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Disney giving employees $1K bonuses, credits tax bill

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Posted at 5:55 AM, Jan 24, 2018
and last updated 2018-01-24 05:55:00-05

(CNN) – Disney announced Tuesday it will give 125,000 employees a $1,000 cash bonus as well as invest $50 million in a tuition program.

Disney CEO Bob Iger said in a statement, “These initiatives will have both an immediate and long-term positive impact.”

The company credits the new tax bill, which cut the corporate tax rate from 35 percent to 21 percent.

The Disney bonus will be given to full- and part-time, non-executive employees who have worked for the company since at least Jan. 1, 2018.

The education initiative will be available to nearly 88,000 hourly employees in the U.S, according to CNBC.

Several companies, including AT&T, Walmart, American Airlines and Bank of America, have promised similar incentives.

President Trump has praised the response.

Others argue the law benefits companies and investors more than workers.

Copyright 2018 CNN. All rights reserved. Raycom News Network contributed to this report.