included in the CBO or other estimates because they were not sure if it would be mandatory or elective. Since it came out of committee mandatory that will change the deficit picture by an undetermined amount.

#20 | Posted by Rightocenter at 2017-12-20 05:49 PM | Reply

Lamplighter,

AT&T may end up revamping their pay structure in lieu of standard dollar amount raises.

#21 | Posted by JeffJ at 2017-12-20 05:59 PM | Reply

"Kudos to Wells Fargo for doing the right thing and increasing entry-level wage from $13.50 to $17.00 for 25,000 employees, instead of giving out a one-time bonus."

It's not charity....it's a business decision. The business climate and the labor market compelled them to do it.

so don't wear yourself out patting them on the back.

It was a business decision.

#22 | Posted by eberly at 2017-12-20 06:12 PM | Reply

It was a business decision.

#22 | POSTED BY EBERLY

I cant help but feel like it was a long time coming and they decided they could do it now for the PR.

#23 | Posted by justagirl_idaho at 2017-12-20 06:13 PM | Reply | Newsworthy 7

Look at that, Wells Fargo announced it is boosting its minimum wage to $17/hr in part because of the tax cut.

#14 | Posted by Rightocenter

Let's see.. Wells Fargo gets a 18% boost in earnings and it's employees get less than a 3% boost in earnings.

In GOtP Fantasyland that is so awesome! But, I suppose it is better than a sharp stick in the eye. Especially since their health insurance premiums are now expected to go up 10%.

The bill will give the country's seven largest banks -- not including Goldman itself -- an average 14% increase in earnings, Goldman found. That's because of the plan's big cut in the corporate tax rate -- from 35% to 21%.

Wells Fargo (WFCPRJ) would make out the best, with an 18% boost, in large part because it derives nearly all of its profits from the United States, Goldman said. The company declined to comment for this story.

money.cnn.com

#24 | Posted by donnerboy at 2017-12-20 06:31 PM | Reply

@#21 ... AT&T may end up ...

AT&T may end up doing a lot of things. Or Not.

AT&T is notorious for not following through on their promises.

#25 | Posted by LampLighter at 2017-12-20 06:33 PM | Reply

Lamp,

My brother has worked for them for over 25 years. They've been good to him so I'm a bit biased.

#26 | Posted by JeffJ at 2017-12-20 06:36 PM | Reply

Donner

Perhaps all of their tax savings will result in expansion which results in job creation.

#27 | Posted by JeffJ at 2017-12-20 06:38 PM | Reply

Republican tax plan benefiting unions?

Say it aint so, Joe.

#28 | Posted by rstybeach11 at 2017-12-20 06:39 PM | Reply

Perhaps all of their tax savings will result in expansion which results in job creation.

Posted by JeffJ at 2017-12-20 06:38 PM | Reply

Kansas already proved you wrong.

#29 | Posted by LauraMohr at 2017-12-20 06:44 PM | Reply | Newsworthy 1

23

Yes. Very possible.

#30 | Posted by eberly at 2017-12-20 06:48 PM | Reply

#24

And right on cue, Downerboy comes in with incomplete information to advance his narrative.

What the MSM glosses over is that before this tax bill, the US had the highest corporate tax rate, by far, of the OECD countries. It also had the highest amount of foreign profits held overseas and the highest "corporate flight" of any OECD country due to its tax structure. With the new rates, we will be in the middle of the pack, between Canada and Italy on the higher side and Belgium (the former number 3) and the Netherlands on the lower side.

Because of this, Germany, Japan and Mexico (the new top three) are also looking at lowering corporate rates and France, (the former number 2) has a corporate tax reduction already in the works. This is not because they want to give handouts to the rich but because they need to compete in the global economy. These corporations, like it or not, will operate somewhere and tend to gravitate to the largest markets with the lowest tax burden. It's called good business.

For the information challenged, here is a handy bar graph that should explain it to you: The new landscape for corporate tax rates

#31 | Posted by Rightocenter at 2017-12-20 07:14 PM | Reply

Perhaps all of their tax savings will result in expansion which results in job creation.

#27 | Posted by JeffJ

Or perhaps more realistically the AT&T lobbyists had a deal with the Republicans that if they scratched AT&Ts back by eliminating Net Neutrality and tossing a few hundred billion taxpayer dollars their way they would throw Trump a bone.

#32 | Posted by donnerboy at 2017-12-20 07:14 PM | Reply

Right on cue ROC comes in with only half of the truth. What the ROC glosses over (and left off of his quote from www.npr.org is that before this tax bill, the effective tax rate was 18.6%.

Because the 38.9% rate is not the rate that many companies in the U.S. end up paying. Deductions and credits help push down businesses' total tax liability, meaning that many companies end up paying far less than the statutory rate.

#33 | Posted by donnerboy at 2017-12-20 07:20 PM | Reply | Newsworthy 2

Because the 38.9% rate is not the rate that many companies in the U.S. end up paying. Deductions and credits help push down businesses' total tax liability, meaning that many companies end up paying far less than the statutory rate.

True everywhere in the world, in GB for example, they have a starting rate of around 20% and an effective rate of about 11%. Germany has a 30% starting rate and an effective rate of a little over 15%. This just evens the playing field.

Here's a hint...it's not a coincidence that the new mandatory tax on all overseas assets comes in between 8 and 15.5%, since somewhere in that range is where US based corporations will be paying on their new effective tax rates.

The US doesn't have a monopoly on tax lawyers who figure these things out, it happens worldwide.

#34 | Posted by Rightocenter at 2017-12-20 07:36 PM | Reply

That's what the repatriation provision is all about, it is at an admittedly lower tax rate but they should bring it back as it will be taxed at 8 or 15.5% whether it is brought back or not. From today's US News:

REPATRIATION: Sets a one-time mandatory tax of 8 percent on illiquid assets and 15.5 percent on cash and cash equivalents for about $2.6 trillion in U.S. business profits now held overseas. This foreign cash pile was created by a rule making foreign profits tax-deferred if they are not brought into the United States, or repatriated. That rule would be rendered obsolete by the territorial system.

This will raise between $208 and $309 Billion dollars on repatriation alone. These numbers were not included in the CBO or other estimates because they were not sure if it would be mandatory or elective. Since it came out of committee mandatory that will change the deficit picture by an undetermined amount.

#20 | POSTED BY RIGHTOCENTER

The details you're spouting means little when it's understood that all this can be easily crafted to benefit any favored special interest by whoever controls the levers of government.

#35 | Posted by PinchALoaf at 2017-12-20 07:49 PM | Reply

The US doesn't have a monopoly on tax lawyers who figure these things out, it happens worldwide.

#34 | POSTED BY RIGHTOCENTER

Except that the world is stuck dancing to the tune of unique American-style corruption.

Case in point -- the 2008 financial meltdown caused by the crooks on Wall Street.

#36 | Posted by PinchALoaf at 2017-12-20 07:54 PM | Reply

AT&T: "We're giving hundreds of thousands of our employees a surprise bonus and investing $1B into US operations."

Liberals: "We hate that!"

#37 | Posted by GOnoles92 at 2017-12-20 08:15 PM | Reply | Newsworthy 3

AT&T: "We're giving hundreds of thousands of our employees a surprise bonus and investing $1B into US operations."

Liberals: "We hate that!"

#37 | POSTED BY GONOLES92

You're a corporate Quisling.

#38 | Posted by PinchALoaf at 2017-12-20 08:23 PM | Reply


@#26 ... My brother has worked for them for over 25 years. They've been good to him so I'm a bit biased. ...

I was speaking about the $1 billion capital pending part when I said AT&T notoriously doesn't keep promises.

I've read of too many examples where AT&T had promised to expand a service or invest in an area, and may even have gotten government money to do so, but didn't.

On the other hand, the one-time bonuses are good, I would have just preferred to see a wage increase, as that is what Pres Trump said would happen.

#39 | Posted by LampLighter at 2017-12-20 09:10 PM | Reply

Case in point -- the 2008 financial meltdown caused by the crooks on Wall Street.

#36 | POSTED BY PINCHALOAF

The federal government was every bit as big a player when it came to the criminality that lead to the 2008 meltdown, arguably moreso. That's the primary reason why nobody was indicted over it.

#40 | Posted by JeffJ at 2017-12-20 09:17 PM | Reply | Newsworthy 1

On the other hand, the one-time bonuses are good, I would have just preferred to see a wage increase, as that is what Pres Trump said would happen.

#39 | POSTED BY LAMPLIGHTER

My brother got an email today regarding the bonus. If they end up changing (for the better) their tier-structure I will post a thread.

#41 | Posted by JeffJ at 2017-12-20 09:18 PM | Reply

The federal government was every bit as big a player when it came to the criminality that lead to the 2008 meltdown, arguably moreso. That's the primary reason why nobody was indicted over it.

#40 | POSTED BY JEFFJ

Because of our unique American-style corruption.

Iceland has the right idea ...

Iceland Sentences 29th Banker To Prison, US Bankers Still Collecting Bonuses

www.mintpressnews.com

REYKJAVIK, Iceland -- While the world economy struggles to recover from the 2008 financial crisis, most of the bankers who caused the collapse are still collecting massive salaries and have faced few, if any, consequences.

Except in Iceland.

In one of the countries hit hardest by the collapse, 29 bankers have now been sentenced to prison for their roles in the crash.

According to, Stefan Simanowitz, writing for The Huffington Post on Jan. 5, "Just before Christmas, the former CEO of Iceland's Glitnir bank and two other senior bankers were sentenced to jail terms of up to five years for market manipulation and breach of fiduciary duties."


We spend all our time arguing over stupidity like the national anthem and kneeling NFL players, that we forget that the crooks on Wall Street got away with their stealing and wrecking the economy.

#42 | Posted by PinchALoaf at 2017-12-20 09:35 PM | Reply

Loaf,

The fundamental difference is had that been attempted here, stalwarts like Barney Frank (D) and Kit Bond (R) would be sitting along side the likes of Anthony Mozilo in prison. If Mozilo goes so do some influential politicians from both parties. So. Nobody went.

#43 | Posted by JeffJ at 2017-12-20 09:44 PM | Reply

"The federal government was every bit as big a player when it came to the criminality that lead to the 2008 meltdown, arguably moreso"

The Federal government didn't do anything criminal whatsoever.

#44 | Posted by snoofy at 2017-12-20 10:08 PM | Reply

"The federal government was every bit as big a player when it came to the criminality that lead to the 2008 meltdown, arguably moreso"
The Federal government didn't do anything criminal whatsoever.

#44 | POSTED BY SNOOFY

Correct. They changed the rules to such a degree that what used to be illegal was all of a sudden legal and Wall Street responded. From any angle, the big-wigs on Wall Street would be sitting next to the big-wigs on Washington had this moved toward indictments. That was never going to happen.

#45 | Posted by JeffJ at 2017-12-20 10:37 PM | Reply

Look at that, Wells Fargo announced it is boosting its minimum wage to $17/hr in part because of the tax cut.

#14 | POSTED BY RIGHTOCENTER AT 2017-12-20 05:07 PM | REPLY | FLAG:

Show me where you got this news or admit you are lying.

#46 | Posted by BruceBanner at 2017-12-20 10:51 PM | Reply

What you gentlemen are celebrating is corruption and robbery of the American tax payer. This is not investing in the economy. It is currying favor with a corrupt political class to get economic favors.

It's the destruction of the American economy. Destruction of capitolism.

We're suddenly on the African continent politically speaking.

#47 | Posted by BruceBanner at 2017-12-20 10:54 PM | Reply

The companies that publicly celebrated the tax bill are all regulated by and do business with the federal government, so a little cheerleading couldn't hurt. AT&T in particular could use some positive vibes from the Trump administration, whose Justice Department is suing to block the phone carrier's $85.4 billion acquisition of Time Warner Inc.

-Bloomberg and npr reports

#48 | Posted by BruceBanner at 2017-12-20 10:56 PM | Reply

Chuck Schumer, the New York Democrat and Senate minority leader, cited the pending merger in a statement about AT&T's bonus. And he said the payout to workers is the exception to the rule, with other big corporations focusing on share buybacks in anticipation of the tax reform.

"There is a reason so few executives have said the tax bill will lead to more jobs, investments, and higher wages -- because it will actually lead to share buybacks, corporate bonuses, and dividends," Schumer said in a statement.

-Bloomberg

#49 | Posted by BruceBanner at 2017-12-20 10:56 PM | Reply

AT&T may end up revamping their pay structure in lieu of standard dollar amount raises.

#21 | POSTED BY JEFFJ AT 2017-12-20 05:59 PM | REPLY | FLAG:

Partisan game continues.

On anything progressive is impossible to know.

On anything conservative it's definitely going to play out according to the conservative theology instead of the historical data showing it hasn't the past 10,000 times.

#50 | Posted by BruceBanner at 2017-12-20 10:59 PM | Reply

"AT&T may end up revamping their pay structure in lieu of standard dollar amount raises."

Great PR move, you have to admit.

The workers get less pennies over the long run, while the company looks benevolent.

#51 | Posted by Danforth at 2017-12-20 11:05 PM | Reply

"Look at that, Wells Fargo announced it is boosting its minimum wage to $17/hr in part because of the tax cut.

First, WF announced the boost in January 2017.

Second, the MW they announced will be in the range of $13.50 to $17.

And again, not because of the tax cut, since the announcement predated the tax cut by 11 months.

#52 | Posted by Danforth at 2017-12-20 11:10 PM | Reply | Newsworthy 1

"Kudos to Wells Fargo for doing the right thing and increasing entry-level wage from $13.50 to $17.00 for 25,000 employees, instead of giving out a one-time bonus."

Danforth is right, and here's the link to prove it:

Wells Fargo is giving 25,000 tellers and other entry level workers a raise at a time when the bank is struggling to overcome a morale problem caused by the fake account fiasco.

Wells Fargo (WFC)said the pay hike to a minimum of $13.50 an hour is aimed at attracting and retaining talent, not a response to the scandal.

The increase from $12 an hour takes effect January 8 and follows similar moves by other major banks, including Bank of America (BAC), amid the improving jobs market. The Wells Fargo news was first reported by the Charlotte Observer.

Wells Fargo confirmed the change initially impacts roughly 25,000 mostly entry level employees, including tellers, phone bankers and customer service representatives.

The new minimum salary range is $13.50 to $17.00. Wells Fargo previously raised its entry pay to a range of $12 to $16 an hour in March [2016].

money.cnn.com

#53 | Posted by Gal_Tuesday at 2017-12-20 11:24 PM | Reply | Newsworthy 1

This is the same false PR BS Trump tried to pull when he first became president and started taking credit for creating jobs that had in fact been contracted for/promised under Obama. Plus ca change plus c'est la meme chose.

#54 | Posted by Gal_Tuesday at 2017-12-20 11:27 PM | Reply

"They changed the rules to such a degree that what used to be illegal was all of a sudden legal and Wall Street responded. "

They changed the rules because outside money is not only allowed in politics, and it's required to run a campaign for the House, Senate, or White House.

You say money in politics can't be banned. Wall Street "responded" all right.

That's the reason. Not democrats. Not government. An interpretation of the First Amendment that puts elections up to auction to the highest bidder.

#55 | Posted by snoofy at 2017-12-20 11:28 PM | Reply

The reports I have seen are $15 an hour.

#56 | Posted by BruceBanner at 2017-12-20 11:45 PM | Reply

Gal Tues' link reminds us Wells Fargo did this just after endless scandals were bringing the pain to them.

#57 | Posted by BruceBanner at 2017-12-20 11:47 PM | Reply | Newsworthy 1

Donnie isn't exactly good at keeping his economic promises, but he's excellent at lying about keeping them:

Donald Trump Has Only Delivered 1,200 Coal-Mining Jobs, Despite Claiming to Have Created 45,000

President Donald Trump spent much of his campaign promising to bring back coal, an industry that he said then-President Barack Obama had demoralized with too many regulations. So in July when Trump declared at a rally that he had created 45,000 coal jobs since the start of his presidency, many coal miners rejoiced.

"Everybody was saying, 'Well, you won't get any mining jobs,' we picked up 45,000 mining jobs. Well, the miners are very happy with Trump and with Pence, and we're very proud of that," Trump said to an excited audience.

The only problem seems to be that number was nowhere close to true. In fact, since the beginning of Trump's presidency, just 1,200 coal-mining jobs have been created, according to monthly reports by the Bureau of Labor Statistics. In fact, the 1,200 coal jobs during Trump's presidency thus far are just 100 more than were created between August and December 2016 under President Obama.

www.newsweek.com

#58 | Posted by Gal_Tuesday at 2017-12-20 11:53 PM | Reply

I'm just so confused about why this is reported as a GOP win.

It's complete fubar.

Not at all what they promised.

The media is scared of Trump.

#59 | Posted by BruceBanner at 2017-12-21 12:03 AM | Reply

BRUCE

"I'm just so confused about why this is reported as a GOP win."

Because this one lone example of corporate largess will be used as "proof-positive" that vindicates Trump's give-away to corporations.

One example is all they need to make it "appear" that Trump was right.

#60 | Posted by Twinpac at 2017-12-21 01:16 AM | Reply | Newsworthy 1

...it's a religion, Twinpac, a cult.

#61 | Posted by ichiro at 2017-12-21 06:46 AM | Reply

They're paying a one time bonus of $1,000 to 200,000 employees for a total of $2,000,000 while the company saves $1,000,000,000 in taxes. I thought dotard said everyone was getting a $4,000 raise.

#62 | Posted by 726 at 2017-12-21 08:12 AM | Reply | Newsworthy 1

#62, should be $200,000,000 not $2,000,000.

#63 | Posted by 726 at 2017-12-21 08:13 AM | Reply

Let's do the math, shall we?

What is the average salary of an ATT worker?

What percentage is $1000 of their salary?

If that is paid as a bonus, instead of a salary increase, does that fall in the workers' favor, or the company's favor in the long term?

#64 | Posted by Danforth at 2017-12-21 10:18 AM | Reply

ATT just doled out $200 million to its employees according to my brother. In addition, in the email that was sent out the CEO said ATT will be investing a lot more into US resources, after a lot of moving work offshore the past few years.

#65 | Posted by JeffJ at 2017-12-21 10:23 AM | Reply

God bless our beloved President Donald Trump and the Republicans. Merry Christmas!

#66 | Posted by visitor_ at 2017-12-21 10:28 AM | Reply

64

where are you going with that?

#67 | Posted by eberly at 2017-12-21 10:33 AM | Reply

"Look at that, Wells Fargo announced it is boosting its minimum wage to $17/hr in part because of the tax cut."

1. It's simply not true.
2. When you steal the money from depositors it costs you nothing.

#68 | Posted by danni at 2017-12-21 10:37 AM | Reply | Newsworthy 1

68

what? I agree the tax cut is a convenient excuse for something they may have done anyway but what is this "steal the money from depositors" thing??

do tell!!!

#69 | Posted by eberly at 2017-12-21 10:39 AM | Reply

"what? I agree the tax cut is a convenient excuse for something they may have done anyway but what is this "steal the money from depositors" thing??"

You're not aware of the huge scandals that hae occurred at Wells Fargo where they opened credit card accounts for millions of their customers without those customer's knowledge and then charged them all sorts of fees thereby stealing millions in profits? The Consumer Protection agency fined them millions for it and then it happened again.

"Wells Fargo victims get closer to payback in $142 million settlement"

money.cnn.com

#70 | Posted by danni at 2017-12-21 10:51 AM | Reply | Newsworthy 1

70

Thank you...forgot about that.

#71 | Posted by eberly at 2017-12-21 10:56 AM | Reply

"where are you going with that?"

For a $50K worker, a thousand bucks is 2%. If the bonus is in lieu of a pay raise, the company is better off every year going forward, because any percentage raise will be based on the current number, and not a number 2% higher to start.

It's a great technique to keep long-term costs down: give bonuses instead of pay raises.

IOW if they gave 2% raises instead, and--assuming no other changes to the equation--next year wanted to give a bonus of 2%, it would cost MORE than $1000/worker. $1020, to be exact. Then $1040, $1061, $1082, and by the 5th year, a 2% bonus on those 2% annual raises would be over $1100/person.

#72 | Posted by Danforth at 2017-12-21 11:04 AM | Reply | Newsworthy 1

#72 | POSTED BY DANFORTH

My brother is very happy to be receiving a $1000 bonus as a result of this tax bill being signed into law.

It's amazing to me that this bonus is being made out to be a bad thing.

#73 | Posted by JeffJ at 2017-12-21 11:06 AM | Reply | Funny: 1

"My brother is very happy to be receiving a $1000 bonus as a result of this tax bill being signed into law. "

Is it in lieu of a raise, or in addition to a raise?

"It's amazing to me that this bonus is being made out to be a bad thing."

Only if it's the former. And it's not me...it's math.

#74 | Posted by Danforth at 2017-12-21 11:59 AM | Reply

Is it in lieu of a raise, or in addition to a raise?

It's not replacing the raise he receives every year with his performance review.

#75 | Posted by JeffJ at 2017-12-21 12:03 PM | Reply

ATT didn't state that instead of annual performance review raises they are going to give $1000 bonuses.

Again, not sure why an unscheduled bonus is a bad thing.

#76 | Posted by JeffJ at 2017-12-21 12:05 PM | Reply | Newsworthy 1

"It's not replacing the raise he receives every year with his performance review."

But will raises tend to be less than they would've been without the bonus?

Again, these are compound, long-term equations, and a small tweak affects every following year.

"Again, not sure why an unscheduled bonus is a bad thing."

Again, math. IF it is in lieu of what would otherwise be a raise. Clear enough?

#77 | Posted by Danforth at 2017-12-21 12:09 PM | Reply

Again, math. IF it is in lieu of what would otherwise be a raise. Clear enough?

#77 | POSTED BY DANFORTH

Yep. You're addressing a hypothetical.

But will raises tend to be less than they would've been without the bonus?

Based on the language of the message from the CEO, no.

#78 | Posted by JeffJ at 2017-12-21 12:16 PM | Reply

So, if nothing changes in how raises are administered, this bonus is a good thing. Yes?

#79 | Posted by JeffJ at 2017-12-21 12:17 PM | Reply

"Based on the language of the message from the CEO, no."

Oh please.

Based on reality. Keep us updated.

#80 | Posted by Danforth at 2017-12-21 12:18 PM | Reply

"So, if nothing changes in how raises are administered, this bonus is a good thing. Yes?"

Sure. But not AS GOOD as an additional equivalent percentage raise, in the long term.

#81 | Posted by Danforth at 2017-12-21 12:19 PM | Reply

"So, if nothing changes in how raises are administered, this bonus is a good thing. Yes?" -- #79 | POSTED BY JEFFJ

Yes, it is nice to have an additional $1000 unexpectedly given to you by your employer. They will automatically deduct 25% of it for federal taxes and likely the rest will be spent quickly getting shiny new Christmas gifts. However, in the grand scheme of things, No it really isnt that good. It is a paltry sum and done for the wrong reasons. It makes a few employees feel good but doesnt actually change anything about their income going forward. AT&T will have a permanent tax break, and some employees end up with about $750 one time.

#82 | Posted by justagirl_idaho at 2017-12-21 12:27 PM | Reply

Bruce, the $17 was a typo, but they are going to $15, and there are plenty of articles that talk about that and the $400M they are going to donate to charitable organizations. Google it.

Dan, keep trying to twist any good news into a pretzel, it just makes you look desperate to keep your narrative alive. Let's see how this fits into your confirmation bias:

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

A handful of U.S. companies are already promising to pay one-time bonuses to their employees and bump up hourly pay if President Trump signs into law the tax reform bill that has been voted on by the Republican-led Congress.

AT&T was the first company to go public with its plans to pass along coming tax savings to workers, saying once the tax bill is passed it would pay a special $1,000 bonus to more than 200,000 of its non-management workers.

Comcast announced Wednesday that it would award one-time $1,000 bonuses to more than 100,000 employees, which would include frontline and non-executive employees. Comcast said it also expects to spend more than $50 billion over the next five years investing in infrastructure to improve and extend broadband plant and capacity, and its television, film and theme park offerings.

Fifth Third Bancorp, a regional bank based in Cincinnati, said it will raise the minimum wage for all of its nearly 3,000 hourly employees to $15, and would distribute a one-time bonus of $1,000 for more than 13,500 employees by the end of the year if the bill is signed by Dec. 25.

Wells Fargo said it would boost its minimum wage to $15 per hour, an 11% increase from its current hourly rate of $13.50, once the law was passed.

Aerospace giant Boeing said it would move forward with $300 million in investments as a result of the new tax law, including $100 million in employee training and education and $100 million to enhance Boeing facilities as part of its "workforce of the future" initiative.

Go ahead and scream and flap that it is just PR or what about 2027 but as Jeff notes, their workers will be happy with the extra cash regardless of your teeth gnashing.

AT&T, Boeing, Comcast, Wells Fargo promise bonuses or pay hikes once tax cut bill passes

#83 | Posted by Rightocenter at 2017-12-21 12:37 PM | Reply

"Dan, keep trying to twist any good news into a pretzel, it just makes you look desperate to keep your narrative alive."

Look, ROC, if you don't understand the math, it's not my fault. A bonus is great for the worker. Using the exact same money to raise the base pay is better for the worker. If you don't get that macro concept, I can't help you.

#84 | Posted by Danforth at 2017-12-21 12:43 PM | Reply

#84

I don't disagree, and the companies that are announcing pay raises are doing more for their employees. For hourly employees, an extra $1000 is huge but you are acting like these companies are taking a dump in their Christmas stockings when the opposite is true.

#85 | Posted by Rightocenter at 2017-12-21 12:48 PM | Reply

The point is, the tax bill isn't even signed yet but any news from Corporations that are giving extra bonus money to their employees is met by the DR Left with a resounding "Bah Humbug."

I am pretty sure that none of those employees will agree with you that an extra $1000 and in some cases, a raise to the $15 minimum wage target of the progressives is a bad thing.

#86 | Posted by Rightocenter at 2017-12-21 12:51 PM | Reply

" is met by the DR Left with a resounding "Bah Humbug.""

I get it: the math goes over your head. No need to reinforce by inventing a strawman.

"I am pretty sure that none of those employees will agree with you that an extra $1000 and in some cases, a raise to the $15 minimum wage target of the progressives is a bad thing."

And I'm VERY sure if these bonuses are being given out in lieu of what would have otherwise been raises in base pay, the management doesn't think it's a bad thing, either. And if MATH picks a side, it's management's...I'm sure.

#87 | Posted by Danforth at 2017-12-21 01:02 PM | Reply

Danforth

The math hasn't gone over anyone's head. The problem is you seem absolutely convinced this bonus is in lieu of a raise yet you have nothing tangible to base that on.

#88 | Posted by JeffJ at 2017-12-21 01:16 PM | Reply | Newsworthy 1

"The problem is you seem absolutely convinced this bonus is in lieu of a raise yet you have nothing tangible to base that on."

No, I'm convinced this would be better for the workers in the long run if THE EXACT SAME MONEY was used for a raise instead. And I'm basing that conclusion on compound math.

If my workforce all make $50K, and I give a 2% bonus but no raises, my 2% bonus in 5 years is $1000/worker.

If I give 2% raises for 5 years, and then give a 2% bonus, that bonus is $1100.

TANGIBLE.

#89 | Posted by Danforth at 2017-12-21 02:14 PM | Reply

I've served over two decades on finance committees where we discussed this stuff yearly. It's just math. Tangible, real, non-Republican, math.

In the toughest of years, we'd give out bonuses in lieu of raises, or larger raises, specifically to hold down the baseline going forward, since raises are often a percentage of the current amounts.

#90 | Posted by Danforth at 2017-12-21 02:17 PM | Reply

Dan, Jeff's point is that there is no evidence, anywhere, that these bonuses are in lieu of raises, you are making that assumption because it supports your narrative.

If these companies don't give raises next year, get back to us. For now, this is nothing but a good thing for these employees.

#91 | Posted by Rightocenter at 2017-12-21 02:28 PM | Reply

The evidence is that it is standard practice among many corporations... even if that fact doesn't fit your narrative.

#92 | Posted by Corky at 2017-12-21 02:29 PM | Reply

The evidence is that it is standard practice among many corporations... even if that fact doesn't fit your narrative.

#92 | POSTED BY CORKY

Bonuses in lieu of raises? "Many corporations"? Can you source your claim?

#93 | Posted by JeffJ at 2017-12-21 02:32 PM | Reply | Newsworthy 1

No, I'm convinced this would be better for the workers in the long run if THE EXACT SAME MONEY was used for a raise instead. And I'm basing that conclusion on compound math.

I understand compound math. But, you seem like you think these bonuses are a bad thing even if they are in addition to annual raises as opposed to in lieu of them.

#94 | Posted by JeffJ at 2017-12-21 02:34 PM | Reply

#93

Easily. 5 seconds, tops.

"Most employers aren't handing out less money than in the past, they're just doing it differently. While overall wages are stuck in neutral or reverse, incentive pay is speeding ahead. Almost all (91%) of the 1,064 companies in Aon Hewitt's most recent compensation survey now offer bonus programs for salaried employees, partly as a way of attracting the hires they want."

fortune.com

#95 | Posted by Corky at 2017-12-21 02:36 PM | Reply

"...there is no evidence, anywhere, that these bonuses are in lieu of raises..." - #91 | Posted by Rightocenter at 2017-12-21 02:28 PM

Is there evidence, anywhere, that those bonuses are in addition to raises?

#96 | Posted by Hans at 2017-12-21 03:02 PM | Reply

Is there evidence, anywhere, that those bonuses are in addition to raises?

#96 | POSTED BY HANS

Good point. The entire discussion is speculative.

#97 | Posted by JeffJ at 2017-12-21 03:03 PM | Reply

#95

To paraphrase James Carville, "it's the Economy, stupid,", wage growth in 2015 was non-existent so of course companies were using bonuses as a hiring incentive.

By ANNE FISHER July 15, 2015

Although it's well-known by now that wage growth hasn't kept up with productivity gains in recent years, the trend in base pay is even worse than most people realize. In the second quarter of 2015, unlike the one before it, average inflation-adjusted wages in the U.S. actually fell 0.5%. The average 12-month increase was only a barely perceptible 0.3%.

That's according to the latest quarterly report from compensation data site PayScale, which measured what people earned across 15 U.S. industries. The rest of this year isn't looking much better. PayScale predicts that wage growth will be a measly 0.2% for the third quarter, and just 0.4% for the year."

Ready for some good news? If you want to earn substantially more money [in 2015], you probably can. Most employers aren't handing out less money than in the past, they're just doing it differently. While overall wages are stuck in neutral or reverse, incentive pay is speeding ahead. Almost all (91%) of the 1,064 companies in Aon Hewitt's most recent compensation survey now offer bonus programs for salaried employees, partly as a way of attracting the hires they want.

Contrast that to 2016-17, when the largest growth in average inflation-adjusted wages in the seven years took place, while bonuses stayed the same.
Wage Growth Surged to a Seven-Year High in 2016

In a tight labor market, both wages and bonuses go up, which is what we are seeing in the second half of 2017. Moreover, In 2017, the bottom quintile has seen the largest yearly growth in average inflation-adjusted wages in the last decade while the top quintile has actually declined.

#98 | Posted by Rightocenter at 2017-12-21 03:40 PM | Reply

nationalize/restrict these bastards or raise, not lower, their taxes. we've been through this before and didn't permanently fix it, which should be more than obvious by now.

#99 | Posted by ichiro at 2017-12-21 03:44 PM | Reply

nationalize/restrict these bastards or raise, not lower, their taxes.

That worked so well in Venezuela...

#100 | Posted by Rightocenter at 2017-12-21 04:08 PM | Reply

AT&T said that this will be for union employees. The unions have pay raises set in the contract so this won't affect if they get a raise or not. And with this being for union employees it is easier for AT&T to just give them a bonus than have to rework the contact to include the new raise.
This bonus is a good deal for the employees because the options are between a bonus or nothing, not a bonus or raise.

Here is an old contract as an example. (the pay charts start in appendix A)
www.cwa6143.org

#101 | Posted by als6571 at 2017-12-21 04:22 PM | Reply

The layoffs will more than pay for this.

abcnews.go.com

https://www.google.com/amp/s/nypost.com/2017/12/18/att-lays-off-directv-workers-despite-pledge-to- create-jobs/amp/

#102 | Posted by DirkStruan at 2017-12-21 04:30 PM | Reply

"you seem like you think these bonuses are a bad thing even if they are in addition to annual raises as opposed to in lieu of them."

For the last firkin' time, all I've said is, IN THE BIG EQUATION, a raise is better than a bonus. If you disagree, take it up with math.

#103 | Posted by Danforth at 2017-12-21 10:28 PM | Reply

"the options are between a bonus or nothing"

Nonsense. Nothing stops ATT from requesting one change in the Union contract, a change the Unions would leap at in a nanosecond.

Pretending ATT is somehow handcuffed from offering a raise in the current contract is just that: pretending.

#104 | Posted by Danforth at 2017-12-21 10:32 PM | Reply

"Moreover, In 2017, the bottom quintile has seen the largest yearly growth in average inflation-adjusted wages in the last decade"

And all they had to endure for that was 9+ years of -------- yearly growth.

#105 | Posted by Danforth at 2017-12-21 10:34 PM | Reply

"It was remarkable there were so many months in a row that there were employment gains that were registered, yet there was no sign at all in the wage numbers," Burtless said."

It's called "regression to the mean."

#106 | Posted by snoofy at 2017-12-21 10:42 PM | Reply

For the last firkin' time, all I've said is, IN THE BIG EQUATION, a raise is better than a bonus. If you disagree, take it up with math.

#103 | POSTED BY DANFORTH

Okay then. :-)

Tonight will probably be my last foray on this site for a few days.

Given that, Merry Christmas to you and yours. I always make a point of reading your posts and really appreciate what you bring to this site. Happy holidays to you - I have a couple of other battles to wage before I depart so I'm going to leave our discussion at its logical conclusion which is your post that I just reproduced.

#107 | Posted by JeffJ at 2017-12-21 10:55 PM | Reply

Merry and Happy to you and yours as well, Jeff.

Until next time.

#108 | Posted by Danforth at 2017-12-21 11:08 PM | Reply

This thread reads like a Harry Potter versus a multi-poster Voldemort wizard battle! Merry Christmas, you economic nerds.

#109 | Posted by redlightrobot at 2017-12-22 05:08 PM | Reply

Gee, ROC and JeffJ, did you get the news?

ATT gave bonuses, despite the fact the workers wanted raises.

Who would have guessed it?

#110 | Posted by Danforth at 2017-12-23 01:47 AM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2018 World Readable

Drudge Retort