Corporate Tax Reinvestment – Myth or Fact?

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According to the New York Times, FedEx, like much of corporate America, has not made good on its promised investment surge from President Trump’s 2017 tax cuts.

Questions:

  1. How much did FedEx owe in taxes the year before the Trump 2017 tax cuts?
  2. What does the trend show about companies with the biggest tax cuts and the average size of their capital investments?
  3. Where did most of FedEx’s tax savings go? (include amounts, if possible)
  4. Explain how FedEx’s use of its tax savings is representative of corporate America.
  5. How do you answer the question “myth or fact” after reading this article?

Source: Tankersley, J., P. Eavis, and B. Casselman. (2019). How FedEx Cut Its Tax Bill to $0. The New York Times, Nov. 17 (Retrievable online at https://www.nytimes.com/2019/11/17/business/how-fedex-cut-its-tax-bill-to-0.html)