Facebook paid no taxes despite record profits
Despite earning more than $1 billion in profits last year, social media juggernaut Facebook paid zilch when it came to federal and state taxes in 2012.
In fact, the website will actually be getting a refund totaling $429 million thanks to a tax reduction for executive stock options.
In the coming years, Facebook will continue to get monster tax breaks, totaling about $3 billion.
“The employees cash in stock options, and at that point there is tax deduction for the company,” Robert McIntyre, of watchdog group Citizens for Tax Justice, said in an interview with Fox News Channel. “Because even though it doesn’t cost Facebook a nickel, the government treats it as wages and they get a deduction for it. And usually it doesn’t wipe out companies whole tax bill, although many companies get big breaks from it.”
Link to the rest of the story: Facebook paid no taxes despite record profits | Fox News
Wow, there should be a law! Whoops, there is and Facebook is taking advantage of it and laughing all the way to the bank.
Looks that way.
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