CVS Boards the Trump Train, Hikes Wages After Tax Cuts
One of the most well-recognized retail pharmacy outlets in America announced this week that it plans to spike its starting wage and launch a new paid parental leave program in April.
In explaining the motivation behind this unexpected generosity, the retailer pointed to the tax reform bill President Donald Trump signed into law in late 2017.
CVS Health, a nationwide conglomerate responsible for the CVS Pharmacy that lines the corner of practically every town in the United States, revealed in a news brief Thursday that it seeks to “enable employees to share in the tax savings created by the U.S. Tax Cuts and Jobs Act.”
CVS’ new plan specifically calls for boosting its starting pay for hourly employees from $9 an hour to $11 per hour, not increasing its employees’ health care premiums for the current year and launching a paid parental leave program.
“Effective April 1, 2018, full-time employees who welcome a new child into their home can take up to four weeks away from work at 100% of their pay to ensure the newest addition to their family gets off to a strong start in life,” CVS announced.
CVS’ customers are also slated to benefit, as the retailer plans to use its tax savings to fund “investments in data analytics, care management solutions and store service offering pilots to improve health outcomes and lower costs for patients.”
“As part of our ongoing commitment to the patients, customers and communities we serve, we said that we would invest our tax savings back into our business, and that’s exactly what we’re doing,” said CVS Health president and CEO Larry Merlo.
“Today, we’re building on the investments we’ve been making in our employees, in their wages, benefits and career development. It’s our employees who drive our performance and we appreciate how hard they work every day to deliver on our purpose of helping people on their path to better health.”
According to an updated list maintained by the Americans for Tax Reform, CVS is one of over 330 companies that responded to Trump’s tax bill by raising wages, doling out bonuses, launching parental leave programs and/or improving their employees’ 401k plans.
The list also includes the likes of American Airlines, Best Buy, Charter Communications, FirstBank, Home Depot, Honeywell, Walmart and the Walt Disney Company.
Millions of employees throughout America are slated to benefit from these generous handouts, including the 240,000 who work at CVS.
Despite the never-ending stream of positive news for American workers, the Democrat Party continues to criticize the president’s tax reform bill, characterizing the wage increases and bonuses as mere “crumbs.”
Democrats such as House Minority Leader Nancy Pelosi have likewise accused the bill of being nothing but a handout to the rich and wealthy.
Yet polls show support for the bill rising dramatically: “Although 26 percent of Americans approved of the package in mid-December, as lawmakers were putting the final touches on it, support in the latest poll rose to 44 percent,” The Washington Post reported in early February.
The president’s own approval rating has likewise spiked from a 37 percent low in December to a high of 42.3 percent in early February.
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