Trump Tax Cut Leads To Bonuses at Citizens Bank

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The Trump tax cut is bringing 12,500 Citizens Bank employees an extra $1,000, the company announced.

The one-time bonus will go to employees “below a certain compensation threshold,” covering about 70 percent of the company’s employees, Citizens Financial Group Inc. said in a written statement.

U.S. corporate taxes are dropping in 2018 from 35 percent to 21 percent, thanks to the new tax bill that the Republican-led Congress passed and President Donald Trump signed into law.

Citizens Financial Group also plans to donate an additional $10 million to the company’s charitable foundation, which encourages financial literacy, supports below-market-rate housing, fights hunger, and supports economic development.

“Corporate tax reform provides us with an opportunity to recognize the role our colleagues have played in delivering better results for customers and shareholders, and to positively impact the communities where we live, work and play,” said Bruce Van Saun, chairman and chief executive officer of Citizens Financial Group, in a written statement.

Citizens, headquartered in Providence, Rhode Island, operates about 1,200 branches in 11 states, including New England, the mid-Atlantic, and the Midwest.