Facebook Earns $1 Billion Profit, Pays No Taxes

david beckham and she asked at david packard dot com face but didn't know corporate income tax in twenty twelve after making more than a billion dollars in profit between two thousand eight and twenty eleven twenty six major corporations were able to pay zero better all corporate income-tax despite making a comeback to two hundred and five billion dollars in profit according to a new report from citizens for tax justice face book is now part of that club they received a four hundred and twenty nine million dollar tax rebate despite making more than a billion in profits this is based on their first ten k annual financial report since going public last year and hidden in the reports footnotes is an incredible despite one point one billion in u_s_ profits in twenty twelve they did not pay even a dime in federal and state income taxes instead they will get tax refunds of four hundred and twenty nine million dollars now how could this be if this were just battle run of the mill deductions and loopholes i would say not as outrageously despicable the reason that they're not paying any tax is because of a single tax break the deductibility of executive stock options the same stock options the which actually lean-to executives making decisions that are not in the business in in the best interest of the average person of the ninety nine percent so what we have is a situation that is simply incredible by using a tax break specifically four executive stock options face book has been able to reduce their tax liability one point zero three three billion dollars in twenty twelve including refunds of earlier year tax is a four hundred and fifty one million dollars this is just incredible were on the one hand looking to cut spending on key social programs and at the same time we're getting face book company that is doing very well and i'm perfectly fine with them doing well huge tax breaks and deductions for giving their executive stock options which leads to the type of behavior that supposedly we're trying to not encourage fine given the stock options but don't give them a tax deduction forgiving executive stock options close right i mean is it possible to provo or point of going public was uh... was for this reason i what it is that for the actual anything we can even go for that if you will allow you to how that's possible please proceed workbook republicans turnaround and then say you know what on capital gains right seat let's say you're one of these executives you get the stock options you uh... uh... uh... exercise then and then who make capital gains on the republicans then so you know what you should pay only fifteen percent capital gains on those uh... stock option gains or maybe even zero we should get rid of the capital gains tax because those have already been taxed at the corporate level turns out they haven't been turns out that you get actually a deduction for those of stock options that they haven't been tax owed so this actually goes encounters the republican argument that capital gains on exercise stock options should be taxed at a lower level because they've already been taxed know they have an impact that the corporate welfare spoke was able to deduct those amazing edged completely gretel uh... this is you know what the incredible thing is that this is happening with hundreds of companies if not more um... you wonder why were in such trouble yeah i do wonder well no or mean we don't want okay notify me more you are you everybody are yeah and by me i met us peggy a and a half