Congressman Tom Reed (R-NY 23rd District) touted the new tax reform bill at the Chemung CVS distribution facility on Thursday.
Reed is a big supporter of the bill and met with employees directly impacted.
A representative from the company said as a result, the starting wage will increase to $11 an hour. Health care premiums for employees will also remain at the current rate despite medical and prescription costs increasing five percent. Additionally, a new paid parental leave program will allow workers four weeks off to care for a new baby at full pay.
The bump in the starting hourly wage comes out to less than $23,000 dollars a year. Multiple reports have shown that individuals making less than $25,000 dollars a year will see a tax cut of $60 dollars or less for the year.
The congressman says any increase is something he will celebrate.
“Even if it’s $60 dollars, I don’t know why you would want to sneeze at that and say that’s a bad thing,” Reed said. “That’s $60 dollars that individual earned that they can keep rather than adding it to the coffers of Washington D.C. and that endless bureaucracy that’s there, so we’re going to continue to be a voice for it, and what we’re seeing though, it’s not just those dollars. It’s the overall economic impact we’re seeing that is positive for so many people.”
Reed also said since the base salary increased, wages for other employees will go up too. Additionally, he mentioned he saw a report where the average taxpayer in the 23rd district will save $1,600 with the bill.
On December 31, minimum wage will hike up to $11.10. No word on if the company will pay more than that to stay ahead of the game.