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Zuckerberg could qualify for EITC...

Craig

Senator
Supporting Member
An easy to follow tale of how the tax code benefits the wealthiest...and screws the little guy.


The right-wing has been lauding Facebook co-founder Eduardo Saverin for his decision to renounce his U.S. citizenship in order to avoid taxes. But he isn’t the only one who’s going to slash his tax bill in the wake of Facebook’s upcoming initial public offering: both CEO Mark Zuckerberg and the company itself will lower their tax bill for years to come....

...he may then never pay a dime of taxes on the rest of his Facebook wealth. “Instead, he can simply use his stock as collateral to borrow against his tremendous wealth and avoid all tax,” the Times reported...

...“When profitable corporations can use the stock option tax deduction to pay zero corporate income taxes for years on end, average taxpayers are forced to pick up the tax burden,” said Sen. Carl Levin (D-MI). “It isn’t right, and we can’t afford it.” This tax preference for corporations costs the U.S. about $2 billion in revenue per year.

In addition, Zuckerberg’s using a totally legal accounting gimmick to transfer money to his unborn children, thus avoiding the gift tax. He also — by virtue of accepting a $1 dollar salary and purely living off his wealth — could be eligible for the Earned Income Tax Credit, which is intended to benefit low-income Americans.

http://thinkprogress.org/economy/2012/05/15/484452/facebook-zuckerberg-avoid-taxes/
 

JuliefromOhio

President
Supporting Member
there you have it ......another good example of how our govt tax policy redistributes wealth to the have-mores.

I think Romney transferred millions to his kids without paying a dime in taxes, too.
 
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