This is why FedEx paid no federal income taxes in 2020

[mahatmakanejeeves]

There's a paywall. Be creative.

Transportation

This is why FedEx paid no federal income taxes in 2020

By John Klyce – Reporter, Memphis Business Journal
Apr 6, 2021 Updated Apr 6, 2021, 2:55pm CDT

The national debate over taxes — and who should pay what — stems back to the country’s earliest days. Yet, while discourse on the subject is seemingly never-ending, Americans across the political spectrum typically agree on this: Most people, regardless of ideology, don’t love paying taxes.

Corporations don’t seem to love it either, and over the years, thanks to various provisions provided by Congress, America’s largest companies have become adroit at lowering amounts they must pay, with Memphis’ largest business, FedEx, among this group.

It’s important to note that FedEx does pay an array of federal, state, and local taxes. According to the Institute on Taxation and Economic Policy (ITEP), however, the delivery services giant — along with 55 other big companies, including Nike and Dish Network — paid no federal income taxes in 2020.

Actually, ITEP asserted, FedEx received a $230 million rebate, despite having a pre-tax income of $1.218 billion.

This is in part thanks to both the Tax Cuts and Jobs Act of 2017 (TCJA), which lowered the corporate tax rate from 35% to 21%, and provisions in the CARES Act, which allowed companies to carry back losses to offset profits reported in prior years, resulting in the rebate that slashed their 2020 income tax rate. A carryback is typically when a business applies a net operating loss to a prior year’s tax return, which results in a refund of taxes that had been already paid.

{snip}

[TreasonousBastard]

1. It's important to realize that these companies can, and do, pay good money for the best...

tax accountants and lawyers. Much better than the government can, or is willing to, afford.

When the tax laws are put through the Congressional sausage grinder, and the details dealt with by the bureaucrats and published in the Federal Register, the real experts get to work.

[3Hotdogs]

2. Correction: "... can and do, pay good money for the best politicians, tax accountants and lawyers."

[MichMan]

3. Didn't the CARES Act originate in the House ?

Anyone know why Speaker Pelosi wanted the tax break in there ? I assume there was a good reason for it.

and provisions in the CARES Act, which allowed companies to carry back losses to offset profits reported in prior years, resulting in the rebate that slashed their 2020 income tax rate. A carryback is typically when a business applies a net operating loss to a prior year’s tax return, which results in a refund of taxes that had been already paid.