Sunday, February 17, 2013

The price of corporate welfare

More proof that the Republican conservative whine about over-taxed corporations is a lie:
It hasn’t drawn much attention, but Facebook’s first annual earnings report contains an accounting gem: a multibillion-dollar tax deduction for the cost of executive stock options and share awards.

Even though Facebook (FB) reported $1.1 billion in pre-tax profits from U.S. operations in 2012, it will probably pay zero federal and state taxes—and even receive a federal tax refund of about $429 million—according to a Feb. 14 statement from Citizens for Tax Justice.
It doesn't matter what the official tax rate is, the biggest, most profitable mega-corporations don't pay that rate. In fact, most mega-corps pay no taxes at all.

How do they do it? Hire an army of accountants to game the tax code. Immoral sure, yet all very legal. But we can't possibly close those loopholes because, job creators! Thus we must starve granny because keeping the government's promise to the olds and taking care of the poors is bad. Give those deadbeats a crust of bread and next thing you know they expect free cheese too. They're eating up the profits. Can't have that. [photo via Mother Jones]

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