Earlier this month, the Facebook Inc. released its first “10-K” annual financial report since going public last year. Hidden in the report’s footnotes is an amazing admission: despite $1.1 billion in U.S. profits in 2012, Facebook did not pay even a dime in federal and state income taxes.What value are we, as a society, getting from subsidizing (i.e., protecting it from Federal taxes) Facebook?
Instead, Facebook says it will receive net tax refunds totaling $429 million.
Friday, February 15, 2013
What's Wrong With This Picture?
Can any one explain the logic behind this to me?
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2 comments:
Here's the explanation:
http://www.ctj.org/pdf/FacebookReport.pdf
Wow: "Under current tax law, exercise of all of the [stock] options will
generate $7.5 billion in tax deductions for Facebook, which
will produce $3 billion in federal and state tax reductions for
the company." That's just... insane. Thanks for sharing.
I agree with what Senator Levin told the New York Times, “Facebook
may not pay any corporate income taxes on its profits for a
generation. When profitable corporations can use the stock
option tax deduction to pay zero corporate income taxes for
years on end, average taxpayers are forced to pick up the tax
burden. It isn't right, and we can’t afford it.”
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