President Trump's tax overhaul has helped out businesses in a major way.
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FedEx owed more than $1.5 billion in taxes in its 2017 fiscal year before the tax cut and owned nothing in the following year following the tax cut, according to the New York Times.
FedEx’s founder and chief executive, Frederick Smith lobbied big time for the tax plan, even presenting a proposal of FedEx's own.
Trump signed into law the $1.5 trillion tax cut that became his signature legislative achievement.
That move changed FedEx's tax rate from 34 percent to less than zero.
In theory, the corporate tax cut would mean more money for companies to have to invest in equipment and other assets.
A New York Times analysis of data compiled by Capital IQ showed for the most part, companies with a big tax cut, invested less.
FedEx’s financial filings show that the law has so far saved it at least $1.6 billion.
FedEx did however spend more than $2 billion on stock buybacks and dividend increases in the 2019 fiscal year, up from the prior year.
The company did increase its work force and pay increases for hourly employees.
“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 to the Times. “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.”
Companies have already saved upward of $100 billion more on their taxes than analysts predicted when the law was passed.
The law cut the corporate rate to 21 percent from 35 percent.
The U.S. economy hasn't gotten the long-term kick that the Trump administration had hoped. Economic growth rose to 2.5 percent, but in the summer, the economy grew at just 1.9 percent.