FedEx CEO talks Fiscal Cliff - FOX13 News, WHBQ FOX 13

FedEx CEO talks Fiscal Cliff

Posted: Updated:
MEMPHIS, Tenn. (FOX13) -

Memphis-based FedEx is considered a bellwether of how the broader economy is doing. President Barack Obama met with CEO Fred Smith Wednesday to get his thoughts on avoiding the fiscal cliff.

In an interview with CNN Money, Smith says CEOs are closely watching the negotiations between the President and Congress.

"I think most of the CEOs look at the situation in Washington with complete amazement and dismay, to be frank about it," said Smith.

Obama and leading Republicans are deadlocked on a deal to avoid going over what has been termed "The Fiscal Cliff." Unless action is taken, federal income taxes on all Americans will go up next year.

That means about $2,000 less a year for the average American family.

Obama wants to raises taxes by 1% to 2% on Americans earning more than $250,000 a year, and freeze the tax rate for everyone else.

Republicans are opposed to any tax hike, and want to see major spending cuts. Smith is worried a deal cannot be reached.

"The problem is the ideological pinings on both sides of this argument are so difficult to bridge, that it's going to be hard for them to get a deal," added Smith.

Smith says lawmakers are focusing on the wrong tax rates. He says it's corporate investments, not the rich, who spur the economy.

"There's a mythology in Washington, such as, it's small business that create all the jobs in the United States, and if you raise the rates on the top two percent, you'll kill jobs.  The reality is the vast majority of jobs in the United States are produced by capital investment and software. That's not done by small business.  It's done by big business."

Smith says go ahead and raise taxes on the very wealthy, but cut the corporate tax rate. He offered the president and congress a compromise.

"It would be to lower corporate tax rates to a territorial tax system to make the United States the best place to invest.  And then you do what you need to do for personal tax rates across the board, or at the upper end."

Powered by WorldNow

WHBQ-TV | Fox 13
485 S. Highland St.
Memphis, TN 38111

Main Station: (901) 320-1313
Newsroom: (901) 320-1340

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices