Walgreens claimed that thanks to President Donald Trump’s tax cuts, it’s able to increase employee wages.
In fiscal 2019, in-store employees will benefit from the company’s $150 million investment to raise wages. The company will also put more toward its community health care initiatives.
Walgreens Chief Financial Officer James Kehoe announced Thursday that the investment is “in light of the favorable tax reforms in the U.S,” according to The Street.
In December 2017, the Senate approved a $1.5 trillion tax bill that included temporary tax cuts for individuals and tax breaks for corporations.
“Our plan also lowers the tax on American business from 35 percent all the way down to 21 percent. That’s probably the biggest factor in this plan,” Trump said at a Cabinet meeting in December 2017, according to CNBC.
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According to Walgreens, the company employs over 240,000 people and tends to nearly 8 million customers daily.
Another large company, Amazon, also recently pledged to raise its employees’ wage.
Amazon will double its minimum wage from $7.25 to $15 an hour starting November 1.
“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” Amazon founder and CEO Jeff Bezos said at the time. “We’re excited about this change and encourage our competitors and other large employers to join us.”
Other large companies did the same — Walmart said in January that it would raise its starting pay to $11, and Target raised it to $12 an hour, hoping to reach $15 by 2020.