First Apple and now Starbucks . Reliably Democratic precincts in corporate America keep reporting good news for both owners and workers as a result of Republican tax reform. Now the biggest political question of 2018 is whether an economic upshift will trigger a shift in U.S. voting patterns this fall.
The Associated Press reports today:
Starbucks is giving its U.S. workers pay raises and stock grants this year, citing recent changes to the tax law.
All employees will soon be able to earn paid sick time off, and the company’s parental leave benefits will include all non-birth parents. Starbucks Corp. said Wednesday that the changes affect about 150,000 full-time, part-time, hourly and salaried employees, most of whom work as baristas or shop managers. The new benefits apply to workers at more than 8,200 company-owned stores but not at the 5,700 licensed shops like those found inside supermarkets.
Starbucks is the latest to say it’s boosting pay or benefits due to the passage of the Republican tax plan, which slashed the corporate tax rate from 35 percent to 21 percent. Walmart, for example, raised its starting hourly salary from $9 to $11 earlier this month, and also expanded its parental leave benefits.
In a press release, Starbucks adds, “These new offerings are in addition to the nearly $7 billion of capital that Starbucks will deploy to build and renovate stores, manufacturing plants and technology platforms in the U.S. over the next five years.”
On Thursday after the markets close, Starbucks will report its earnings for the quarter ended in December. “Following several disappointing quarters, there is hope that an improving retail environment may benefit Starbucks,” notes the Journal.
As the Democratic Party has moved sharply leftward in recent years, it has increasingly become the party of government and the non-profit sector. As the Journal’s Daniel Henninger has been chronicling for years, Democrats have systematically been disconnecting themselves from the private economy. Seattle-based Starbucks and the tech giants of Silicon Valley are among the notable exceptions.
Normally a stalwart outpost of cultural liberalism, Starbucks employs people who gave Hillary Clinton about fifty times as much as they gave Donald Trump in the 2016 election cycle, according to OpenSecrets.org. But will rising prosperity from the shop counter to the executive suite change political behavior? Sure it’s only money but of course money allows baristas and everyone else in our economy the freedom to pursue whatever activity or agenda they choose. CONTINUE AT SITE