FedEx CEO Challenges Publisher of the New York Times to Tax Debate

FedEx CEO calls for debate over ‘distorted’ New York Times article

FedEx CEO calls for debate over ‘distorted’ New York Times article

The Times claimed that FedEx did not have to pay any federal taxes in 2018, and that the company's capital investments were less than projected, despite President Donald Trump's tax cuts.

Smith, in his statement https://about.van.fedex.com/newsroom/statement-from-frederick-w-smith-chairman-and-ceo-of-fedex-corporation, said the focus of the debate should be the federal tax policy and the relative societal benefits of business investments along with intended benefits to the economy. The story did not provide details of the alleged reduction in Fed Ex's tax bill but noted that the company paid $1.5 billion in 2017 and $2 billion over the past decade.

The CEO of FedEx challenged the publisher of The New York Times to a public debate after the paper published a story he asserted got basic facts wrong.

The Times is "confident in the accuracy of our reporting" and "FedEx's colorful response does not actually challenge a single fact in our story", Ha said.

The idea behind the tax cuts was, in part, that companies paying less in taxes would spend more on investments, but the Times found that FedEx didn't do so.

The company disagreed with that assessment.

"The New York Times published a distorted and factually incorrect story on the front page of the Sunday, Nov. 17 edition concerning FedEx and our billions of dollars of tax payments and billions of dollars of investments in the US economy", CEO Frederick Smith said in a statement.

A company spokesman told the paper: "FedEx invested billions in capital items eligible for accelerated depreciation and made large contributions to our employee pension plans". "These factors have temporarily lowered our federal income tax, which was the law's intention to help grow G.D.P., create jobs and increase wages".

In an unusual move, FedEx said in a news release that the news outlet's parent, the New York Times Co., past year paid $30 million in total taxes, which FedEx said amounts to 18% of what it calls the media company's "pre-tax book income".

The paper had not officially responded to Smith's statement as of Monday morning.

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