The NY Times Continues To Underestimate FedEx In Their Public Tax Debate
The New York Times is not giving up their battle against FedEx, in fact, they think they have the high ground, so they have continued their attack on the shipping company. They claim that FedEx was simply dodging their original accusations. But it seems they are failing to realize FedEx does not take this slander sitting down.
“FedEx’s colorful response does not actually challenge a single fact in our story. We’re confident in the accuracy of our reporting,” Times spokesperson Danielle Rhoades Ha said in a statement. “FedEx’s invitation is clearly a stunt and an effort to distract from the findings of our story.”
FedEx responded again explaining how things are.
“The New York Times article is a deliberate distortion of our company’s actions before and after-tax reform. FedEx has paid federal income tax every year, including fiscal year 2018. Following passage of the Tax Cuts and Jobs Act (TCJA), FedEx invested billions in capital items eligible for accelerated depreciation and made large contributions to our employee pension plans. These factors have temporarily lowered our federal income tax, which was the law’s intention to help grow GDP and generate investment in the U.S. The accelerated depreciation deductions are only temporary with higher depreciation and lower taxes early in the life of a new capital asset. This is then offset by lower depreciation and higher taxes later in that asset’s life. These temporary deductions FedEx received for capital investments are minimal compared to the overall impact the company has on the economy.
FedEx made extensive investments in our team members and our global network to better serve our customers following passage of the TCJA. These investments included a voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains a well-funded retirement program, more than $200 million in increased team member compensation – about two-thirds of which went to hourly team members – and more than $3 billion to significantly expand and modernize our Memphis and Indianapolis hubs through 2025.
FedEx takes pride in paying its full share of taxes and has paid almost $10 billion in total taxes in the U.S. during the last five fiscal years, contributing to tax revenues of the U.S. government. We have supported tax increases in some cases, particularly federal diesel and gasoline taxes, to fund badly-needed infrastructure in the United States. The decrease in U.S. investment over the past year is due to the slowdown in global trade which has a significant impact on the asset-intensive industrial economy, including FedEx.”
It seems The New York Times has done a lot of finger-pointing. I wonder will they now explain why they failed to pay taxes on 111 million dollars back in 2017? Or is that somehow not important…
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