The New York Times was unmoved by the “colorful” response of the chairman and CEO of FedEx over a report that the company paid no federal taxes in 2018.
The newspaper stood by its report after FedEx CEO Frederick Smith issued a challenge to its business editor and publisher following the “distorted and factually incorrect” story published on Sunday.
FedEx’s CEO just publicly executed The NY Times https://t.co/yfwU7AwmT3 pic.twitter.com/ewjRPquorz
— Bryan Beal ? (@bryanrbeal) November 18, 2019
The front-page New York Times story reported that FedEx owed more than $1.5 billion in taxes in 2017 but a year later, that figure had dropped to zero thanks to the President Trump’s tax cut “for which the company had lobbied hard.”
Officials from the Memphis-based delivery company told The Times that FedEx had “paid $2 billion in total federal income taxes over the past 10 years.”
Smith slammed the report later on Sunday in a blistering rebuttal as he issued his challenge, blasting The Times for ignoring the “$6 billion of capital” the company reportedly “invested in the U.S. economy” 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, D.C. with me and the FedEx corporate vice president of tax,” Smith said in a statement.
“Pertinent to this outrageous distortion of the truth is the fact that unlike FedEx, The New York Times paid zero federal income tax in 2017 on earnings of $111 million, and only $30 million in 2018 — 18% of their pretax book income,” Smith argued. “Also in 2018 The New York Times cut their capital investments nearly in half to $57 million, which equates to a rounding error when compared to the $6 billion of capital that FedEx invested in the U.S. economy during that same year.”
Smith’s challenge was to a debate on taxes 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.”
But the newspaper was not backing down from its reporting, calling Smith’s debate invite a “stunt.”
“FedEx’s colorful response does not challenge a single fact in our story. We’re confident in the accuracy of our reporting,” New York Times spokeswoman Danielle Rhoades Ha told business magazine Fast Company in an email. “FedEx’s invitation is clearly a stunt and an effort to distract from the findings of our story.”
Fox Business’ Charles Payne noted how Smith turned the criticism back on The Times.
“Pot, meet kettle,” the host of “Making Money with Charles Payne” quipped on “Fox & Friends” on Monday, calling out the difference between the newspaper’s reported $118 million invested in the U.S. economy and the $6 billion by FedEx.
(Video: Fox News)
Payne invited the debate to be held on his show, noting how Smith has “always been an economic hero of mine.”
Veteran cable TV news host Greta Van Susteren reacted to the challenge by offering to moderate the debate.
And I volunteer to moderate a fair debate between @nytimes and @FedEx ; I will travel to where the debate will be held @FedExPolicy https://t.co/BUiW9sbqVR
— Greta Van Susteren (@greta) November 18, 2019
While The New York Times dismissed Smith’s reprimand, plenty of others on social media cheered on the FedEx CEO for dressing down the left-wing publication.
@FedEx, STUD move! Awesome job.
— Edmund S Robson (@EdmundSRobson) November 18, 2019
Oh my god. @nytimes just got annihilated.
— Dave (@bourbon_rox) November 18, 2019
Great to see a company CEO offer to discuss policy and challenge this hit squad rag to be accountable for their reports.
— Tony Gunn (@bnpllc) November 18, 2019
At last, a great US business leader tells it like it is. Kudos to @FedEx & Fred Smith & shame on @nytimes
— Michael Skiles (@MichaelHSkiles) November 18, 2019
And @FedEx actually serves a purpose in this world. If @nytimes disappeared tomorrow, no one would care or notice
— Team Brissett ???? (@E_G_T_B56) November 18, 2019
What @FedEx just did to @nytimes pic.twitter.com/8T3HaJXokj
— Raiz (@kerlyfryz) November 18, 2019
Fedex has always been more reliable. They should go into the news business.
— Dave Cooperman (@comicdavecooper) November 18, 2019
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Originally from New York, Powers graduated from New York University and eventually made her way to sunny South Florida where she has been writing for the BizPacReview team since 2015.
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