Waste Watch: Facebook Gets Refund Without Paying Taxes -- Erika Kurre
Updated: Wednesday, July 9 2014, 12:11 AM CDT
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Nashville, TN - The company that's a friend to just about anyone is accused of not playing fair.
Social media site Facebook earned more than a billion dollars in profits according to a 2013 report and wasn't taxed on any of it.
What's worse is millions of dollars from the federal government funded a rebate for the company instead.
Though it may be legal, it seems unfair.
A loophole in corporate tax law could end up costing taxpayers like us more money.
The Institute on Taxation and Economic Policy reports these large companies like Facebook pay their executives in stock options instead of cash which doesn't cost the company a dime yet they can write it off as an expense.
So Facebook profited more than a billion dollars in 2012 and since they're not paying, it could cost us.
But not only did the company get away with paying nothing in 2013, it also got a 429-million dollar tax rebate.
And it doesn't look like that'll change in the years to come with about 2-billion dollars of tax breaks they still haven't used to zero out profits going forward.
Right now, there is an obvious fix with legislation in the Senate that if passed, could close that loophole.
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