JPMorgan Chase and Disney latest companies to pass on tax savings


Reuters -- January 23rd, 2018

JPMorgan Chase & Co unveiled a $20 billion investment plan on Tuesday to hike wages, hire more employees, open new branches and expand its business as it takes advantage of sweeping changes in tax law and a more favorable regulatory environment in the most explicit use of tax savings announced by any major bank.

JPMorgan said it would raise wages for 22,000 employees by  an average of 10 %, hire 4,000 employees and add up to 400 new Chase branches.  The largest U.S. bank by assets will also increase small business lending by $4 billion and increase loans to customers seeking affordable homes by 25 % to 50 billion.

The Wrap -- Crediting the Trump tax cuts the Walt Disney company announced it will give $1,000 cash bonuses to 125,000 U.S. based employees, for a whopping total of $125 million.  Disney CEO Bob Iger said the bonuses come as a result of the recently enacted tax reform passed by the Republicans in December.  All U.S. based Disney employees, either hourly or salaried, who have been with the Walt Disney company since January 1st of this year will be eligible.

Disney, which acquired 21st Century Fox assets for 52.4 billion in December, also announced a new higher education initiative for its hourly workforce funded with an initial investment of 50 million.  Close to 88,000 employees will be eligible for the program, which will pay for college or vocational training, including courses unrelated to specific responsibilities within the company.  Disney said it will provide up to 25 million in funding to the program annually.  The bonuses and education initiative amount to a total allocation of more than 175 million for this fiscal year.

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