Facebook tax refund sparks outrage, but company did pay taxes
A recent report saying Facebook will receive $429 million in tax refunds has sparked outrage on the Web, given that the company made more than $1 billion in profits in 2012.
Facebook is getting the refund in large part because of a $1.03-billion tax break, according to the report released by Citizens for Tax Justice, a tax research and advocacy group.
That tax break was a result of stock Facebook awarded its employees in 2012, when the company went public.
The Silicon Valley company paid some “income and other employment taxes,” according to its 2012 annual earnings report. Facebook said it paid $2.86 billion to “the appropriate tax authorities.”
Facebook declined to comment on the advocacy group’s report.
The perception that Facebook paid no taxes brought forth indignation on the Web. Here are a few Twitter users’ reactions:
We can’t figure out how to fund education in the US but we’re paying Facebook a $429m tax refund. Nice. americablog.com/2013/02/facebo… — keef (@keefTV) February 17, 2013
Not only will Facebook not pay taxes for last year, they will get a $429M tax refund. So, my taxes go to Octomom and Facebook. — Enty Lawyer (@entylawyer) February 17, 2013
FAIR SHARE??? HUH, OBAMA? Facebook to pay NO tax for 2012 & will even get tax refund $429M despite $1BN profits dailymail.co.uk/news/article-2… #tcot — slone (@slone) February 17, 2013
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