As we approach the two-year anniversary of Senator Collins’ vote for the GOP tax bill, Maine Democrats will highlight how Senator Collins put corporate special interests ahead of hardworking Mainers in a series we’re calling the “12 Days of Corporate Tax Giveaways” 🎁💰☃️

 

Last month, FedEx made headlines for paying $0 in taxes in 2018. The New York Times reported that despite FedEx’s claims that a tax cut would spur investments, much of the company’s $1.6 billion in tax savings have gone to wealthy shareholders in the form of stock buybacks and dividend increases.

 

Senator Collins voted for the GOP tax bill that allowed FedEx to avoid paying any taxes last year, and FedEx made sure she was rewarded handsomely. FedEx is Collins’ ninth-largest contributor, and the company’s corporate PAC donated $5,000 to Collins’ Leadership PAC the month of her tax bill vote.

 

While corporations like FedEx have seen their tax bill fall to zero, tens of thousands of families in Maine have seen their tax bills go up as a result of the GOP tax law. Thanks to the bill’s marriage penalty and higher health care premiums, hardworking Mainers all over the state have been hurt by the tax bill Senator Collins supported.

 

“Senator Collins may be an excellent representative for corporate special interests but she’s letting Mainers down,” said Maine Democratic Party Executive Director Lisa Roberts. “That’s why Maine Democrats are focused on defeating Collins in 2020 and electing a Senator who puts Maine first.”

 

FedEx gave Collins $5,000 during the tax bill debate and received a $1.6 billion tax break under the Collins-backed bill

 

FedEx Corporate PAC contributed $5,000 to Collins during tax bill debate, nearly $79,000 across her career

 

11/22/17: FedEx Corporation PAC Contributed $2,500 To Dirigo PAC. [FEC, Dirigo PAC Itemized Receipts, 11/22/17]

 

12/20/17: FedEx Corporation PAC Contributed $2,500 To Dirigo PAC. [FEC, Dirigo PAC Itemized Receipts, 12/20/17]

 

2019-2020: FedEx Was Collins’ 9th Top Contributor. [Center for Responsive Politics, accessed 12/4/19]

 

2001-Present: FedEx Has Donated Nearly $79,000 To Collins. “FedEx, another company that paid no taxes last year, lobbied Congress heavily to pass the tax breaks. Their federal PAC has given Collins at least $79,000 since 2001 and hosted a birthday fundraiser for her in 2010.” [Maine Beacon, 12/4/19]

 

FedEx paid $0 taxes after the Collins-backed tax bill passes, saved at least $1.6 billion

 

HEADLINE: “How FedEx Cut Its Tax Bill To $0.” [New York Times, 11/17/19]

 

New York Times: Fedex, “Like Much Of Corporate America, Has Not Made Good On Its Promised Investment Surge From President Trump’s 2017 Tax Cuts.” “The company, like much of corporate America, has not made good on its promised investment surge from President Trump’s 2017 tax cuts.” [New York Times, 11/17/19]

 

New York Times: “In The 2017 Fiscal Year, FedEx Owed More Than $1.5 Billion In Taxes. The Next Year, It Owed Nothing. What Changed Was The Trump Administration’s Tax Cut – For Which The Company Had Lobbied Hard.” “In the 2017 fiscal year, FedEx owed more than $1.5 billion in taxes. The next year, it owed nothing. What changed was the Trump administration’s tax cut — for which the company had lobbied hard.” [New York Times, 11/17/19]

 

The Republican Tax Bill Reduced FedEx’s Tax Bill From 34% In FY2017 To Zero In FY2018. “FedEx reaped big savings, bringing its effective tax rate from 34 percent in fiscal year 2017 to less than zero in fiscal year 2018, meaning that, overall, the government technically owed it money. But it did not increase investment in new equipment and other assets in the fiscal year that followed, as Mr. Smith said businesses like his would.” [New York Times, 11/17/19]

 

The Republican Tax Bill Saved FedEx At Least $1.6 Billion. “FedEx’s financial filings show that the law has so far saved it at least $1.6 billion.” [New York Times, 11/17/19]

 

Most Of The Savings FedEx Saw From The Tax Bill Went To Stock Buybacks And Dividend Increases. “As for capital investments, the company spent less in the 2018 fiscal year than it had projected in December 2017, before the tax law passed. It spent even less in 2019. Much of its savings have gone to reward shareholders: FedEx spent more than $2 billion on stock buybacks and dividend increases in the 2019 fiscal year, up from $1.6 billion in 2018, and more than double the amount the company spent on buybacks and dividends in fiscal year 2017.” [New York Times, 11/17/19]

 

FedEx Founder Met With President Trump To Push For A Corporate Tax Cut Just Days After Trump’s Election In 2016 And Has Appeared With Trump At Official Events. “Mr. Smith, 75, a former Marine who built FedEx from a small package delivery service into a global logistics giant, was no stranger to pressing for lower taxes. He tried, without success, to get President Barack Obama to cut the corporate rate. But with Mr. Trump’s ascension, the corporate chief began a one-man campaign to convince Washington that now was the moment. He met with the president-elect at Trump Tower on Nov. 17, just days after the election, and appeared alongside the president at official events.” [New York Times, 11/17/19]

 

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