Nike, FedEx focused by progressive group calling for increased company taxes
A FedEx worker masses up deliveries in San Francisco.
A progressive group pushing Congress to lift the company tax charge is launching an advert marketing campaign concentrating on FedEx and Nike, two massive American firms with gentle federal tax payments.
Tax March, which held dozens of demonstrations in 2017 calling on former President Donald Trump to launch his tax returns, plans to launch adverts concentrating on FedEx on Tuesday. The TV adverts will air in Washington, D.C., and in Memphis, Tenn., the place FedEx is headquartered.
A report by the Institute on Taxation and Financial Coverage says FedEx “zeroed out its federal earnings tax on $1.2 billion of U.S. pretax earnings in 2020 and obtained a rebate of $230 million.” The report says the dearth of funds in taxes by some firms is probably going linked to historic tax breaks in addition to Trump’s 2017 tax reform plan and sure components of the coronavirus aid invoice referred to as the CARES Act.
Tax March additionally plans to focus on Nike with a newspaper advert subsequent week within the shoe big’s residence state of Oregon, in response to Dana Bye, the marketing campaign director for the group. She stated the newspaper advert could have the same message to the TV spot specializing in FedEx.
The Institute on Taxation and Financial Coverage stated the Nike “did not pay a dime of federal earnings tax on virtually $2.9 billion of U.S. pretax earnings final yr, as a substitute having fun with a $109 million tax rebate.”
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Representatives for Nike an FedEx did not reply to CNBC’s request for remark earlier than this story was revealed.
President Joe Biden has stated he desires to lift the company tax charge to twenty-eight% to assist pay for his $2 trillion infrastructure reform package deal. He has since stated that he is prepared to negotiate on the potential company tax hike as average Democrats equivalent to Sen. Joe Manchin, D-W.Va. have come out to push again on elevating the speed to twenty-eight%.
Bye stated that the marketing campaign as a complete will price virtually $500,000. It can additionally embody digital adverts on Fb and different platforms.
FedEx lately advised CNBC that they had been in opposition to elevating company taxes as option to pay for Biden’s infrastructure plan. Advocacy teams such because the Chamber of Commerce and the Enterprise Roundtable have additionally opposed the thought of elevating the company tax charge as a option to pay for infrastructure.
“I feel the most important assertion we are attempting to make via this marketing campaign is that we will not let company tax dodgers like FedEx drive the controversy on taxes,” Bye stated.
Tax March is a venture of the Sixteen Thirty Fund, a darkish cash 501(c)(4) group that contributed simply over $60 million to Democratic aligned teams throughout the 2020 election, together with thousands and thousands to tremendous PACs backing Biden, in response to knowledge from the nonpartisan Heart for Responsive Politics.
The marketing campaign by Tax March is without doubt one of the first to tackle firms since Biden turned president. It additionally comes as firms are underneath stress to answer new voting legal guidelines equivalent to these lately handed in Georgia.
The Tax March TV advert, first reviewed by CNBC, takes intention at FedEx as considered one of a number of firms that paid little to no federal company earnings taxes lately.
“Inform Congress: it is time to put the folks first,” a voiceover on the FedEx advert says. “Make firms like FedEx pay their fare share,” it goes on to say.
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