A Maryland manufacturer will pay $1,000 bonuses to full-time employees as a result of the Republican tax cuts, a move cited by House Speaker Paul Ryan’s press office Wednesday as an example of the tax law working.
Dixon Valve, a company in Chestertown that makes hose fittings and accessories, said the bonuses were a “direct result” of the tax overhaul and regulatory relief.
“While the new tax law is far from perfect, it is a great start in helping companies like Dixon reinvest in the future,” CEO R.L. Goodall wrote in a letter to employees.
Hundreds of companies have announced bonuses, raises or other benefits for workers tied to the tax overhaul, according to the anti-tax group Americans for Tax Reform.
Dixon Valve’s announcement stands out, though, because it is one of the companies that Ryan visited in October as he was trying to build support for the massive legislation.
Some Democrats have criticized the bonus announcements, saying they fall short of permanent salary or wage increases. White House economists have maintained that the cut in the corporate tax rate from 35 percent to 21 percent will increase wages over the medium term.
Dixon Valve didn’t respond to an inquiry regarding the announcement and whether the company would boost wages.
