Billionaire Bob Parsons has announced this week that he plans to give away a $1.3 million Christmas bonus to his 725 employers.
The announcement comes in the wake of a newly approved and controversial tax bill put forward by President Donald Trump and his administration, a bill which Parsons fully supports.
In a press release issued two days before Christmas, he promised the 594 employees at YAM Worldwide, who have been working for more than six months, a handsome $2,000 (£1,495) bonus. Meanwhile, those who have been at Parsons’ company for six-month or less will receive a $1,000 (£747) bonus.
Parsons’ generous Christmas bonus was his way of celebrating Trumps’ newly passed GOP tax plan on Wednesday, a bill which, as mentioned before, he was fully behind.
Speaking to Forbes, Parsons says:
The passage of the tax credit is a catalyst for explosive economic growth. On a massive scale, the lowered federal tax burden on businesses will increase investment, entrepreneurship and corporate philanthropy.
I’ve always believed in sharing good news and have decided to celebrate the tax plan by giving back to my staff.
The controversial tax bill plans to cut corporate tax from 35% to 21%. This tax break is beneficial for big corporations and their wealth off owners like Parsons… and even Trump himself.
Parsons’ journey as a self-made entrepreneur began during his upbringing in inner-city Baltimore. Despite struggling in school he made a fortune creating web domain-name registrar GoDaddy – which is known for its provocative Super Bowl ads.
In 2011 he sold the majority of his stakes to a group of private equity investors and stepped down as chairman in 2014 to put his time and energy towards an array of new businesses in Arizona. He currently owns various shopping malls, motorcycle dealerships, an ad agency and a golf club.
Parsons, whose current net worth is a staggering $2.7 billion (£2bn), is an avid Trump supporter. During the election campaign, he donated $1 million (£74k) to Trump’s inaugural committee earlier this year. He has also given more than $140 million (£104m) to charity since 2011. Parsons isn’t the only billionaire feeling generous since the new tax repeal.
On Thursday fellow billionaire Frank VanderSloot, CEO of Melaleuca, an Idaho-based company which produces health supplements and eco-friendly cleaning products, announced to his 2000 American employees they would receive a bonus of $100 (£75) for each year they have worked at his company. He then challenged other companies in his state to do the same.
Naturally several large companies came out in favour of the new tax bill including tech-giants – and net neutrality opposers – AT&T and Comcast. Both companies have also pledged to hand out bonuses worth $1,000 (£750) to their 200,000 and 100,000 employees, respectively.
Furthermore, Comcast also claimed they would be spending more than $50 billion in the next five years on infrastructure. Fifth Third Bank told their 13,500 employees they would both raise the minimum hourly wage to $15 (£11) for all employees, as well as a $1,000 bonus.
While these grand gestures are nice, and a thoughtful recognition towards the hard work their employers do – the new GOP tax bill still benefits the wealthy and leaves those on a lower income paying the rest of the debt the United States government finds itself in.