Democrats seize on report of FedEx's $0 tax bill to slam Trump's tax plan

Democrats are seizing on a report published by The New York Times on Sunday that found FedEx didn’t owe anything in taxes in fiscal 2018, a year after President TrumpDonald John TrumpCNN's Don Lemon explains handling of segment after Trump criticism NPR reporter after Pompeo clash: Journalists don't interview government officials to score 'political points' Lawyer says Parnas can't attend Senate trial due to ankle bracelet MORE signed off on a $1.5 trillion tax cut that sharply reduced tax rates for corporations in the country.


According to the Times, the package signed by Trump in December 2017, for which FedEx reportedly lobbied hard, spelled good news the following year for the shipping company, which would later see a 34 percent drop in its effective tax rate in fiscal 2018. Its tax rate was reportedly brought to less than zero at the time.

The Times also found that the company, which had a tax bill of more than $1.6 billion in fiscal 2017, has reportedly saved at least $1.6 billion thanks to the tax cut package.

The news was met with backlash from multiple Democrats in Congress, including Sens. Bernie SandersBernie SandersNew campaign ad goes after Sanders by mentioning heart attack Biden on whether Sanders can unify party as nominee: 'It depends' Steyer rebukes Biden for arguing with supporter he thought was Sanders voter MORE (I-Vt.) and Elizabeth WarrenElizabeth Ann WarrenBiden on whether Sanders can unify party as nominee: 'It depends' Overnight Health Care — Presented by Philip Morris International — HHS has no plans to declare emergency over coronavirus | GOP senator calls for travel ban to stop outbreak | Warren releases plan to contain infectious diseases Biden lines up high-profile surrogates to campaign in Iowa MORE (D-Mass.), both 2020 Democratic presidential contenders, as well as Sen. Jeff MerkleyJeffrey (Jeff) Alan MerkleyOvernight Defense: White House threatens to veto House Iran bills | Dems 'frustrated' after Iran briefing | Lawmakers warn US, UK intel sharing at risk after Huawei decision White House Correspondents' Association blasts State for 'punitive action' against NPR Senate Democrat demands State Department reinstate NPR reporter on Pompeo trip MORE (D-Ore.).

The findings by the Times also prompted viral criticism and reactions from a number of social media users.  

Prior to the passage of the 2017 tax cut bill, FedEx CEO and founder Frederick Smith said, “If you make the United States a better place to invest, there is no question in my mind that we would see a renaissance of capital investment.”

But amid gains following the bill’s passage, FedEx’s capital investments have seen a drop in fiscal 2018 and 2019, according to the Times.

The company pushed back on the report from the Times, however, with a spokesperson telling the paper that 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 [gross domestic product], create jobs and increase wages," the representative added.

FedEx is reportedly one of almost three dozen top U.S. corporations that saw their tax rates fall to less than or equal to zero after the 2017 tax law was passed.