Although Facebook CEO Mark Zuckerberg appeared to be firmly planted on the Democrat side of the aisle, he just made a move that leftists will certainly describe as a very “Republican” thing to do. I’m sure they’ll blame it on the fact that he’s rich and white, but no matter what they decide to blame, it’s safe to say, liberals won’t be happy about what the billionaire recently decided to do.
Facebook has laid out a recent plan to significantly alter their tax bill, leaving many stunned. Apparently, the Silicon Valley giant is going to get out of taxes, using extreme measures to cut their liability. With an estimated $4 billion in profits annually and CEO Mark Zuckerberg being rumored to be a Democrat supporter, it’s safe to say many are left dumbfounded by the move the corporation is taking to get out of “paying their fair share.”
It seems Mark Zuckerberg is singing a different tune than he was just 4 short years ago. Priming himself as the “people’s president” for the 2012 election, Barack Obama cornered Zuckerberg at a town hall-style meeting on budgetary issues at Facebook’s headquarters in California, trying to sell the idea of raising taxes on rich people. Although Zuckerberg can’t be seen in the clip, he can be heard responding, “I’m cool with that,” regarding increased taxes on the rich.
Apparently, Zuckerberg isn’t so cool with paying more taxes after all, and his company is willing to do anything it can to get out of paying as much tax as possible, including giving staff hundreds of millions of dollars in bonuses, all to decrease the tax that the corporation will pay to the government, and that’s exactly what it’s doing.
“Facebook is to award bonuses of £280 million ($396 million) to its U.K.-based staff over the next three years in a bid to offset the amount of tax it has to pay to the U.K. Treasury,” NBC News reports. “Each employee will receive an average of £775,000 ($1.1 million), which Facebook will list as a taxable expense. Each Facebook employee will receive an average of $1.1 million.”
This isn’t the first time the social media giant has done some fancy footwork to lessen the taxes it pays. Facebook is in the midst of a “very public tax restructuring in Britain” to “provide transparency to Facebook’s operations in the U.K.” Days before the bonuses to sidestep taxes were announced, Facebook came forward to say the company was changing its tax setup to no longer divert profits from its largest British advertisers through Ireland, where corporate tax is lower.
Although the company speaks of “transparency,” it has yet to release figures as to its U.K.-specific earnings. What’s worse, data recently emerged to show that the British government’s Treasury pays more to Facebook for advertising placement than it receives in taxes from the multi-billion dollar corporation. It’s easy to see why the British government is more than a little frustrated with yet another blow from the widely successful company.
While the current plans only speak to how Facebook will dodge taxes in Britain, we can only wonder what they’re doing in the US. It’s also rather important for those who think we can tax the rich to eliminate poverty to be reminded that these mega-giants aren’t going to sit back and let that happen without taking action.
One also has to ask, is this really a dirt-bag move? I’m sure the UK-staffers don’t think so right now. It’s his business, so Zuckerberg can and will spend it how he wants to, but someone might want to give the socialists, such as the Bernie Sanders supporters, a memo: You can’t take what’s not yours, and when you try, those who you are attempting to rob will figure out a way to stop you.
While your initial reaction might be to scold Facebook for finding a way to legally diminish their tax liability, they just made hundreds of people in that country quite rich, and it’s probably going to give the economy a nice boost, which means more tax revenue in the long run.