General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFacebook, The Coolest Cutest Corporate Welfare Queen Of Them All
And it found an amazing admission: despite $1.1 billion in pre-tax profits from its US operations in 2012, Facebook didnt pay any federal or state income taxes in the USin fact it will collect net tax refunds totaling $429 million.
Facebook is relying on a single tax break in our glorious corporate tax-dodge code to obtain its negative tax rate: the deductibility of executive and employee stock options. It cut Facebooks federal and state income taxes by $1.03 billion last yearbut that was just part of it.
As Facebook said in its footnote under Share-based Compensation, on page 68 of the 10-K: during the years ended December 31, 2012, 2011, and 2010, we realized tax benefits from share-based award activity of $1.03 billion, $433 million, and $115 million respectively.
Another $2.17 billion of this US tax break is carried forward. To rub it in, COO Sheryl Sandberg giddily pointed out during the earnings call that the company ended the year with a total of $5.8 billion in NOL tax loss carry forwards created by stock compensationto be used in future years.
http://www.businessinsider.com/facebook-the-coolest-cutest-corporate-welfare-queen-of-them-all-2013-2
ProfessionalLeftist
(4,982 posts)And therein lies the problem. Who writes the damn tax laws? Mostly corporations and Wall St and they write them to suit themselves at everyone else's expense.
That they "weren't doing anything illegal" is in ITSELF THE problem. These corprat-welfare-at-everyone-else's-expense laws MUST change. Before that can happen, actual human beings who vote in elections need to be put back in control of their government, instead of psychopathic greed-driven paper monsters known as corporations.
Jesus Christmas.
freshwest
(53,661 posts)Initech
(100,076 posts)lastlib
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And our tax code allows this sh*t??!?!!?
Merlot
(9,696 posts)LittleGirl
(8,287 posts)is what is wrong with this country and taxes.
BlancheSplanchnik
(20,219 posts)So what happens next? CfTJ just sits back and says "how nice for you"? Or do they bring the info to someone interested in doing something, like Senator Elizabeth Warren?
lastlib
(23,237 posts)Bernie, we need you!!
BlancheSplanchnik
(20,219 posts)msongs
(67,406 posts)joeglow3
(6,228 posts)The stock options themselves are an issue, but the taxes are being paid. This is like saying a company should not deduct salaries and aren't paying income on that piece.
lastlib
(23,237 posts)It's the built-in incentive to do this sh*t that burns me up.
Laelth
(32,017 posts)-Laelth