The parent company of The New York Times saw its income tax bill fall by more than 50 percent in the first quarter of 2018 compared to in 2017, “primarily” due to the Trump administration’s tax plan.
The boon comes despite The Times’ efforts in 2017 to derail tax reform legislation, which President Donald Trump signed into law on Dec. 22.
The Times’ published an editorial on Nov. 28 calling on the Senate to vote against the plan. The company also infamously lobbied heavily against the bill on Twitter.
“This morning, The New York Times Editorial Board is tweeting here to urge the Senate to reject a tax bill that hurts the middle class & the nation’s fiscal health,” The Times tweeted on Nov. 29, using the hashtag “#thetaxbillhurts.”
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This morning, The New York Times Editorial Board is tweeting here to urge the Senate to reject a tax bill that hurts the middle class & the nation's fiscal health. #thetaxbillhurts
— New York Times Opinion (@nytopinion) November 29, 2017
The newspaper directed readers to contact Republican senators who were on the fence about the bill. In a series of tweets, The Times’ Twitter account listed the phone numbers of several GOP senators, including Maine Sen. Susan Collins and Arizona Sen. Jeff Flake.
The Senate voted 51-48 along part lines in favor of the bill, which slashed tax rates for all income brackets. The bill also cut the top corporate tax rate from 35 percent to 21 percent.
The New York Times Company said on Thursday that its income tax bill was cut in half, from $10.7 million in the first quarter of 2017 to $5.3 million in the first quarter of this year.
“The Company had income tax expense of $5.3 million in the first quarter of 2018 compared with $10.7 million in the first quarter of 2017. The decrease was primarily due to a reduction in the U.S. federal corporate income tax rate which took effect in 2018, and a tax benefit from stock-based compensation,” reads the company’s earnings announcement.
The New York Times Company saw its operating profit increase by $6.3 million. Though the savings from the tax cuts made up the bulk of that profit surge, the company said the increase was “principally driven by strong digital subscription revenues.”
“Operating profit rose to $34.1 million in the first quarter of 2018 from $27.8 million in the same period of 2017, principally driven by strong digital subscription revenues, which were partially offset by higher operating costs and lower print advertising revenues,” reads the earnings announcement.
Whether its tax savings has changed The Times’ view of the Trump tax plan is unclear. The newspaper did not respond to a request for comment.
Author: Michael
Handsome Devil..... and Smart too.
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