Starbucks is the latest in a string of companies raising compensation for employees while crediting Congress’s recent tax bill. Target, Fiat-Chrysler, and Walmart have made similar announcements.
Starbucks will give employees raises and stock grants worth more than $250 million. Verizon gave workers about $2,600 in stock and Disney gave one-time bonuses of $1,000. All the company’s credited the lower corporate tax rate passed and signed last year by Republicans.
However, economists are skeptical.
Benn Steil, with the Council on Foreign Relations, says the tight labor market is the more likely cause. “And we normally see these sort of wage announcements after many months of that sort of wage acceleration because companies need to do it in order to retain employees and attract new ones.”
The retail sector in particular is at a 17-year low in unemployment.
