Facebook made $1.1 billion in profits in 2012, paid zero corporate income tax, will get over $425 million in refunds



I do not like Facebook. I do not like Facebook with a passion. I wish I could delete my account, but we use it for sharing our Political Carnival blog posts, and we get such positive feedback (meaning people thank us) that we continue to post there.

I could even give up FB access to my family and friends, although it wouldn't be easy, which is exactly what I plan to do if and when my association with TPC, or the site itself, ceases to exist.

Why? There are so many reasons, among them the constant frustration with glitches, privacy issues, and the increasingly user-unfriendliness. Facebook used to be fun and welcoming, but now it's, well, too big to bail.

Here's another reason now! One that just broke!

FB attacked

And just when I thought I couldn't get more exasperated, this new report from Citizens for Tax Justice made me seethe all over again:

Earlier this month, the Facebook Inc. released its first “10-K” annual financial report since going public last year. Hidden in the report’s footnotes is an amazing admission: despite $1.1 billion in U.S. profits in 2012, Facebook did not pay even a dime in federal and state income taxes.

Instead, Facebook says it will receive net tax refunds totaling $429 million.

Facebook’s income tax refunds stem from the company’s use of a single tax break, the tax deductibility of executive stock options. That tax break reduced Facebook’s federal and state income taxes by $1,033 million in 2012, including refunds of earlier years’ taxes of $451 million

Think Progress notes that "this tax preference for corporations costs the U.S. about $2 billion in revenue per year."

And the wealth gap widens...

As does my dis-"like" of Facebook.