Comcast and AT&T announce fresh investment plan

With tax cuts, US companies planning worker bonuses

Wells Fargo, AT&T, Boeing try to show US tax cut aids workers

The legislation, which is now on the move to the President's desk to be signed into law, represents the largest one-time tax reduction in USA history, cutting an estimated $1.46 trillion in overall tax collections by the government.

In addition to these companies, Cincinnati-based Fifth Third Bancorp said it will pay a $1,000 bonus to more than 13,500 employees, as well as raise the minimum wage for 3,000 of its workers to $15 an hour.

AT&T stock was up by 1.22 percent, to $39.02 on the day; Fifth Third stock was up by 1.34 percent, to $30.92 on the day; Comcast was up by 2.48 percent to $40.36; and Boeing was up by 0.36 percent, to $296.84.

Trump and other Republicans promoted the announced wage raises as proof that Americans would immediately enjoy the windfalls of tax cuts to corporations, a concept known as trickle-down economics. Sen. By now, companies have learned the art of crafting the type of upbeat, largely symbolic press releases our president loves, with enough big numbers to get them on the White House's good side. But some of these announcements come across as more gimmicky than others, and it's not hard to wonder if there are also other motives at work.

"If these companies had wanted to make these investments in their workforce, they could have done it before now", Gardner said.

Boeing: $300 million in investments for employee training, better workplace infrastructure and corporate giving. Boeing literally just last week authorized an $18 billion share buyback, the largest program in company history.

How does $50 billion over five years compare to what Comcast already spends on infrastructure?

Some CEOs wasted little time in promoting President Trump's tax-cut bill as a win-win-win for their workers as well as for their companies - and the country as a whole. With these investments, we expect to add thousands of new direct and indirect jobs.

Total employment at Boeing has been declining over the past few years.

Alberto Gallo, partner at Algebris Investments, said in a note that the tax cuts "will support growth in 2018, acting as a tailwind to both consumption and capital spending".

"As it relates to team members, minimum pay is a topic that we continue to review as part of our efforts to attract and retain talent, and we have been on a path to increasing the minimum hourly rate, having most recently increased it in January 2017", spokesman Peter Gilchrist told the Los Angeles Times in an email. Wells Fargo will also invest $100 million over three years to provide small businesses access to capital.

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