On Sunday, New York Times published a detailed report of FedEx’s huge federal tax reduction from $1.5 billion to $0 in just one year as a result of their aggressive Washington lobbying tactics and promises to boost capital investment.
They did all they could to push Trump and the Republicans to approve his $1.5 trillion tax cut from 2017, yet they have not fulfilled their own promises.
Now, Democratic presidential candidates, Senators Bernie Sanders and Elizabeth Warren, are speaking out against the inappropriate relationship President Donald Trump has with FedEx.
The two have made it a central focal point of the current campaign, as FedEx’s lack of taxes negatively affects the average taxpayer.
For one, Sanders and Warren drew the public’s attention to the claim made by moderate Democrats and conservatives that the U.S. can’t invest in middle-class taxpayers while simultaneously allowing enormous tax breaks to big corporations.
"We're told we can't afford to invest in the housing, health care and education our people need. Meanwhile, giant corporations are paying ZERO in federal income taxes. When we stand up to the corporate elite, we can make real change for our country," Sanders Tweeted on Sunday morning.
Also on Sunday, Warren, the Massachusetts senator and fellow Democrat running for office, agreed with Sanders on her Twitter:
"You're probably paying more in federal income taxes than a bunch of big American corporations that make billions of dollars. It's obscene. These companies love to wave the American flag, but they won't pitch in a dime to support the investments we make."
The article that was published by the Times gave a detailed report of companies like FedEx failing to follow through on their ends of the deal. FedEx, for instance, had promised to heavily invest if they received tax breaks.
"If anything, the companies that received the biggest tax cuts increased their capital investment by less, on average, than companies that got smaller cuts," the authors noted.
FedEx founder and chief executive Frederick Smith’s exact words on The Larry Kudlow Show in 2017 were that the U.S. would see a "renaissance of capital investment." FedEx certainly got their tax break, but we still haven’t seen this “renaissance” they spoke of.
Of course, FedEx has done nothing but flourish since 2017, saving over $1.6 billion. Over the last decade, FedEx has paid $2 billion in total federal income taxes. According to the company, it is unfair for others to judge them for their tax break.
"FedEx invested billions in capital items eligible for accelerated depreciation and made large contributions to our employee pension plans," the company said in a statement. "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."
Since the beginning, Sanders has had issue with Trump's failure to release his tax returns and reveal that he may have paid nothing in income federal income tax. According to Sanders, his campaign seeks to fight and bring down corruption like this.
In the lead up to Trump's first-term election, Sanders said in October 2016, "This is exactly why so many millions of Americans are frustrated. They're angry, they're disgusted, at what they see as a corrupt political system in this country."