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Southwest Airlines plans a $1,000 employee bonus, new planes with tax savings

By Sniper following x   2018 Jan 11, 4:38pm 1,515 views   37 comments   watch   sfw   quote     share    


Wait, didn't the Dems say the tax bill was a give-away to the 1%, who knew Southwest workers are in the 1%.

Southwest Airlines is giving its more than 50,000 employees a one-time $1,000 cash bonus, the company said Tuesday, joining the likes of American Airlines and AT&T in doling out a post-tax reform payment to workers.

The bonuses, which will be paid to all full- and part-time employees, are expected to cost about $70 million, the company said.

Southwest also announced plans to purchase 40 Boeing 737 Max 8 planes that it held options for, with 15 aircraft to be delivered in 2019 and 25 in 2020. The planes have a total list price of almost $4.5 billion, according to Bloomberg News, although discounts are typically negotiated for large aircraft purchase orders.

Southwest’s announcement came the same day American Airlines announced it would give its roughly 127,000 employees, including those at wholly-owned regional airlines, a $1,000 bonus. AT&T is also giving employees a one-time $1,000 bonus attributed to the tax changes.


https://www.dallasnews.com/business/southwest-airlines/2018/01/03/southwest-airlines-plans-1000-employee-bonus-new-planes-tax-reform-savings
#economics
1   anotheraccount   ignore (1)   2018 Jan 11, 4:49pm   ↑ like (1)   ↓ dislike (2)   quote        

Sniper says
Southwest also announced plans to purchase 40 Boeing 737 Max 8 planes that it held options for, with 15 aircraft to be delivered in 2019 and 25 in 2020.


Southwest had plans for those planes for a long time. West Coast - Hawaii flights. They sure could not afford them without a tax cut.
2   anotheraccount   ignore (1)   2018 Jan 11, 4:50pm   ↑ like (1)   ↓ dislike (4)   quote        

Where is my $1000 bonus? why do I have to pay for this tax cut?
3   anonymous   ignore (null)   2018 Jan 11, 4:54pm   ↑ like (0)   ↓ dislike (0)   quote        

Looks like SWA will have a write off of $70 million come time to do there taxes next year. That's $70 miliion in revenue that they won't have to pay any tax on.

See how that works?
4   Patrick   ignore (0)   2018 Jan 11, 4:56pm   ↑ like (3)   ↓ dislike (0)   quote        

Southwest has been my best stock ever. I admit it was mostly luck, but also fit my criteria of a reasonable p/e, paying a dividend, and providing a service I personally know.
5   anotheraccount   ignore (1)   2018 Jan 11, 5:11pm   ↑ like (1)   ↓ dislike (0)   quote        

Patrick says
I admit it was mostly luck, but also fit my criteria of a reasonable p/e, paying a dividend, and providing a service I personally know.


The tax cut must be a bigger factor than the rising oil price. You would think that with oil back in the 60s, airline stocks would take a hit.
6   WookieMan   ignore (0)   2018 Jan 11, 5:18pm   ↑ like (3)   ↓ dislike (0)   quote        

I'm probably out of touch I suppose, but a $1k bonus really seems like nothing at all to me. Kudos to these employers I suppose. This probably helps people more than I know.
7   Sniper   ignore (11)   2018 Jan 11, 5:58pm   ↑ like (3)   ↓ dislike (1)   quote        

WookieMan says
I'm probably out of touch I suppose, but a $1k bonus really seems like nothing at all to me. Kudos to these employers I suppose. This probably helps people more than I know.


How much does it help a $15/hr baggage handler?
8   anonymous   ignore (null)   2018 Jan 11, 6:07pm   ↑ like (2)   ↓ dislike (0)   quote        

Chewy said: I'm probably out of touch I suppose, but a $1k bonus really seems like nothing at all to me.
With the new standard deduction, all that money is tax free to boot! (married, only one person working).
9   Strategist   ignore (1)   2018 Jan 11, 6:08pm   ↑ like (2)   ↓ dislike (0)   quote        

WookieMan says

I'm probably out of touch I suppose, but a $1k bonus really seems like nothing at all to me. Kudos to these employers I suppose. This probably helps people more than I know.


They can now get the iPhone X.
10   WookieMan   ignore (0)   2018 Jan 11, 6:19pm   ↑ like (2)   ↓ dislike (0)   quote        

Sniper says
How much does it help a $15/hr baggage handler?

I guess for them, with 2 weeks vacation, it's about a 3.3% boost to their overall gross pay. Every bit helps I suppose. I'm sure the credit card companies appreciate some balances getting paid down from these folks getting the bonuses.

Strategist says
They can now get the iPhone X


This. This is what it will get used for. Or similar products.
11   WookieMan   ignore (0)   2018 Jan 11, 6:41pm   ↑ like (0)   ↓ dislike (0)   quote        

WookieMan says
Sniper says
How much does it help a $15/hr baggage handler?

I guess for them, with 2 weeks vacation, it's about a 3.3% boost to their overall gross pay. Every bit helps I suppose. I'm sure the credit card companies appreciate some balances getting paid down from these folks getting the bonuses.

Oh yeah, and that's if this was a single person. If it's a couple making the same each it's a gross 1.65% increase in pay assuming the spouse isn't getting a bonus.

So yeah, these are earth shattering numbers. Maybe if they have kids they can find a Red Roof Inn that has an indoor pool for their kids to play in during the winter for one night?
12   WookieMan   ignore (0)   2018 Jan 11, 6:42pm   ↑ like (0)   ↓ dislike (0)   quote        

Maybe get a solid meal at Denny's?
13   anonymous   ignore (null)   2018 Jan 11, 9:08pm   ↑ like (0)   ↓ dislike (0)   quote        

WookieMan says

Oh yeah, and that's if this was a single person. If it's a couple making the same each it's a gross 1.65% increase in pa


What will the average executive at south west be getting extra in the new tax bill?
14   anonymous   ignore (null)   2018 Jan 11, 9:08pm   ↑ like (1)   ↓ dislike (0)   quote        

Let's see, sw gets half a billion a year in tax cuts EVERY YEAR and gives out a ONE TIME 70 million dollar bonus to employees to make trump look good. . Nice. Talk about scratching backs. Where do I get a deal like that.
15   Strategist   ignore (1)   2018 Jan 11, 9:14pm   ↑ like (3)   ↓ dislike (0)   quote        

anon_e144f says
WookieMan says

Oh yeah, and that's if this was a single person. If it's a couple making the same each it's a gross 1.65% increase in pa


What will the average executive at south west be getting extra in the new tax bill?


It's not important. What others get is irrelevant to what you get.
16   anotheraccount   ignore (1)   2018 Jan 11, 9:22pm   ↑ like (0)   ↓ dislike (0)   quote        

Strategist says
It's not important. What others get is irrelevant to what you get.


Of course it does, when we are borrowing money to pay for it.
17   Sniper   ignore (11)   2018 Jan 11, 9:49pm   ↑ like (4)   ↓ dislike (1)   quote        

anotheraccount says
Strategist says
It's not important. What others get is irrelevant to what you get.


Of course it does, when we are borrowing money to pay for it.


Got those Obama links yet where this was an issue for the last 8 years?
18   WatermelonUniversity   ignore (1)   2018 Jan 11, 9:51pm   ↑ like (0)   ↓ dislike (4)   quote        

Southwest $5B profit annually. that's 500M tax saving a year. but only 50M in ONE TIME bonus. that's giving employees 10% and keeping 90% of the cut.

next year employees probably get shit.

but i can see how mathematically challenged, low IQ Trump supporters are so impressed.
19   Sniper   ignore (11)   2018 Jan 11, 9:56pm   ↑ like (5)   ↓ dislike (1)   quote        

BorderPatrol says
Southwest $5B profit annually. that's 500M tax saving a year. but only 50M in ONE TIME bonus. that's giving employees 10% and keeping 90% of the cut.

next year employees probably get shit.


How much did they get in bonuses when Obama was president?

Oh that's right... ZERO...

Is $1000 more or less than ZERO?
20   BlueSardine   ignore (1)   2018 Jan 12, 5:46am   ↑ like (0)   ↓ dislike (0)   quote        

Liberal redistribution of wealth is the cause.
anotheraccount says
why do I have to pay for this tax cut?
21   WookieMan   ignore (0)   2018 Jan 12, 8:09am   ↑ like (1)   ↓ dislike (0)   quote        

anon_e144f says
WookieMan says

Oh yeah, and that's if this was a single person. If it's a couple making the same each it's a gross 1.65% increase in pa


What will the average executive at south west be getting extra in the new tax bill?

Depends how high level you're talking. The top executive will do very well with the new top bracket assuming most of their compensation is W-2 paycheck style and not loaded with stocks or other beni's. Technically exec's making over $600k (married filing jointly) will save about 6.4% on any W-2 earnings over that amount. And they saved as well on the way to that $600k with the changes in brackets.

So yeah, better then a token one time bonus that equals 3ish% for a $15/hr worker. But anyone making $600k plus is probably getting screwed on the new SALT deduction rules unless they live in a no income tax state. So it's not all a win for the rich guy either. There's a lot of nuance to this and I'm really interested to see how it plays out. I've heard both sides of the argument and I'm still torn what to think of it all.

And I get it, the bonus was $0 before the tax plan and it's now $1k. It still really is a rather meager bonus if you ask me. I'd obviously take it, don't get me wrong there. And the money will get dumped back into the economy, well, because no one saves. So the companies doing this are technically providing a boost to us all. But if it's only a one time thing, then in the long run it really does seem like a show. Scratch my back and I'll scratch yours.
22   TwoScoopsOfWompWomp   ignore (2)   2018 Jan 12, 8:38am   ↑ like (1)   ↓ dislike (0)   quote        

The median household income in the US is about $50k

$1000 is Little League. A Violin and lessons. A semester of Community College for Junior. Taking a week down by the lake with wife and two kids.

That's just the bonus though, there's a tax cut on top of it, which should be another $1000 for the typical family.
23   Sniper   ignore (11)   2018 Jan 12, 8:39am   ↑ like (3)   ↓ dislike (2)   quote        

anonymous says
Virtually no one is rolling out an increase in 401-K matching which would actually be a much better deal for the workers long term. I've read of one firm so far..


Oops... wrong again..

Tax reform prompts Visa to raise 401(k) match for employees
The company said it will increase its contribution to 10 percent of base salary.
Visa said it is raising its match on employees' 401(k) contributions, in response to tax reform.
https://www.cnbc.com/2018/01/08/tax-reform-prompts-visa-to-raise-401k-match-for-employees.html
Nationwide announced it will pay $1,000 bonuses to about 29,000 employees and increase matching 401k contributions for all its associates.

The news follows a similar announcement by health insurance giant Aflac regarding an increase in its 401k match.
https://401kspecialistmag.com/another-company-cites-tax-bill-in-401k-match-bump/#.WljkDnoelS0
24   Sniper   ignore (11)   2018 Jan 12, 8:41am   ↑ like (2)   ↓ dislike (1)   quote        

WookieMan says
And I get it, the bonus was $0 before the tax plan and it's now $1k. It still really is a rather meager bonus if you ask me. I'd obviously take it, don't get me wrong there. And the money will get dumped back into the economy, well, because no one saves. So the companies doing this are technically providing a boost to us all. But if it's only a one time thing, then in the long run it really does seem like a show.


Starting in February, all the new tax codes start, so MANY people will be seeing increased amounts in their paychecks.

Want to guess where that money will go?
25   WookieMan   ignore (0)   2018 Jan 12, 8:51am   ↑ like (0)   ↓ dislike (0)   quote        

TwoScoopsPlissken says
Taking a week down by the lake with wife and two kids.

I have zero idea how someone could spend a week at a lake with two kids for $1k. Not saying it's impossible, but that's not a vacation to me. Not trying to throw down here, that line caught me off guard though. Might need to reconsider where I vacation I suppose ;)

Totally agree with everything else. The reality is the tax plan puts more money in the pockets of most people/families making $100k or less. I don't think this is a bad thing. But even if the economy booms, we have to keep track of the debt and how it moves that needle. If the national debt increases at the same clip or more, then I'm not sure it's worth it. We'll see. I honestly feel like it's going to take a good amount of time to see how it plays out. I think it's way to early to declare victory or defeat on either side of the debate.

And yes, the rich guys make out well with this plan as well. I can't forget them. Some of them might be pretty SALTy if you get what I mean.
26   Sniper   ignore (11)   2018 Jan 12, 9:01am   ↑ like (4)   ↓ dislike (1)   quote        

WookieMan says
And yes, the rich guys make out well with this plan as well.


That's because they pay the bulk of the taxes now..

Funny how that math works out.
27   Sniper   ignore (11)   2018 Jan 12, 9:03am   ↑ like (4)   ↓ dislike (1)   quote        

TwoScoopsPlissken says
The median household income in the US is about $50k

$1000 is Little League. A Violin and lessons. A semester of Community College for Junior. Taking a week down by the lake with wife and two kids.

That's just the bonus though, there's a tax cut on top of it, which should be another $1000 for the typical family.


Yep...

Another $30 bucks a week in the paycheck is a tank and a half of gas to get to work... But hey, that doesn't matter to the "little people".

If they only could have gotten that $2500 check from Obama for their savings on their Obamacare policy, we would be perfect!!
28   anonymous   ignore (null)   2018 Jan 12, 9:20am   ↑ like (0)   ↓ dislike (0)   quote        

Sniper says
Want to guess where that money will go?


Asked and answered.

For the last time, hookers and blow, that's where it will go.
29   anotheraccount   ignore (1)   2018 Jan 12, 10:45am   ↑ like (0)   ↓ dislike (0)   quote        

Sniper says
That's because they pay the bulk of the taxes now..

Funny how that math works out.


No they don't. Payroll tax paid by the middle class is the biggest contributor to Fed revenues.
30   anotheraccount   ignore (1)   2018 Jan 12, 11:53am   ↑ like (0)   ↓ dislike (0)   quote        

Sniper says
Source??? (I know, I'll wait a long time for that)


https://www.cbpp.org/research/federal-tax/policy-basics-where-do-federal-tax-revenues-come-from
Payroll tax is 34% is of total contributions and 98% of it paid by people making less than 100K.
federal income tax is 47% and and top 1% pays about 50% of it = 23%

33%>23% Is this clear enough for you?
31   anotheraccount   ignore (1)   2018 Jan 12, 11:57am   ↑ like (1)   ↓ dislike (0)   quote        

@Sniper Oh an here is another Goldman warning about deficits: https://www.zerohedge.com/news/2018-01-12/here-comes-debt-tsunami-treasury-issuance-more-double-2019
Seriously please try to refute my posts. Middle class paying the most tax is not my opinion -- it's a hard cold fact. Yet top 1% are getting the most of the tax cut. Maybe even more concentrated in top 0.1%. I would like to see trickle up vs trickle down as Bannon wanted. Bannon wanted a tax cut for middle class and 41% rate for the rich. He knows that trickle down BS does not work.
32   Patrick   ignore (0)   2018 Jan 12, 12:06pm   ↑ like (0)   ↓ dislike (0)   quote        

Please use caution lest this descend into a flame war which must be deleted.
33   Patrick   ignore (0)   2018 Jan 12, 12:53pm   ↑ like (0)   ↓ dislike (0)   quote        

Another "mic-drop" comment deleted.
34   Sniper   ignore (11)   2018 Jan 12, 1:59pm   ↑ like (2)   ↓ dislike (1)   quote        

Patrick says
Another "mic-drop" comment deleted.


Unbelievable.
35   Sniper   ignore (11)   2018 Jan 12, 2:01pm   ↑ like (3)   ↓ dislike (1)   quote        

anotheraccount says
https://www.cbpp.org/research/federal-tax/policy-basics-where-do-federal-tax-revenues-come-from
Payroll tax is 34% is of total contributions and 98% of it paid by people making less than 100K.
federal income tax is 47% and and top 1% pays about 50% of it = 23%

33%>23% Is this clear enough for you?


Be careful with percentages, as invoices and bills are paid with dollars, not percentages.

36   Sniper   ignore (11)   2018 Jan 12, 2:06pm   ↑ like (4)   ↓ dislike (1)   quote        

anotheraccount says
Seriously please try to refute my posts.


As of 2010, 68.8% of Federal individual tax receipts including payroll taxes, were paid by the top 20% of taxpayers by income group. The top 1% paid 24.2% whereas the bottom 20% paid 0.4% due to deductions and the Earned income tax credit. With 2013 tax law changes, the top 1% will pay an even larger share.[1]


https://en.wikipedia.org/wiki/Progressivity_in_United_States_income_tax
37   anonymous   ignore (null)   2018 Jan 12, 2:59pm   ↑ like (0)   ↓ dislike (0)   quote        

Sniper says
The top 1% paid 24.2%


Yet are receiving 45% of the tax cut.

So that means that 99% of the people receive 55% of tax cut but are paying 75.8% of the taxes.

Seems like the 99% should be getting a bit more of that tax cut, I mean if you really want to get the economy going you'd put the money into he hands of the people who would spend it the fastest, not the people who will off shore it the fastest.




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