WASHINGTON -- 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.The public face of its lobbying effort, which included a tax proposal of its own, was FedEx
WASHINGTON — 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.
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. FedEx’s use of its tax savings is representative of corporate America. Companies have already saved upward of $100 billion more on their taxes than analysts predicted when the law was passed. 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, according to an analysis of securities filings. More than 200 of those companies saw their effective tax rates fall by 10 points or more.
Some conservative economists and business leaders said the effects of the tax cuts were undercut by uncertainty from Trump’s trade war, which is slowing global growth and prompting companies to freeze projects. Other economists said the fizzle is predictable because high tax rates were not holding back investment.
Smith teamed up with his competitor, David Abney, chairman and chief executive of UPS, to push for a tax overhaul, including jointly writing an op-ed in The Wall Street Journal. Eight months after Congress passed the law, Trump celebrated the tax cuts by hosting Smith and other business leaders at a dinner at his Bedminster, New Jersey, golf club. He singled out Smith several times, bantering with him about a term paper that Smith had written while a student at Yale. The paper formed the basis for the creation of FedEx.
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