This past Friday, FedEX Corporation announced that it was putting billions towards raises and other investments. The total amount is going to be $3.2 billion, which came about as result of Donald Trump's tax overhaul.
FedEx said it expects the country's GDP will increase, and this would be the result of the Tax Cuts and Jobs Acts. The company added that overall investment in America would increase too. FedEx continued to say that it intends to increase compensation for their employees by more than $180 million, and two-thirds of that will go to employees paid hourly.
FedEx plans expansion in Indianapolis
Furthermore, FedEx will invest over $1.1 billion in expanding its hub in the city of Indianapolis, as well as upgrading its hub in Memphis. FedEX's hub in Indianapolis is two-million square-feet and employs around 700 full-time workers. An estimated 3,000 part-time employees also work there.
Not only that, but it plans on investing into its pension plan. Over $1.3 will be invested in the pension plan. The goal is to ensure that the pension plan is one of the best funded retirement programs in America.
Other Major Companies following suit
FedEx isn't the only company to announce reinvestment following the tax overhaul. Other companies include Apple and Disney.
AT&T, Walmart and Home Depot are a few other companies that have decided to follow suit.
A few weeks ago, Walmart announced it was increasing its hourly wage to $11 and it would give bonuses to its employees. Amid the tax overhaul, it also announced it would expand both parental and maternity leave. Certain workers would also receive a cash bonus, a one-off of $1,000 payment, which will benefit hundreds of thousands of employees.
The CEO of Walmart, Doug McMillon, said the company was building on investments that it had been making in its associates, as well as their wages. He added that Walmart appreciated the hard work their employees do. McMillon also said they were in the early stages of assessing the opportunities that the tax overhaul creates for them.
Shortly after the tax overhaul was announced, AT&T said it would be giving hundreds of thousands employees $1,000 bonuses. It said it would also invest $1 billion in America, and that's just in 2018 alone. The CEO, Randall Stephenson, said that the tax overhaul would create good paying jobs and help with economic growth.
All of the above is the kind of investment that Donald Trump has talked about. Recently, he spoke about how the world was witnessing the rise of a strong and prosperous America. The president of the United States added that now is a great time to invest in the United States.
