Economy & Policy

Walt Disney responds to US tax reforms with £700 bonuses

Visitors walk through the Alice in Wonderland Maze at Walt Disney Co’s Shanghai Disneyland theme park during a trial run in 2016


Walt Disney has joined the growing list of American businesses handing out extra bonuses in response to Donald Trump’s sweeping tax reforms.

Disney said on Tuesday that more than 125,000 staff will get a $1,000 (£714) cash bonus as a result of the major tax overhaul, which slashes corporate tax from 35pc to 21pc.

It also promised to pour $50m into a fund aimed at covering tuition costs for some 88,000 hourly staff as a result of the tax change, which is aimed at drawing US money back from tax havens overseas.

A growing number of US companies hoping to benefit from the new legislation, which Mr Trump last month called a “Christmas present” for middle earners, are starting to dish out extra rewards to employees.

Bank of America, Walmart and  AT&T have already offered thousands of US-based staff $1,000 bonuses since the tax changes, while JP Morgan Chase unveiled a $20bn investment plan on Tuesday.

However businesses based outside of the US are not expecting huge windfalls. Last month Treasury ministers from Britain, France, Germany, Italy and Spain told the US Treasury they had “significant concerns” about the tax changes “having a major distortive impact on international trade”. However the Tax Cuts and Jobs Act was signed into US law on Dec 22.