Schultz Blasts GOP Tax Cuts, But Starbucks’ Touted Employee Benefits in January Schultz Blasts GOP Tax Cuts, But Starbucks’ Touted Employee Benefits in January – NTK Network

Schultz Blasts GOP Tax Cuts, But Starbucks’ Touted Employee Benefits in January

"I was very disappointed in because corporate America did not need a tax cut to 21 percent when we could have done so much more for the people of the country,"

By NTK Staff | 06.05.2018 @11:22am

Outgoing Starbucks Chairman Howard Schultz made his first political gaffe of the 2020 presidential campaign season when he blasted the Republican tax cuts for not doing more to help hard working Americans, despite the fact that 150,000 Starbucks employees have benefited from the tax cuts, according to the company.

Schultz appeared on CNBC’s “Squawk Box” on Tuesday, to discuss why he was stepping down as Starbucks’ chairman, which has caused speculation that Schultz is preparing for a possible 2020 presidential campaign.

CNBC’s Andrew Ross Sorkin asked Schultz what he plans to do over the next 12 months in terms of public service and his plans for the future.

Schultz explained that he has been engaged in “very important issues that are facing the country,” including tax reform.

“We have a tax policy, as you know, that we’ve talked about a year ago when I was with you, which I was very disappointed in because corporate America did not need a tax cut to 21 percent when we could have done so much more for the people of the country,” Schultz said. “Forty-five percent of the people in America don’t have $400 in their bank for a crisis.”

While Schultz blasted the Republican tax cuts during this interview, it’s worth noting that Starbucks credited the Republican tax cuts in January as the reason why its 150,000 employees would receive pay raises and stock grants in 2018.

The Associated Press reported:

“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.”

Later on in the interview, Sorkin confronted Schultz about this hypocrisy.

Schultz denied that Starbucks gave credit to the Republican tax cuts as the reason why they increased employee wages.

But here’s how the AP characterized Starbucks’ January statement:

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.

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