Costco will raise its starting wage thanks to help from the GOP tax cuts. The starting wage will rise by one dollar, to $14.00 or $14.50 per hour, depending on location. The company cited the Tax Cuts and Jobs Act — passed by the GOP congress and signed by President Donald Trump — as a factor in the raises.

As reported by the Wall Street Journal:

Costco Wholesale Corp. said Thursday it would raise its minimum wage and boost pay for 130,000 U.S. store staff, intensifying the battle for workers in a tight U.S. job market.

The retail chain, second only to Walmart Inc. in terms of U.S. sales, said it would increase its starting hourly wages by $1 to $14 or $14.50 an hour. Other hourly workers will receive raises of between 25 cents and 50 cents. The new wages take effect on June 11.

Executives said the company was using some of its savings from last year’s U.S. tax overhaul to invest in its workforce. The legislation lowered the corporate tax rate, a boon for companies like Costco with large U.S. operations.

Richard Galanti, Costco’s finance chief, estimated the annual cost of the wage increases will be between $110 million and $120 million pretax. However, he said the company expects an effective tax rate of 28% this fiscal year, compared with about 35% last year.

The Costco action has been added to Americans for Tax Reform’s national list of examples of raises, bonuses, expansions, and utility rate cuts arising from the GOP tax cuts.

Costco has 520 locations in the United States, with stores in 44 states and Puerto Rico.

See also: Thanks to GOP tax cuts, utilities are passing tax savings on to customers

See also: ATR’s national list of tax reform good news