Fred Smith, FedEx CEO and Chairman invited A.G. Sulzberger, who is business editor and publisher of The New York Times, to an open debate concerning Federal tax policy, in reaction to the paper published a piece criticizing of the company’s utilization of tax breaks.
Earlier this month on 17th November, the Times issued an article claiming that FedEx did not amplify investments in fresh equipment or any other assets in the financial year subsequent President Trump’s step to sign a USD 1.5 trillion corporate tax slashing into law, despite of supporters of the tax cuts, which also includes Smith and UPS CEO, David Abney advocating that the tax slashes would perform as a stimulus for investment.
FedEx’s effective tax rate for fiscal year 2018 was “less than zero”, indicated the published article.
In a formal press release, FedEx interpreted the article as “a deliberate distortion of our company’s actions before and after tax reform” and shared its capital investments dated from the reform. Further, Fred Smith, alleged that the New York Times is not paying its own federal income-tax and bisecting its own capital investments in 2018.
“I hereby challenge A.G. Sulzberger, publisher of the New York Times and the business section editor to a public debate in Washington, DC with me and the FedEx corporate vice president of tax,” Smith said.
“The focus of the debate should be on federal tax policy and the relative societal benefits of business investments and the enormous intended benefits to the United States economy, especially lower and middle class wage earners.”
A respondent for the Times said that FedEx’s response “does not challenge a single fact in our story. We’re confident in the accuracy of our reporting.”