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Tax & Fiscal Policy

Business Roundtable supports the key pro-growth policies in the recent U.S. tax reform law. Businesses and workers now have a tax code that will help them compete and win.

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The full economic effects of tax reform will take years to play out, but it is already making a meaningful difference for America’s workers, families and communities. Immediate benefits of the tax law include increases in wages and benefits for workers, expansion of capital expenditure plans, and investments in workforce training and philanthropy. 

For example, Business Roundtable member companies have announced the following because of tax reform:

  • Larger compensation or benefits for over 2.2 million employees;
  • At least $1.95 billion in cash and stock bonuses, benefitting over 1.1 million employees;
  • $7.3 billion in contributions to pension funds for 2018;
  • Expanded 401(k) retirement benefits, increased medical and family leave benefits, and higher levels of profit-sharing for employees;
  • Over $84 billion in capital expenditure plans over the next five years;
  • The creation of tens of thousands of new American jobs;
  • Monthly utility bill savings;
  • More investments in workforce training; and
  • $1.4 billion in charitable donations.

Policy Perspectives

Business Roundtable supports tax and fiscal policies that promote U.S. business investment, competitiveness and job creation.

Benefits of Tax Reform

Americans are benefitting from the Tax Cuts and Jobs Act.

Competitiveness

American Businesses and Workers now have a tax system that will help them compete and win.

Tax Reform is Delivering

Hundreds of U.S. businesses – including many Business Roundtable member companies – have announced bonuses, raises, and increased family leave and retirement benefits for their workers.

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Spotlight: Boosting Innovation and Opportunity at Boeing

Dennis Muilenburg, Chairman, President, and CEO of The Boeing Company, describes how tax reform is empowering Boeing to invest hundreds of millions of dollars in its employees, its communities, and its manufacturing capabilities. 

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Thanks to the enactment of tax reform, our tax code is no longer an economic impediment. The tax law includes a corporate income tax rate that is competitive with the rest of the developed world, a territorial-type international tax system that incentivizes companies to invest in the U.S., and tax relief for American families. But more work remains to ensure that tax reform continues to support U.S. economic growth and competitions for the long term.

Business Roundtable supports legislation to improve tax reform and provide certainty for businesses by making expiring provisions permanent. Business Roundtable is also working with the U.S. Treasury and Internal Revenue Service to achieve regulations that implement tax reform in a way that enhances the pro-growth intent of the law. Further improvements to the U.S. international corporate tax system may be necessary to ensure a competitive edge.

"Our old corporate tax system created perverse incentives for American companies to store and invest money overseas rather than here at home. Tax reform changes that — and America’s workers are the most important winners."

- Joshua Bolten, President & CEO, Business Roundtable

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Critics of tax reform are calling for raising the corporate income tax rate and repealing other pro-growth parts of the tax law. That misguided approach could potentially reverse the benefits American workers and families have received from tax reform and also make American businesses uncompetitive, meaning less investment and fewer jobs.

See how America’s corporate tax rate measures up to other countries before and after tax reform.

Here's what some Business Roundtable member companies are doing to create jobs, raise wages and increase investment as a result of tax reform.

Marriott employees will get $140 million after corporate tax breaks

Marriott International Inc. puts cash from savings on corporate taxes into employee retirement accounts

How Tax Reform is Boosting Innovation and Opportunity at Boeing

Dennis Muilenburg – Chairman, President and CEO of The Boeing Company – describes how tax reform is empowering Boeing to invest hundreds of millions of dollars in its employees, its community, and its manufacturing capabilities.

AT&T, Comcast giving $1,000 bonuses to hundreds of thousands of workers after tax bill

Telecom giant AT&T was quick to respond to news of U.S. tax reform, announcing it would give some employees bonuses once the legislation is signed into law.

Honeywell Reports Strong Fourth Quarter And 2017 Results, Raises 2018 Guidance To Reflect Lower Tax Rate

Honeywell announced financial results for the fourth quarter and full year of 2017, and raised its 2018 earnings2 guidance by 20 cents to a new range of $7.75 - $8.00 to reflect an expected lower tax rate due to the U.S. Tax Cuts and Jobs Act of 2017.

Pay will rise soon for 50,000 Wells Fargo workers, CEO says

Wells Fargo plans to raise the pay for some of its lower-paid workers next month, in a move that would boost compensation for about 50,000 employees, the bank’s CEO told the Charlotte Observer on Tuesday.

Anthem offers $1,000 bonuses due to tax cut

Insurance giant Anthem announced it would give $1,000 to the retirement accounts for more than 58,000 employees and recent retirees due to tax reform.

UPS Boosts Investments By $12 Billion On Favorable Tax Law Impact

UPS today announced more than $12 billion in investments to expand the company’s Smart Logistics Network, significantly increase pension funding, and position the company to further enhance shareowner value.

Harris Corporation Announces Tax Reform Investment Plans

Harris Corporation (NYSE:HRS) today announced that, as a result of the passage of the tax reform bill, the company anticipates making an additional contribution to its employee pension fund, increasing its investment in research and development, and providing a one-time stock grant to all of its non-executive employees. T

Cigna increases minimum wage to $16 an hour and further accelerates investments in employees and community health

Global health service company, Cigna (NYSE: CI), today announced that the net financial benefits of United States tax reform will allow the company to further accelerate investments in our employees, our capabilities and our customers, clients, partners, and communities.

Pitney Bowes to Make Long-Term Investment in Employees and Clients In Response to Tax Reform

Pitney Bowes (NYSE: PBI), a global technology company that provides innovative products and solutions to power commerce, announced that, with the signing of the Tax Cuts and Jobs Act in December 2017, the Company will make an investment commitment of more than $18 million on an annualized basis to raise wages of the majority of its U.S. hourly employees.

Pfizer Gains From Tax Law, Pledges to Boost Spending in U.S.

Pfizer Inc., benefiting from U.S. tax reform, is pledging to invest in the U.S. through manufacturing and bonuses for its workers.

ExxonMobil credits tax reform in announcement to invest more than $50 billion over the next 5 years to expand business in the U.S.

At ExxonMobil, we plan to invest more than $50 billion over the next five years to expand our business in the United States. 

Lockheed Martin to invest $200 million in R&D and capital expenditures in 2018, contribute $5 billion toward pension requirements over next 3 years

Lockheed Martin, the world’s largest defense contractor, reported record annual sales of $51 billion on Monday, up from $47.2 billion a year earlier, as the Bethesda-based company saw growth in all four of its major business divisions.

FedEx commits more than $3.2 billion in wage increases, bonuses, pension funding and expanded U.S. Capital investment following passage of tax reform

FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act.

Verizon employees to receive shares of stock as part of company’s expected tax savings

Verizon says employees, other than top management, will receive 50 shares of restricted stock, the price of which will be set on February 1.

Home Depot to give bonuses of up to $1,000 to U.S. hourly workers

Home Depot Inc. will give its U.S. hourly workers a one-time cash bonus of up to $1,000 in the fourth-quarter of fiscal 2017, the home improvement retailer said Thursday. The bonus "was made possible by the new tax reform bill," according to a statement from Chief Executive Craig Menear, anticipating savings going forward.

Novelis announces 125 new jobs with a $300 million investment in Kentucky

Slated to open in 2020, the greenfield facility will have an annual nameplate capacity of 200,000 metric tons.

JPMorgan Chase Makes Long-Term U.S. Investment in Employees, Branch Expansion and Local Economic Growth

$20 billion, five-year comprehensive investment to help employees, and support job and local economic growth in the United States.

Apple announces 20,000 new jobs, $350 billion contribution to U.S. economy due to tax reform

It says it will create 20,000 new jobs and open a new campus.

FPL to apply federal tax savings toward $1.3 billion cost of Hurricane Irma to prevent increase in customer rates

Tax savings in future years may enable FPL to continue the current rate agreement and avoid a general base rate increase potentially through the end of 2022.

Bank of America to give bonuses to about 145,000 employees following tax overhaul

Bank of America Corp. is giving $1,000 bonuses tied to the tax-overhaul bill to more than half of its employees, making the bank the latest company to announce such a perk since the legislation passed this week.

Walmart to raise its starting wage to $11, give some employees bonuses following tax bill passage

Walmart's workers will soon reap the benefits of the recent tax law changes, as the world's largest private employer raises its starting wage, creates new benefits and distributes bonuses to eligible workers.

American Airlines to give $1,000 bonuses to employees after tax reform passage

Southwest and American Airlines have joined a handful of corporate giants that have announced $1,000 employee bonuses following the GOP tax overhaul that President Donald Trump signed into law last month.

Travelers cites U.S. tax overhaul in pledging $1,000 worker bonus

Joining a growing list of companies handing out cash in the wake of federal legislation that slashes corporate tax rates, the Travelers Cos. Inc. told its staff Friday it will give bonuses of $1,000 to thousands of employees.

Visa​ is raising its 401(k) matching for employees in response to tax reform

Visa​ is raising its 401(k) matching for employees in response to tax reform; company also will examine other long-term investments.

Comcast says tax overhaul will mean $1,000 bonuses for some employees

AT&T said Wednesday that it plans to invest an additional $1 billion into its U.S. networks in 2018 and give hundreds of thousands of employees a one-time bonus after the passage of the Republican-led tax bill in Congress.

TSYS is giving majority of employees a special $1,000 cash bonus

For the majority of the 11,500 employees of TSYS, which includes about 4,800 in Columbus, the new year will be starting off with an extra $1,000 in their paycheck.

Western & Southern latest Cincinnati company to hand out tax cut-related bonuses

Downtown Cincinnati insurance giant Western & Southern Financial Group is the latest local company to give its employees bonuses at least partly as a result of the corporate tax cut. And its bonuses are bigger than most.

"The recently enacted tax law lowers the US corporate rate to 21 percent...That rate makes it attractive once again for companies to do what they probably would have preferred all along: to invest and hire more, right here at home."

Joshua Bolten, President & CEO, Business Roundtable

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