Federal Express (FedEx) announced Friday that employees will receive $3.2 billion of benefits, thanks to President Donald Trump delivering on his promise to lower taxes.
“FedEx Committing More Than $3.2 Billion in Wage Increases, Bonuses, Pension Funding and Expanded U.S. Capital Investment Following the Passage of the Tax Cuts and Jobs Act,” the company declared in a press release:
FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
1) Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance-based incentive plans for salaried personnel.
2) A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
3) Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
“FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States,” the company stated.
FedEx is the latest of more than 250 companies to shower financial tax reform-related benefits on more than three million American workers, Americans for Tax Reform (ATR) reports:
“Thanks to the Tax Cuts and Jobs Act, at least 261 companies have already announced wage and salary increases, bonuses, or 401(k) match increases, according to a list compiled by Americans for Tax Reform. The list, found at www.atr.org/list is being continuously updated.
“At least 3 million Americans are receiving special tax reform bonuses. This number does not even include those receiving pay increases or increased 401(k) contributions from their employer due to tax reform.”