AT&T to invest $1 billion in capital spending following tax reform passage 26 Mins Ago | 03:21
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."
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.
The House of Representatives on Wednesday sent tax reform legislation to President Donald Trump, who is expected to sign it soon. Trump lauded the bill, calling it "an extraordinary victory for American families, workers, and businesses."
In Wednesday's announcement, AT&T noted its track record of creating U.S. jobs. The announcement comes a month after the Justice Department challenged AT&T's pending merger with Time Warner. Trump has said the deal is "not good for the country" because it might make prices increase.
On the other hand, AT&T stands to be a potential beneficiary of another recent move by the Trump administration: the repeal of net neutrality regulation. The new regulatory landscape will afford AT&T more flexibility to control the pricing and speed of content for their internet customers, although AT&T has said it will not make big changes to the way internet services are delivered.
Stephenson is a longtime Republican donor, contributing to candidates, political action committees and the party for at least the last two decades. In 2016, he donated to candidates including Speaker of the House Paul Ryan and Arizona Senator John McCain. In June of this year, he donated to Trump, presumably for his reelection campaign, and sent almost $34,000 to the Republican National Committee, according to the Center for Responsive Politics.
As of the third quarter, AT&T had spent about $16.5 billion in capital expenditures in 2017. Earlier this year, thousands of AT&T workers, members of the Communications Workers of America union, went on strike over issues like job security and outsourcing. Many AT&T workers already expected to receive 10 percent raises as a result of an agreement announced last week.
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."
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.
The House of Representatives on Wednesday sent tax reform legislation to President Donald Trump, who is expected to sign it soon. Trump lauded the bill, calling it "an extraordinary victory for American families, workers, and businesses."
In Wednesday's announcement, AT&T noted its track record of creating U.S. jobs. The announcement comes a month after the Justice Department challenged AT&T's pending merger with Time Warner. Trump has said the deal is "not good for the country" because it might make prices increase.
On the other hand, AT&T stands to be a potential beneficiary of another recent move by the Trump administration: the repeal of net neutrality regulation. The new regulatory landscape will afford AT&T more flexibility to control the pricing and speed of content for their internet customers, although AT&T has said it will not make big changes to the way internet services are delivered.
Stephenson is a longtime Republican donor, contributing to candidates, political action committees and the party for at least the last two decades. In 2016, he donated to candidates including Speaker of the House Paul Ryan and Arizona Senator John McCain. In June of this year, he donated to Trump, presumably for his reelection campaign, and sent almost $34,000 to the Republican National Committee, according to the Center for Responsive Politics.
As of the third quarter, AT&T had spent about $16.5 billion in capital expenditures in 2017. Earlier this year, thousands of AT&T workers, members of the Communications Workers of America union, went on strike over issues like job security and outsourcing. Many AT&T workers already expected to receive 10 percent raises as a result of an agreement announced last week.
