The Times on Sunday ran a cover story, "How FedEx Cut Its Tax Bill to $ 0," stating that FedEx & # 39; s ( FDX ) work in favor of the corporate tax cut in 2017 allowed the delivery company to eliminate federal taxes the following year. History said that the tax cut did not result in increased investments by neither FedEx nor businesses overall, as Smith and other tax bill advocates promised would happen if it went ahead.
Smith issued a statement where the article was "distorted and in fact incorrect," although he did not detail what was inaccurate in the story. FedEx reported that the total income tax was $ 1
.6 billion in the fiscal year ended May 31, 2017, but it had a negative income tax bill, or a credit, of $ 219 million in the fiscal year ended May 2018. The last fiscal year was reported as income tax of $ 115 million.
Although companies that complain about critical news coverage are not uncommon, Smith's response was unique.
"I hereby challenge AG Sulzberger, editor of the New York Times and Editor of the Business Section of a public debate in Washington, DC, with me and FedEx Executive Vice President for Tax," he wrote. "The focus of the debate should be federal tax policy and the relative societal benefits of business investment and the huge intended benefits for the United States economy, especially lower and middle class workers. "
Don't expect Sulzberger or anyone else from the Times to show up for Smith's proposed debate.
[19659004] "FedEx's colorful response does not actually challenge a single fact of our story. We are confident in the accuracy of our reporting, "said Times spokesman Danielle Rhoades Ha." FedEx's invitation is clearly a stunt and an attempt to distract from the findings of our story. "
Smith's statement called also out New York Times Company ( NEW ) own tax bill, which he said showed national federal taxes paid for 2017, and $ 30 million in 2018, which he said represented 18 % of revenue that year.
It is not clear where in the Times & # 39; financial filings he deducted those numbers.The Times & # 39; annual filing shows a $ 105.9 million federal tax in 2017, and only $ 913,000 in 2018, which seems to make an even stronger point that both the Times and FedEx benefited from the company's tax cuts.
– CNN Business & # 39; Brian Stelter contributed to this report
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