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Facebook “Likes” US Tax Code?

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.”

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,” the president  said in his speech on Tuesday.

Facebook executives have declined to comment to Fox News on the tax  break.

Obama’s 2008 and 2012 campaigns received a large boost from social media  sites such as Facebook, which has experts speculating why they haven’t been  singled out.

“The president certainly has a double standard when it comes to picking out  examples that help advance his policies agenda,” Curtis Dubay, a senior tax  policy analyst with conservative think tank Heritage Foundation, said to Fox  News. “He often points to oil and gas companies as taking corporate deductions  that are perfectly legal under the law. But he leaves out others like Facebook,  which is perfectly legal. But he doesn’t point them out and make them an example  the same way he does an industry like oil and gas.”

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Posted by on February 16, 2013. Filed under NY News,Slider. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.