CVS to Invest Tax Cut In Worker Wages And Reducing Aetna Deal's Debt
CVS Health confirms it will use more than $1 billion in benefits from a new corporate tax cut to boost wages and benefits for workers and slash debt from its purchase of Aetna, states Forbes (Feb. 8, Japsen). The drugstore retailer is gaining $1.2 billion in overall annual tax savings from the U.S. Tax Cuts and Jobs Act passed in late 2017 by Congress and signed into law by President Trump. CVS is set to use $425 million annually to increase the starting wages for hourly workers to $11 an hour, as well as freeze employee health premiums for a year and launch a new parental leave program. CVS' annualized tax benefit will also be directed toward "data analytics, care management solutions and store service offering pilots to improve health outcomes and lower costs for patients, as well as on debt reduction related to its planned acquisition of Aetna," a company statement read.
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