Walmart announced it will soon raise its entry-level pay from $9 to $11, a change it says will affect more than one million workers. The retailer is one of several companies that has announced raises and one-time bonuses for employees after Congress passed a tax overhaul that lowered the corporate tax rate from 35 percent to 21 percent. Companies are expected to save billions.
Republican proponents of the reform, including President Donald Trump, argued that it would encourage businesses in the United States and benefit workers. Opponents, mostly Democrats, said the new laws would benefit mostly the wealthy.
Recent retail pay raises likely stem from a combination of factors, analysts speaking with Reuters and the Chicago Tribune say: Tax savings do help companies invest more in their workers, but the U.S.'s unemployment rate has also fallen recently, putting pressure on employers to pay more to attract employees.