COLUMBIA (WACH) â?? The company thatâ??s a â??friendâ?? to just about anyone is accused of not playing fair.
The social media site Facebook earned more than a $1 Billion in profits according to a 2013 report, and wasnâ??t taxed on any of it. Instead, millions of tax dollars from the Federal Government funded a rebate for the company instead.
Apparently, a major loophole is to blame for freeing Facebook from having to payâ??like many other corporations, especially in the tech field.
The Institute on Taxation and Economic Policy reports that these large companies like Facebook pay their executives in stock options instead of cash, which doesnâ??t cost the company a dime. Yet they can write it off as an expense.
"The tax law allows these companies to pretend that this fictitious expense is a real expense." Said ITEP Executive Director Matt Gardner.
Facebook profited more than a billion dollars in 2013, and since theyâ??re not paying, it could cost us.
"The bottom line for middle income Americans is that every dollar of tax that a company like Facebook doesn't pay is a dollar that the rest of us are going to have to make up.. either through higher taxes on small businesses on middle income families or less spending on transportation, healthcare or other services we so desperately need." Said Gardner. , "In a challenging fiscal environment, we should be looking for ways that all Americans can agree on to close loopholes and make sure all Americans pay their fair share."
Not only did the company get away with paying nothing in 2013, it also got a $429 million dollar tax rebate.
There is an obvious fix with legislation in the senate that if passed, could close that loophole. All it needs is support.