ThinkProgress cites a new report from Citizens for Tax Justice that shows that not only did Facebook not pay any state or federal income taxes last year, it actually got almost half a billion dollars back from the federal government by using a tax loophole while paying their executives huge amounts of money.
Earlier this month, the Facebook Inc. released its first “10-K” annual financial report since going public last year. Hidden in the report’s footnotes is an amazing admission: despite $1.1 billion in U.S. profits in 2012, Facebook did not pay even a dime in federal and state income taxes.
Instead, Facebook says it will receive net tax refunds totaling $429 million.
Facebook’s income tax refunds stem from the company’s use of a single tax break, the tax deductibility of executive stock options. That tax break reduced Facebook’s federal and state income taxes by $1,033 million in 2012, including refunds of earlier years’ taxes of $451 million.
And it will be able to keep doing this for another $3 billion in tax deductions in in future years. A billion in profit and taxpayers are giving them money back instead of collecting taxes. Welcome to the oligarchy.
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