FedEx CEO Frederick W. Smith appeared on “Fox News Sunday with Chris Wallace” to discuss the state of the U.S. economy and advocated for policies that support investment which in turn will lead to job growth.
“It’s investment in capital equipment, in software and in infrastructure that drives the jobs in the United States,” Mr. Smith said on the program, noting that the U.S. corporate tax code “does not reward investment” which leads companies to focus on their expansion efforts elsewhere.
The all-in U.S. tax rate is 39 percent (federal and state) – the highest among all industrialized countries and significantly higher than the 25 percent average corporate rate imposed by all other OECD countries. FedEx has urged policymakers to harmonize the U.S. corporate tax rate to be in line with the rest of the industrialized world.
Mr. Smith also warned that spending on U.S. infrastructure was down to the lowest level since 1947, which also hurts economic growth. The American Society of Civil Engineers has estimated that it would take $1.72 trillion to have all surface transportation in good repair by 2020.
Overall, Mr. Smith said that the U.S. economy “is getting better,” and forecast that the U.S. gross domestic product would grow about 2.5 percent this year and 3.5 percent in 2015.
You can view the segment here.