How is Facebook posting this mega tax break on its timeline? Well, “it’s complicated.” But basically, when the company goes public tomorrow, a major corporate tax loophole will give Facebook a $3 billion dollar tax break.
Yes, that’s right, $3 billion — even more than what J.P. Morgan just lost through reckless banking. Even though Facebook is extremely profitable, this loophole will zero out its entire tax bill this year, and likely for years to come.
This loophole should be big news. But it isn’t. Will you help us use Facebook to spread the word? Click here to share this action.
Facebook’s tax dodging will take billions of dollars that should be public funding for schools and hospitals and parks and public safety — and turn them into private pocket-lining for the company and its new shareholders.
We’re talking big money here. For every dollar in stock options its employees take (which cost the company nothing to give out), Facebook can take a dollar of “net operating loss” tax deductions. So how much are taxpayers losing in this deal? At least $3 billion this year alone, plus hundreds of millions in retroactive refunds. That money could be used to hire 75,000 teachers. Or to write down nearly a hundred thousand underwater mortgages. Or to restore the “Full-Year Pell” grant program cut last year.
Sure, it’s legal. But it shouldn’t be. Michigan Senator Carl Levin has proposed a bill to close the Facebook loophole. But without a major push, it isn’t going anywhere.
Like Warren Buffett, billionaire Zuckerberg has told President Obama he agrees that the mega-rich should pay more in taxes. So we’re calling on Mark Zuckerberg to follow through and ask Congress and President Obama to close the Facebook loophole today so that Facebook — and every big company that goes public — pays its fair share.
And then please help spread the word by sharing this action — you know where.
Thanks for all you do.
-Dan Cantor, WFP