FedEx CEO Challenges NYT Editor ‘to a Public Debate’ Over $0 Tax Article

Le·gal In·sur·rec·tion | 11/18/2019 | Mary Chastain
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On Sunday, The New York Times had an article about how FedEx managed to cut its tax bill to only $0.

FedEx CEO Frederick Smith released a statement, claiming the paper “published a distorted and factually incorrect piece” on his company.

Smith - NYT - Editor - Debate - Tax

Smith also challenged the NYT editor to a public debate on federal tax policy.

The NYT article asserted that FedEx, like most big businesses, “has not made good on its promised investment surge from President Trump’s 2017 tax cuts.”

Authors

The authors wrote:

FedEx’s financial filings show that the law has so far saved it at least $1.6 billion. Its financial filings show it owed no taxes in the 2018 fiscal year overall. Company officials said FedEx paid $2 billion in total federal income taxes over the past 10 years.

Capital - Investments - Company - Year - December

As for capital investments, the company spent less in the 2018 fiscal year than it had projected in December 2017, before the tax law passed. It spent even less in 2019. Much of its savings have gone to reward shareholders: FedEx spent more than $2 billion on stock buybacks and dividend increases in the 2019 fiscal year, up from $1.6 billion in 2018, and more than double the amount the company spent on buybacks and dividends in fiscal year 2017.

The company released this statement:

Spokesman - Effect - Tax - Cuts - Investment

A spokesman said it was unfair to judge the effect of the tax cuts on investment by looking at year-to-year changes in the company’s capital spending plans.

“FedEx invested billions in capital items eligible for accelerated depreciation and made large contributions...
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