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bonuses make news, but raises are in short supply

bonuses make news, but raises are in short supply News Article With The full text news. The Resource Link is down the post and you can View this News Article in the source page.



bonuses make news, but raises are in short supply

by christopher rugaber and josh boak | associated presswashington — american airlines is handing out $1,000 bonuses to its employees. so are at&t, bank of america and nationwide insurance. the same for comcast, jetblue airways and us bancorp.such announcements, coming from dozens of companies, have followed the passage of the republican tax plan that president donald trump signed into law last month. the plan slashed the corporate tax rate from 35 percent to 21 percent. the companies say the bonuses they’ve announced are a way to share some of their bounty with their workers.start your day with the news you need from the bay area and beyond. sign up for our new morning report weekday newsletter.the bonuses are one-time payouts, not the permanent pay raises that trump and congressional republicans have said will eventually result from the corporate tax cuts. over time, bonuses are far less valuable to employees than wage increases.so far, most companies haven’t said whether any permanent pay increases are in the works. economists caution that the corporate income tax cut’s effect on average pay, if any, might not become apparent for several years.“as a worker, it’s great to get a one-off bonus, but that doesn’t guarantee anything for the next year,” said stephen stanley, chief economist at amherst pierpont. “you’d rather have the raise, because next year you’re working off the higher base.”eventually, stanley thinks the lower corporate tax rates will le...