Southwest and American Airlines celebrate the GOP tax plan with $1,000 bonuses for employees

Southwest and American Airlines celebrate the GOP tax plan with $1,000 bonuses for employees


American Airlines Southwest AirlinesDavid McNew/Getty Images

  • American and Southwest Airlines announced they will
    give $1,000 bonuses to employees in celebration of the GOP tax
    plan President Donald Trump signed into law last
    month.
  • The two airlines, which both announced their plans on
    Tuesday, cited the tax plan specifically, which, among other
    things, lowers the corporate tax rate from 35% to 21%.
  • Several other large corporations had touted similar
    employee bonuses immediately after Congress passed the Tax Cuts
    and Jobs Act on December 20.

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.

In a pair of press releases on Tuesday, both airlines
specifically cited sweeping new tax reforms that passed Congress
on December 20. Among other things, the legislation known as the
Tax Cuts and Jobs Act cuts the corporate tax rate from 35% to
21%.

American Airlines’ bonuses, given to employees at its mainline
and wholly owned regional carriers,
totals about $130 million
, according to the airline, which
said the money would arrive sometime in the first quarter of
2018. Southwest said all of its full-time and part-time employees

would receive their $1,000 on January 8
.

“We applaud Congress and the President for taking this action to
pass legislation, which will result in meaningful corporate
income tax reform for the transportation sector in general, and
for Southwest Airlines, in particular,” Southwest chairman and
CEO Gary Kelly said in a statement.

Additionally, the Dallas-based carrier said it would earmark $5
million for charitable causes.

The two airlines join a handful of large corporations that
announced $1,000 employee bonuses immediately following the tax
bill’s passage.
AT&T said it would dole out a total of $200 million
in
extra cash. Bank of America
announced
it would put up $145 million.

The gestures
have received mixed reviews
as economic policy experts
sounded alarms about the GOP tax law’s potentially negative
effects. Former US Treasury secretary Jacob Lew
called the tax overhaul a “ticking time bomb”
on Tuesday, and
said the “very concentrated benefits for global corporations and
the top 1%” threatened to leave the US “broke.”

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