AT&T promised to increase its capital investment by an additional $1 billion next year, contingent on the passage of a tax overhaul that would cut the corporate tax rate. The announcement came after the House of Representatives voted 227-205 (with 2 abstentions) in favor of the tax package.
“I appreciate the commitment and hard work by the House, Speaker [Paul] Ryan and Chairman [of the House Ways and Means Committee Kevin] Brady to implement tax reform that will spur economic growth in the United States,” said AT&T Chairman and CEO Randall Stephenson.
The carrier argues, “A permanent corporate tax rate of 20 percent will stimulate domestic investment and create jobs for hard-working Americans.” It would in turn accelerate its deployment of high-speed internet and wireless network improvements nationally.
The U.S. currently maintains a tax rate of nearly 39 percent, albeit with significant deductions for many corporations. Nevertheless, the rate is the highest among the United States’ peers in the Organization for Economic Cooperation and Development.
According to AT&T, it has invested more in the United States than any other public company, with every $1 billion in capital investment translating into the creation of 7,000 jobs.
The Senate narrowly approved the tax overhaul Dec. 1, moving the legislation a big step closer to becoming law.
