Companies Not Delivering On Tax Cut Promises

TYT Investigates exposes FedEx and UPS who claim tax cuts will open them up to hire more people. Cenk Uygur, the host of The Young Turks, breaks it down. Tell us what you think in the comment section below. Join TYT

“Fifth in a series on FedEx, UPS, and their positions on taxes and jobs

Although FedEx and UPS are actively working to bolster the coming Republican tax bill, both companies have already received millions of dollars in state tax benefits with mixed results in terms of subsequent job creation, according to dozens of filings for tax breaks reviewed by TYT. In one case discovered by TYT, UPS won a tax credit that required job creation and declined to use it.

TYT previously reported that both of these logistics industry titans, two of America’s largest employers, have invested hundreds of millions of dollars in initiatives which could undercut creation of full-time jobs—including automation, driverless vehicles and drones, a contractor-based driver model akin to Uber, and the use of part-time student labor.

Both companies already have considerable assets available for use in new hiring. UPS reported $49.6 billion in gross profits for 2016, while FedEx reported $38.3 billion for fiscal year 2017. Both companies also paid out billions more to their investors in the form of dividends and stock buybacks.

Neither FedEx nor UPS responded to questions emailed by TYT about whether the companies would expand their own headcount in response to a tax cut. But UPS CEO David Abney told the audience at a September 20 event held by the Business Roundtable—a consortium of corporate CEOs—that revamping the U.S. tax system is “about growing the American economy, creating jobs, and giving us all a chance to be competitive.” Publicly, FedEx CEO Fred Smith has only gone so far as to predict economic growth and wage hikes for blue-collar workers.”

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Hosts: Cenk Uygur

Cast: Cenk Uygur

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Young Turk (n), 1. Young progressive or insurgent member of an institution, movement, or political party. 2. A young person who rebels against authority or societal expectations.(American Heritage Dictionary)