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February 17, 2013

How Facebook Made a Billion Dollars, Paid No Taxes and Expects a Huge Refund

By Sheila Samples

It's good to be a corporation in America. Despite making $1.1 billion after going public last year, Facebook didn't pay a dime in state or federal income taxes in 2012. Instead, thanks to the social media company's use of a single tax break--the tax deductibility of executive stock options--it anticipates getting a massive refund from the government totaling $429 million. Although Facebook serves as a useful example of what's wrong with the American tax code, it should be noted that it is hardly the only corporation taking advantage of, and profiting from, the stock option tax break.

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It's good to be a corporation in America. Despite making $1.1 billion after going public last year, Facebook didn't pay a dime in state or federal income taxes in 2012. Instead, thanks to the social media company's use of a single tax break--the tax deductibility of executive stock options--it anticipates getting a massive refund from the government totaling $429 million. Although Facebook serves as a useful example of what's wrong with the American tax code, it should be noted that it is hardly the only corporation taking advantage of, and profiting from, the stock option tax break.



Submitters Website: http://sheilastuff.blogspot.com

Submitters Bio:

Sheila Samples is an Oklahoma writer and a former civilian US Army Public Information Officer. She is a Managing Editor for OpEd News, and a regular contributor for a variety of Internet sites.

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