Media group announces bonuses due to tax cuts

Media group announces bonuses due to tax cuts
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A major media investment group announced Friday that it will give employees a $1,000 bonus as a result of the Republican tax bill that passed into law in December. 

Haim Saban, the founder of Saban Capital Group, and his wife wrote a letter to employees saying they were "inspired by what Bob Iger has done for Disney employees" and recognized the recent legislation's tax cuts for corporations, according to The Hollywood Reporter

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"As you may know, at the end of 2017, the Federal government enacted the most fundamental tax reform since 1986. These reforms are impacting our company in different ways, including a lower tax rate," the Sabans wrote. "We recognize and appreciate your hard work and dedication." 

Saban's group, a major investor in media and entertainment companies, noted that the bonuses to "eligible" employees would come out to $1,000 after taxes.

The tax legislation lowered the corporate tax rate from 35 percent to 21 percent, making the bill the largest reform to the tax code in three decades and saving corporations millions in annual profit. 

Disney announced last month that it would give 125,000 employees a one-time cash bonus of $1,000.

Media giants Comcast and AT&T also announced in December that they would give $1,000 bonuses to thousands of U.S. employees. 

Starbucks, Disney, Home Depot, JP Morgan Chase and others have announced wage raises, one-time benefits or other bonuses for employees following the tax legislation.