Walmart Joins The Ranks Of US Firms 'Sharing US Tax Reform Benefits'

Walmart Joins The Ranks Of US Firms 'Sharing US Tax Reform Benefits'

Walmart Joins The Ranks Of US Firms 'Sharing US Tax Reform Benefits'

The world's largest private employer has announced they will raise its starting wage to $11.

"This is nothing but another public relations stunt from Walmart to distract from the reality that they are laying off thousands of workers", said Randy Parraz, a director of Making Change at Walmart.

The announcement comes the same day that Walmart confirmed it is closing 63 Sam's Club warehouse stores across the country.

Sam's Club has not said how many employees are losing their jobs. White House spokeswoman Sarah Huckabee Sanders later said she would not comment on the Sam's Club closings but that the wage increases were a sign that the tax measures "are having the impact that we had hoped".

The cash bonus will go to employees who don't benefit from the new wage increases - meaning they are already paid more than $11 an hour. According to Bloomberg, an employee who's worked at the company for 20 years or more will be eligible for that $1,000; a worker at the company between 10 and 14 years could be rewarded $400. According to the company, the changes will benefit more than a million hourly employees in the U.S. Walmart is bumping its starting wage from $10 an hour to $11, which will cost the company $300 million.

It joins dozens of companies including American Airlines and Bank of America that have announced worker bonuses following the passage of the Republican tax plan that slashed the corporate tax rate from 35 percent to 21 percent.

"Given how low unemployment is, they would have had to hike wages anyway, the tax bill just made that move easier", said Edward Jones analyst Brian Yarbrough.

Pennsylvania's minimum wage is $7.25 an hour, the same as the current federal minimum wage. The change is in addition to wage increases already planned for many US markets in the coming fiscal year.

Democrats have slammed the legislation, which also temporarily reduced tax rates for most individuals, as a giveaway to the wealthy that will widen the rich-poor income gap.

Corporations won big with the GOP tax plan, and should have more money to invest in workers.

Retailers, in general, have one of the highest average effective tax rates because a majority of their operations are in the United States.

President Donald Trump has promoted this good news from Walmart and other companies as more proof of the benefits of the "TAX CUTS & JOBS ACT!" Walmart officials said its employees will determine which associates qualify for the cash bonuses before February, "and payments will be paid as quickly as practical thereafter". Walmart also hit its strongest quarterly US sales growth in almost a decade in its third quarter, according to the Wall Street Journal. It marks the third such increase by the company since 2015. The benefit, which will be available to full-time hourly and salaried workers, will total $5,000 per child.

Walmart announced today that they will be increasing their starting wage to $11 an hour because of the recently passed tax bill. The retailer has spent about $2.7 billion to increase wages over the past few years, which has helped in improving customer service and keeping its stores clean. Salaried employees will also receive six weeks of paid parental leave. Job postings at an Amazon warehouse in OH, for example, offer a starting pay of $14.50 an hour.

Wal-Mart said that the one-time bonus will be given to all eligible full and part-time hourly US employees.

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