AT&T also plans to invest an additional $1 billion in the US after the tax bill is signed into law.
The two announcements gave at least some support to claims by Trump and fellow Republicans that their tax bill, which cuts the corporate tax rate to 21 percent from 35 percent, would lead to more investment by USA companies. The checks will be in the mail in time for the holidays if Trump finalizes the tax bill with his signature before Christmas.
The tax bill would reduce the corporate tax rate to 21% from 35% - providing a big boost for large American companies including AT&T. A person briefed on the matter said the bonuses will cost the company about $230 million.
AT&T will award some 200,000 bonuses in the wake of the Trump administration's massive tax overhaul.
"We believe tax reform is good for our USA economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners", said President and CEO Tim Sloan in a company release. "So that's pretty good", he said. The idea that the new tax cuts will necessarily pay for themselves by generating federal revenue growth is dubious; the idea that the AT&T bonuses might pay for themselves by smoothing the way for merger approval isn't.
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"Results will speak for themselves, starting very soon", Trump tweeted on Wednesday.
Boeing has also said it will invest an additional $300m.
Phone carriers are among the companies that are likely to increase their capital spending because of the bill, which allows immediate tax deductions for such investments.
Fifth Third Bancorp said it would raise its minimum hourly wage for all employees to $15, with 3,000 hourly employees benefiting from the hike.
In the 2016 US elections, Republican candidates got 62 percent of $2.7 million in donations to federal candidates from AT&T's political action committee that pools contributions from employees, according to the Center for Responsive Politics.
Trump's Justice Department shocked the business world last month by suing to block the takeover of Time Warner.