I generally look to Brookings for insight and analysis. Not in this article, unfortunately.
When I read THIS…..
Indeed, Walmart announced a pay raise and bonuses for all of its workers Thursday to a minimum of $11 an hour, attributing the increase directly to the bill’s corporate tax cut.
….. I immediately went to Wal Mart’s press release regarding the wage increases, because I did not recall them “attributing the increase directly” to the new tax bill.
Well, I was right. They didn’t.
The press release refers obliquely to corporate tax reform, but never ties the two together. Doug McMillian (WMT CEO) in fact stated this:
He added, “We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders.
Does that sound like he was “directly tying” the wage increase to tax reform? And later in the article:
While the new law will create some financial benefit for the company, Walmart is early in the process of assessing potential additional investments.
So, quite obviously, what Wal Mart is saying is that they don’t know yet how tax reform will affect their business, further disputing the contention in the above article.
Also: I can see how the narrative is being developed, here. Because some GOP lawmakers unwisely claimed that tax reform would directly cause increases in wages, contrarians now have their knives out to dispute the notion that tax reform might actually have caused anyone to raise their wages.
This ignores the key reason why corporate tax reform was executed by the GOP, and why both President Obama and Charles Schumer ALSO wanted to execute corporate tax reform prior to the current administration; that being that our system of corporate taxation, created in the 1930’s, was wholly inadequate to address the global economy we now find ourselves in, and was actually putting American corporations and American workers at a competitive disadvantage to foreign competition.
Let’s keep the eye on the prize, here. If somebody gets a bonus or a wage hike because of corporate tax reform, that’s great…..but that’s not the primary reason the tax code was reformed.