The Lawrence Paper Company (LPC) will pay a special $500 bonus to each of its 300 employees and invest more than $5 million in new equipment because of the Tax Cuts and Jobs Act recently passed by the U.S. Congress and signed into law by President Donald Trump.
During staff meetings at its corrugated plants in Hutchinson, Lawrence and Fremont, Nebraska, LPC President Justin Hill, Jr. told employees the new tax law may prove to have the greatest impact on them and their families, the company and the U.S. economy than of any bill passed in the last 30 years. “Most, if not all of you are likely to see a decrease in the federal taxes withheld from your paycheck starting next month. But we believe the more significant long-term benefit to each of us will result from the lowering of tax rates on businesses,” he said. “This should free up income that can be reinvested in businesses, passed through to stockholders, or paid to employees in the form of higher wages.”
Hill said rather than being at nearly the highest rates in the world, the new U.S. federal tax rates are now competitive with the tax rates of most other countries. “This not only will make it very attractive to foreign companies to invest in the United States, but it will encourage American companies to invest in their U.S. plants and employee wages rather than sending jobs overseas. We expect to see huge amounts of cash held overseas by U.S. companies being brought back and invested in the USA,” he said.
In order to prepare the company to handle the anticipated increase in business, Hill said LPC will expand its near-capacity plant in Fremont by 60,000 square feet and invest more than $5 million in new machinery at that plant. If the Lawrence and Hutchinson plants near their capacity, LPC will evaluate whether to expand at those plants.