Economics
Credit the U.S. Economy, Not Just Tax Cuts, for Wage Hike Promises
- From Wells Fargo to AT&T, companies promise tax-tied benefits
- Raises and bonuses were already in train in tight labor market
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A spate of companies have promised employee bonuses and wage hikes following the passage of U.S. tax reform. Those gestures owe to economic calculus, not just policy change.
Wells Fargo & Co., Fifth Third Bancorp and AT&T Inc. are among corporations that rushed out pledges for pay perks after the passage of the Republican tax plan on Wednesday. The legislation will slash tax rates for corporations and on repatriated offshore earnings, which its supporters say could unlock funds for business investment.