Home Depot joins a long list of businesses which have announced wage raises and bonuses to their employees amid the new tax reform legislation.
In an announcement on Thursday, Home Depot said they would be giving each hourly employee $200, with some longer-term employees receiving up to $1,000.
🛠️ Home Depot announced bonuses for all hourly employees, citing tax reform. https://t.co/vLzrWVIHNT
— Ways and Means (@WaysandMeansGOP) January 25, 2018
Home Depot is awarding its hourly employees in the U.S. a one-time cash bonus of as much as $1,000 following the passage of new tax legislation.
“This incremental investment in our associates was made possible by the new tax reform bill,” Chief Executive Officer Craig Menear said in prepared remarks. “We are pleased to be able to provide this additional reward to our associates.”
The list of companies giving bonuses and raising wages for hardworking Americans continues to grow! This morning, @HomeDepot announced plans to award hourly employees a cash bonus up to $1,000 as a result of GOP tax cuts. -> https://t.co/xcDXeCZ9hM
— Senator Ted Cruz (@SenTedCruz) January 25, 2018
The home improvement retailer said the new tax law will result in added tax expenses of about $150 million in the fourth quarter, which are tied to taxes on offshore earnings. These expenses and the bonus payments will lower Home Depot’s fiscal 2017 earnings by 19 cents a share, the company said.
For fiscal 2018, Home Depot is still evaluating the legislation’s impact on its business, but said it should be “beneficial.”
But but but I though the tax reform was only for the elites!!!
— Nathan Ciurzynski (@NCiurzynski) January 25, 2018
I’m sure the $200 (pre tax) boost most people will be getting will certainly improve their life situation in a measurable way.
— jk (@okayJosh_) January 25, 2018
If your kid needs shoes $200 is a lot. Don’t be an elitist and think people don’t need help
— GT (@its_GTdawg) January 25, 2018
And, per Fox News:
The company is joining JPMorgan, Verizon, Disney and others in adding to employee compensation after President Trump signed a sweeping tax-reform bill into law last December.
The Home Depot bonus will be paid in addition to retailer’s existing bonuses. It employs more than 400,000 associates.
— FOX Business (@FoxBusiness) January 25, 2018
On Wednesday, Starbucks also announced wage raises and extended paid leave to their employees. They join Disney and JPMorgan Chase & Company this week in announcing similar bonuses.
Per Associated Press:
Starbucks is giving its U.S. workers pay raises and stock grants this year, citing recent changes to the tax law.
All employees will soon be able to earn paid sick time off, and the company’s parental leave benefits will include all non-birth parents. Starbucks Corp. said Wednesday that the changes affect about 150,000 full-time, part-time, hourly and salaried employees, most of whom work as baristas or shop managers. The new benefits apply to workers at more than 8,200 company-owned stores but not at the 5,700 licensed shops like those found inside supermarkets.
Starbucks is the latest to say it’s boosting pay or benefits due to the passage of the Republican tax plan, which slashed the corporate tax rate from 35 percent to 21 percent.
Every day, companies large and small are announcing new employee bonuses and more investment into the economy thanks to the #TaxCutsandJobsAct. Just this week, we’ve seen Starbucks, Disney, and J.P. Morgan Chase join in.https://t.co/Lv8qmpYS2K
— House Republicans (@HouseGOP) January 24, 2018