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.
- How much did FedEx owe in taxes the year before the Trump 2017 tax cuts?
- What does the trend show about companies with the biggest tax cuts and the average size of their capital investments?
- Where did most of FedEx’s tax savings go? (include amounts, if possible)
- Explain how FedEx’s use of its tax savings is representative of corporate America.
- 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)