In a little over a week, Costco employees will get a pay raise, and it’s because of President Donald Trump’s tax cuts.
The wholesale retailing giant will use part of its corporate tax savings to raise upwards of 130,000 employees’ wages, according to The Seattle Times.
The pay raises — which will take effect June 11 — include increases of 25 to 50 cents per hour for hourly workers and a $1 increase for employees’ starting wages in the United States.
Tremendous investment by companies from all over the world being made in America. There has never been anything like it. Now Disney, J.P. Morgan Chase and many others. Massive Regulation Reduction and Tax Cuts are making us a powerhouse again. Long way to go! Jobs, Jobs, Jobs!
— Donald J. Trump (@realDonaldTrump) January 24, 2018
That reform included a drastic cut to the corporate income tax, lowering the rate from 35 percent to 21 percent.
According to Costco’s chief financial officer, Richard Galanti, many companies had “a desire to use some of this (tax windfall) to help employees, to share that wealth if you will, to drive their business.”
His comment echoed that of JPMorgan CEO Jamie Dimon, who said Trump’s cuts would drive higher wages.
“Competitive taxes [will lead to] more capital, more jobs, more companies investing here,” Dimon also said, according to CNBC.
According to The Seattle Times, this month’s wage increase helped Costco maintain its competitive advantage over Walmart, which also recently boosted its wages.
While Republicans welcomed the tax bill as an avenue toward economic growth, Democrats decried the legislation as a way to worsen economic inequality.
Amid news that the tax bill prompted businesses to increase workers’ benefits, House Minority Leader Nancy Pelosi (D-Calif.) notably downplayed the importance of that money.
In response, Trump welcomed her comments and predicted they would, similarly to former Democratic presidential nominee Hillary Clinton’s “deplorables” statement, benefit him.