“no question we’d see a renaissance of capital investment,” FedEx’s Smith told Kudlow 8/17 about tax-cut. “4 months later, Trump signed it. FedEx tax rate fell from 34% to less than zero. But it didn’t increase investment in new equipment, other assets.”
Let’s talk about this. (thread) In 2017, Americans were promised by large corporations that if we slashed their taxes, they’d invest it. In the plot twist of the century, it turns out they started to pocket the money instead. So yes, they lied.
How FedEx cuts it’s tax bill to $0. In 2017 the firm owed more than $1.5 billion in taxes. The next year, nothing. What changed? The Trump tax cut — for which the company had lobbied hard. Great piece via
"Data show no statistically meaningful relationship between the size of the tax cut that companies received and the investments they made. If anything, the companies that received the biggest tax cuts increased their capital investment by less."
FedEx's tax bill went from $1.5 billion to $0 in a single year. What changed? The Trump administration’s tax cut — for which the company had lobbied hard.
Under President Trump, capital investment has now grown more slowly *after* tax cuts than before. ⁦⁩ ⁦⁩ & me
$10 million in lobbying to get a 1.5 billion tax cut. Now there’s a good investment. ⁦⁩ ⁦ via
You're probably paying more in federal income taxes than a bunch of big American corporations that make billions of dollars. It's obscene. These companies love to wave the American flag, but they won’t pitch in a dime to support the investments we make.
"A New York Times analysis of data compiled by Capital IQ shows no statistically meaningful relationship between the size of the tax cut that companies and industries received and the investments they made."
Corporate America promised an investment surge after President Trump’s 2017 tax cuts for big businesses. This chart shows that didn't happen. Read our story of how one company, FedEx, cut its tax bill from $1.5 billion to $0.
Proponents of the Republican tax bill promised a big boost to corporate investment. But if anything, the companies that received the biggest tax cuts increased their capital investment by less, on average, than companies that got smaller cuts.
Trump sold his $1.5 trillion tax cuts as a spur to business investment. But companies have taken the windfall and mostly handed it to their shareholders. Important investigation from ⁦⁩ ⁦⁩ ⁦⁩ @.
If nothing else, it would mean we wouldn't have to keep reading reports like this 👇😠
"In the 2017 fiscal year, FedEx owed more than $1.5 billion in taxes. The next year, it owed nothing. What changed was the Trump administration’s tax cut — for which the company had lobbied hard."
How FedEx Cut Its Tax Bill to $0 - The New York Times “Overall business investment during Mr. Trump’s tenure has now grown more slowly since the tax cuts were passed than before.”
This is fodder for a devastating set of ads about how Trump ran as a “populist” but governed as a plutocrat
“Overall business investment during Mr. Trump’s tenure has now grown more slowly since the tax cuts were passed than before.”
The tax bill was a windfall for FedEx execs and shareholders. For workers and communities, not so much. Well reported story, and a pretty disgusting portrayal of raw greed.
NYT’s story on FedEx’s taxes. I notice that for all the bluster FedEx’s statement doesn’t identify any specific inaccuracies.
Great piece on Fedex which reduced its tax bill to zero after Trump's tax cut while slashing its capex budget - opposite of what its Ceo predicted. Fortune 500 always says tax cuts will spur higher investment. Every time proceeds go on share buybacks
FedEx cut its tax bill to $0 from over $1.5 billion after intense lobbying. But it didn’t keep its promise to use the savings to increase investment.
Thanks to Trump's tax cuts, FedEx went from owing more than $1.5 billion in taxes in FY 2017 to zero the next year. Just to put this in perspective, #OSHA's entire annual budget is just over half a billion.
How FedEx lobbied hard over the rewrite of U.S. tax law and took its tax bill from $1.5 billion to zero. via
In 2017, owed more than $1.5 billion in taxes. The next year, it owed nothing. It's one of nearly three dozen in the S&P 500 who pay no taxes or say the government owes them a refund.
'Companies that make up the S&P 500 index had an average effective tax rate of 18.1% in 2018, down from 25.9% in 2016. As a result, they have spent nearly three times as much on additional dividends and stock buybacks than on increased investment.'
’s colorful response does not actually challenge a single fact in our story. We’re confident in the accuracy of our reporting, which you can read here
Corporate America promised an investment surge after Trump’s 2017 tax cuts for big businesses It hasn’t happened But they kept the money: One company, FedEx, cut its tax bill from $1.5 billion to $0 —“We don't pay taxes. Only the little people pay taxes”
Remember how Paul Ryan promised his tax scam would spur unprecedented investment by corporations if we just cut their taxes? “Overall business investment during Trump’s tenure has now grown more slowly since the tax cuts were passed than before.”
By essentially bribing the Trump Administration. FedEx pays $0 in federal taxes. And where does their tax savings go? Spoiler alert, not to their workers with higher wages or their customers with lower prices.
It's not surprising then to see that post-TCJA, with these tax breaks tamped up and the rate lowered, Fed Ex returned to low or negative rates.
Where did the money from Trump's "tax cuts for the middle class" go? To wealthy corporations who have spent $1 trillion buying back their own stock to enrich executives and wealthy shareholders. That's not acceptable.
The Trump tax cut has been a big flop — huge giveaways to corporations, no visible rise in investment. So the critics were right, and the supporters wrong 1/
Try running FedEx without federal highways and bridges, or without Federal Aviation Administration, just to name a few things federal taxes support.
During the 2018 midterm elections, the Koch Brothers spent $20 million in ads to convince voters that the Trump corporate tax cut was good for investment and ordinary workers The reality is this
“Capital IQ data shows no statistically meaningful relationship between the size of the tax cut that companies received and the investments they made. If anything, the co’s that received the biggest tax cuts increased their capital investment by less....”
This seems like quite a discovery from , and : corporate tax cuts seemed to have little impact on capital investments. Did all the economists predict this would happen?
(Notable eggregious case from NYT this a.m.
How FedEx Cut Its Tax Bill to $0
2/ average, than companies that got smaller cuts."
“In the 2017 fiscal year, #FedEx owed more than $1.5 billion in #taxes. The next year, it owed nothing. What changed was the #Trump administration’s #taxCut — for which the company had lobbied hard.” #GOP #CorporateWelfare
Dear ⁦⁩ or ⁦, Our government has been captured. Please help.⁩
In the 2017 fiscal year, FedEx owed more than $1.5 billion in taxes. The next year, it owed nothing. What changed was the Trump administration’s tax cut — for which the...
But what about the double parking that blocks traffic? How FedEx Cut Its Tax Bill to $0 - The New York Times