Pharmaceutical giant Pfizer has announced new investments and bonuses for employees following the GOP Tax plan.
The Hill reports:
Pfizer on Tuesday announced plans for new investments and bonuses following the enactment of the GOP tax law.
The pharmaceutical giant said it is going to make about $5 billion in capital investments in the U.S. over the next five years. The company also said it has set aside $100 million for one-time bonuses to be paid to non-executive employees in the first quarter of this year.
Additionally, the company made a $200 million contribution to its charitable foundation following the law’s passage, and said that it plans to make a $500 million contribution to its pension plan this year.
Pfizer reported a benefit of about $11 billion in 2017 as a result of the new tax law, “primarily reflecting the remeasurement of U.S. deferred tax liabilities,” according to a news release on the company’s earnings.
The company said it expects to pay $15 billion in taxes over the next eight years due to a one-time tax in the new law on companies’ foreign earnings that have been held overseas.
“Regarding tax reform, I am pleased that the aspects of most importance to us were addressed in the new tax code, strengthening our ability to make capital allocation decisions that maximize patient benefit and enhance shareholder value,” Pfizer Chief Financial Officer Frank D’Amelio said in a news release.
Pfizer’s announcement was touted by Republicans, with Speaker Paul Ryan’s (R-Wis.) office and Senate Finance Committee Republicans promoting articles about it.