Reynolds American gives bonuses, keeps 99 pct. of tax cuts
WINSTON-SALEM, N.C. (AP) — Reynolds American Inc. is giving most of its 5,500 employees a $1,000 bonus and keeping more than 99 percent of its earnings windfall from corporate tax reductions.
The Winston-Salem Journal reports the one-time bonus will cost parent company British American Tobacco PLC nearly $4.5 million.
After Republicans reduced corporate taxes from 35 percent to 21 percent, British American Tobacco said the cut would boost its earnings by an estimated 6 percent, or $541 million, and that it had gained a $13.3 billion tax-credit benefit from the revaluation of Reynolds’ deferred tax assets and liabilities.
Reynolds spokesman David Howard said “RAI and its operating companies applaud Congress and the president for bringing corporate income tax reform to a reality, and are using this opportunity to show appreciation to their hard-working employees.”
Information from: Winston-Salem Journal, http://www.journalnow.com