‘Facebook paid no taxes in US despite record profits last year’
Washington: Facebook paid no taxes in the US, despite earning more than one billion dollars in profits last year, a report has said.
In fact, the website will actually be getting a refund totalling 429 million dollars due to a tax reduction for executive stock options.
According to Fox News, in the coming years, Facebook will continue to get monster tax breaks, totalling about three billion dollars.
Robert McIntyre, of watchdog group Citizens for Tax Justice said that the employees cash in stock options, and at that point there is tax deduction for the company.
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, he added.
The news comes after President Obama’s State of the Union speech in which he called for such tax breaks to end.
The county would “save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and well-connected,” Obama said in his speech on Tuesday.