Lovely. There is something really wrong in my mind with the notion that profitable corporations need not contribute to the country whose systems and freedoms contributed to the ability to build their successes...
Facebook, Inc.s upcoming initial public stock offering (IPO) paperwork reveals that it plans to wipe out all of the company's federal and state income tax obligations for 2012 and actually generate a half billion dollar tax refund. As part of the plan, Facebook co-founder and controlling stockholder, Mark Zuckerberg can expect a $2.8 billion after tax cash windfall....
...When, as Facebook expects, the 187 million stock options are cashed in this year, Facebook will get $7.5 billion in tax deductions (which will reduce the company's federal and state taxes by $3 billion). According to Facebook, these tax deductions should exceed the company's U.S. taxable 2012 income and result in a net operating loss (NOL) that can then be carried back to the preceding two years to offset its past taxes, resulting in a refund of up to $500 million.
Senator Carl Levin, who has proposed to limit the stock option loophole, told the New York Times, "Facebook may not pay any corporate income taxes on its profits for a generation. When profitable corporations can use the stock option tax deduction to pay zero corporate income taxes for years on end, average taxpayers are forced to pick up the tax burden. It isn't right, and we can't afford it."
Yeah, not right. Not right at all.