Sunday, 17th February 2013
FACEBOOK NOT ONLY AVOIDS PAYING TAX IT WILL GET A REFUND – Amazingly enough, and to the dismay of the average U.S taxpayer, Facebook will not have to pay State or Federal Tax on its $1.1 billion in pre-tax profits.
Now this may sound almost unbelievable to the average U.S taxpayer but in fact it gets worse as Facebook will receive a massive $460 million in a Tax Refund.
The U.S economy is not in a good shape. Its national debt runs into trillions of dollars and this continues to grow as the U.S further engages in conflicts around the world, such as in Afghanistan, Iraq and other countries. Many Americans are now asking the question, ‘When will the American Government start taking care of the American people?’
From the news reports that I have read, regarding the tax avoidance and tax refund Facebook is about to receive this is in fact just the tip of the iceberg. Over the next few years it is likely that Facebook will be able to avoid paying any tax for profits of up to $3.5 billion, due to some very clever accounting and tax break laws for large corporations.
The comments on the news boards are not to be unexpected, where many are saying that it’s the rich that control congress and they do so, not for the good of the nation, but for the sole purpose of bloating their bank accounts.
The American public does have to bear some of the responsibility. It is after all their votes that make or break a Presidency and the election of other officials. The real problem with the American system of Government lies within the Lobbyists, who freely pay huge sums of money in order to persuade congressmen and senators to pass laws; not in the favor of the people but rather those looking to directly benefit from a change in the law or indeed the introduction of a new law.
While many Americans are enraged over the news of Facebook avoiding tax you have to realize that it is the responsibility of the company to its shareholders to reduce costs. Many businesses are of the mindset that it is better to avoid tax and use the money to grow the company which results in the employment of more people than to hand it over to the Government that will simply squander the money.
Note carefully the part above about company growth and the employment of others. Facebook does in fact pay tax via the people that it employs. Corporations do need the tax breaks in order to fund further growth and the tax laws are setup in such a way so that anyone with knowledge of creative accounting can avoid State or Federal tax.