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How FedEx cut the tax bill to $ 0



President Trump's tax regulation has helped businesses in an important way.

FedEx owed more than $ 1.5 billion in taxes in the 2017 fiscal year before the tax cut and owned nothing the year after the tax cut, according to the New York Times.

FedEx founder and CEO Frederick Smith spent a great deal of time on the tax plan, even presenting a FedEx proposal.

Trump signed into law the $ 1

.5 trillion tax cut that became his signature legislative achievement.

This move changed the FedEx tax rate from 34 percent to below zero.

Ticker [19659008] Security Latest Change Change%
FDX FEDEX CORPORATION 158.33 +1.65 + 1.05%

In theory The corporate tax cut would mean more money for companies to have to invest in equipment and other assets.

A New York Times analysis of data collected by Capital IQ showed, for the most part, companies with a large tax cut invested less.

FedEx financial reports show that the law has by far saved it at least $ 1.6 billion.

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However, FedEx spent more than $ 2 billion on share repurchases and dividend increases in the 2019 fiscal year, up from the previous year. [19659003] The company increased its manpower and salary increases for employees over the hours.

"FedEx invested billions in capital items that were eligible for accelerated depreciation and made major contributions to our employee pension plans," the company said in a statement to the Times. "These factors have temporarily lowered the federal income tax, which was the law's intention to help increase GDP, create jobs and raise wages."

The companies have already saved upwards of $ 100 billion more on tax than analysts predicted when the law was passed.

The law cut the enterprise rate to 21 percent from 35 percent.

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The US economy has not received the long-term kickoff that the Trump administration had hoped. Economic growth rose to 2.5 per cent, but in the summer the economy grew by only 1.9 per cent.


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