More Winning: Trump’s Tax Cuts Leading Walgreens to Spend $150 Million on Increasing Employee Wages

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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.

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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.

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“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.

Watch the video below:

According to Walgreens, the company employs over 240,000 people and tends to nearly 8 million customers daily.

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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.

Robert Galbraith/Reuters

“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.

What do you think?

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Kelly Stevenson
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Kelly Stevenson

Someone should have factchecked this article. In the Walgreens Press release in March “Walgreens will boost its hourly workers’ wages by $100 million a year after similar moves by competitors, company leaders announced Wednesday. … Walgreens had already planned to raise wages before the tax changes – though those changes didn’t hurt the company’s plan, Gourlay said.Mar 28, 2018” Then This month: “We will be making select incremental investments of around $150 million in fiscal 2019, mainly in store wages, but also to fuel our new community health care initiatives, and you can view these in light of the favorable… Read more »

Lenny Stebulis
Guest

This must be part of that horrible result of the Trump Tax Cuts that the Democrats are campaigning on that complain about the largest tax cuts going to corporations.
Without which, companies like Walgreens and Amazon wouldn’t likely have the resources to up their minimum wage.
But hey, they must be right because it’s election season and NO Democrats voted to give ANYBODY a tax cut…

Anonymous
Guest
Anonymous

$150M spread out across 240k employees comes out to a $0.30/hr raise. $12.00 a week, before taxes. Let’s not break out the balloons yet…

banstan
Member

Yeppers. More “crumbs”

1ntrepid
Guest
1ntrepid

This is the kind of result that was intended to result from the tax cut, but it is still atypical. Amazon may be increasing the hourly wage, but they are reneging on other employee bonuses and incentives. They still need to pee in bottles.

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