Senate Democrat: Shock is what Facebook can do legally via tax law loopholes

“Sen. Carl Levin (D-Mich.) today held up Facebook and its founder, Mark Zuckerberg, as examples of both ‘a remarkable American business success story,’ and an ‘unjustified corporate loophole’ for stock options that he’s been crusading to close for years,” Janet Novack reports for Forbes. “In a speech on the Senate floor, Levin walked through the extraordinary use of that tax break disclosed in Facebook’s initial public offering, and concluded: ‘I emphasize that Facebook’s actions are within the law. As with so much of our tax code, it’s not the law-breaking that shocks the conscience, it’s the stuff that’s perfectly legal.'”

“As previously reported, Facebook’s IPO disclosed that Zuckerberg has been granted an option to purchase 120 million shares for just 6 cents a share. Financial Accounting Standards Board rules that took effect in 2005 allow Facebook, when it reports it earnings to the SEC and future public shareholders, to count the cost of those options as just 6 cents—or a total of just $7 million,” Novack reports. “But according to tax rules that have been in place for decades, on its tax return Facebook can deduct as a compensation expense the amount Zuckerberg realizes when he exercises his options—an amount that would be nearly $5 billion if he exercises all his options at $40 a share.”

“Levin is chairman of the Permanent Subcommittee on Investigations, which held a hearing in 2007 focusing on the option related tax deductions (in excess of SEC reported expenses) claimed by nine corporations, including Apple,” Novack reports. “Of course, tax geeks might point out that while Facebook can claim a huge tax break for compensation, employees exercising those options will be taxed on the value of that compensation. (In other words, even though there’s a huge gap between SEC and tax accounting, there is at least a balance between Facebook’s deduction and its lucky workers’ reported income.) Moreover, employees’ income on exercise of this type of ‘non qualified’ stock option (as opposed to ‘qualified’ or incentive stock options) is taxed just like ordinary wages —- subject to a current top federal rate of 35%; a Medicare tax (including both the employer’s and employee’s side of that tax) of 3.9%; and a top California tax rate (in Zuckerberg’s case) of 10.3%.”

Read more in the full article here.

[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]

133 Comments

            1. Nothing will be done to pursue our independence from foreign oil without a BIG FAT Kick in the ass! America would just keep buying and consuming oil until the last drop comes out of the ground. Those who make a fortune buying and selling oil are not going to help advance alternative energy. Do we really want to be at the mercy of Countries like Iran and Iraq? God forbid they should discover huge reserves in China!

            2. The Koch brothers and their cronies have more to do with the price at the pump than Obama. Wanna know one of their key strategies: DEREGULATION.

              http://thinkprogress.org/report/koch-oil-speculation/?mobile=nc

              Excerpt: the documents reveal that Koch is also participating in the unregulated derivatives markets as a financial player, buying and selling speculative products that are increasingly contributing to the skyrocketing price of oil. Excessive energy speculation today is at its highest levels ever, and even Goldman Sachs now admits that at least $27 of the price of crude oil is a result from reckless speculation rather than market fundamentals of supply and demand.

            3. Hankster and False,

              Complete FUD on both of your parts. We don’t want your $7 per gallon gas assholes. F you. We aren’t even close to using all oil and nothing that is publicly know of can replace it. We’re not going to destroy the economy and starve people over your Communist, Phony-ECO Boy wet dreams.

        1. Let’s do a little run down on that one:
          1) Warren Buffet
          2) THE Kennedys
          3) George Soros
          4) Kerry-Hienz
          5) Most of wall street voted for Obama in 2008
          6) Most of Hollywood votes Democratic in every election
          7) Upper Eastside is predominately Democratic – as is San Fran, LA and a host of other very, very wealthy areas.
          8) Finally, at least the ‘rich’ Republicans (Koch’s) believe in making government smaller and focused on personal liberty.

          1. Looks like MDN is censoring me, guess you need to be a rapid rethuglican to spew uncensored here. Lets try again:

            Dan said: ” Finally, at least the ‘rich’ Republicans (Koch’s) believe in making government smaller and focused on personal liberty.”

            A little off, let me help you:

            ” Finally, at least the ‘rich’ Republicans (Koch’s) believe in making government private and focused on their personal profits.

            Thats better, if you think they care about you for one minute you are a fool.

  1. Facebook gets to deduct — in the future — the value of the options that Zuckerberg exercises and Zuckerberg gets taxed — as ordinary earnings — on that same value. What is the loop hole here? The whole tax system is premised on this type of equal treatment. It is no loop hole. It is basic fairness.

    1. That’s they way I read it. The income is being taxed at the personal level rather than the corporate level. Ceasar gets his share, so where is the problem? Oh yeah, Ceasar would prefer to double dip: tax the corporation plus the income of its employees for the same dollars.

      That said, I think it is counterproductive to pay employees with stock options. It moves the focus of that employee’s purpose from producing products or providing services for customers to doing “whatever it takes” to keep the stock price high. I’ve seen too many companies fail because they become fixated on the stock price of their company rather than the products they make.

    2. Zuckerberg actually loses in this instance, because he will realize a gain at the sales price (say $40 per share) minus his acquisition price ($0.06 per share). So he’ll have to pay taxes on $39.94 per share because that is his gain.

      All this tax law does is allow the corporation to issue stock in an IPO without having to pay taxes on it right away, while the recipient pays taxes when he/she sells the stock at a huge gain. In the long run, it’s likely results in more tax revenue because the basis of the shares prior to the IPO (the value) would be far greater than $0.06 per share.

    3. thats right, everyone has a chance to buy FB shares at 6c – based on a previous employers idea if i recall the litigation. And both he and the company avoid a fair share of tax, that no ordinary person can avoid paying.
      its sad that people cant see how they are being duped by others who are very well off, yet you are prepared to really defend what is ultimately hurting yourself.
      Sadly very few people here really seem to have the ability to see clearly, without trying to put every person who comments into a box based on whether they agree or disagree with you.
      Someone mentioned things like marxism out of the blue. I bet they have no understanding of what that means, much less what it really means to be republican.
      MDN is getting to be quite a bigoted place in the comments section. It may time to say good bye.
      Sadly, whether its apple or some other big company, their only interest is profit, and if people get in the way, sure ‘at least they have jobs’.
      Think of others for a change.

      1. You tom mee boy, have no idea what liberalism is or where it leads to. Why aren’t you upset at the abusive liberal posts. Not even a thought crossed your mind about those. Check out the Santorum page while you’re at it.

        Please tell me when you have enough of everyone else’s money. When do you stop trampling on the constitution? When do you stop eliminating rights? When do you get the hell out of our lives???? Come on tell us what the ultimate end game is. It couldn’t be communism according to you, fool.

      2. What the hell is mainly being concerned with profit numb nuts?? It’s what brought man kind out of the stone ages fool. It’s not any corporation’s responsibility to do anything for you. You are responsible for you and your family. You thick heads need to get that figured out. It’s not the government’s job to take care of you loser, parasites from cradle to grave. You freaks are pathetic.

  2. Figures the greedy Democrat wants even more for his ill-conceived statism.

    One problem: Voters do not agree.

    Likely voters prefer lower individual, business tax rates

    Three-quarters of likely voters believe the nation’s top earners should pay lower, not higher, tax rates, according to a new poll for The Hill.

    The big majority opted for a lower tax bill when asked to choose specific rates; precisely 75 percent said the right level for top earners was 30 percent or below.

    The current rate for top earners is 35 percent. Only 4 percent thought it was appropriate to take 40 percent, which is approximately the level that President Obama is seeking from January 2013 onward.

    The Hill Poll also found that 73 percent of likely voters believe corporations should pay a lower rate than the current 35 percent.

    Obama had better fire up his class warfare rhetoric even higher or give it the F up already. It’s working about as well as calling everyone who won’t be voting for him a “racist.”

    1. And then when you ask those same voters which government programs we should cut to make up for lower taxes, the only generally positive reactions are to the programs which cost us nearly nothing.

      Of course, voters are going to say they’d like lower taxes, but that’s not the real question. The real question is how we should balance our budget, which is too complex to be dealt with in survey form.

      1. Exactly. And ask everyone on this board if they’d like an iPad3 for $199 or a MBA for $499, you’d get the same responses. Cut Cut Cut. What, then, do you cut? Construction quality? Customer Service? Screen quality? You choose. That type of thinking brought us the “netbooks” of a couple of years ago. or the Kindle Fire of today.

      2. You could start with all of the waste going on with government jobs period. There are assistants to assistants to assistants doing nothing and get paid huge salaries with huge retirement packages and it is unsustainable. You liberal fools love to pretend there is no place to cut while you try to collapse the system. We are on to you!!!!!!!

        1. Really? Assistants of assistants getting paid huge salaries with huge retirement packages? The only people who get that are Congressmen and Senators. The vast majority of government workers — certainly all the teachers, firefighters and social workers I know — make solidly middle-class wages, get solidly middle-class benefits and work as hard as anyone.

    2. Yep.
      I have a problem with 30%. Put the income tax back at 2% and cut 80% of the fed gov.
      They were only to be part time. States were to take care of the majority of gov services.

      Makes me want to move to some private island in the Pacific.

      1. If States take on Federal responsibilities you will either see a big jump in your State taxes, or a big decline in essential services. Take away those services and you just set the stage for anarchy. So get real with your ‘problem’ instead of spewing your delusional mumbo jumbo.

        1. Bull shit. Pure and absolute Bull Shit. You liberals like to try to use the same old sorry BS line. It is patently not true. And you know it. Democrats-Statists-Marxists-Communist, etc. want only one thing and that is total control and domination. Go to hell.

          1. Take off your tin-foil hat and turn off talk radio. Democrats aren’t commies, or Marxists or anti-American. We want the fair and open country we had about 30-40 years ago, before Ronald Reagan started the GOP war on the middle class. We don’t want control. We want decent schools, decent roads, safe streets, clean air and a real chance at the American dream for everyone, not just those to the manner born.

            1. Take off your nut job hat. What the hell are you talking about?

              Question for you: When do you stop trying to steal hard working people’s hard earned income and private property? What tax rate is the final limit? When do you start obeying the constitution of the United States? You say you want decent schools, decent roads, safe streets, clean air is a real load of crap and typical communist excuse for total take over of everything. You keep throwing money at these red herrings and nothing gets any better and unions steal all of that tax money. The opposite population of you slime balls want the same thing but know that you can’t get it the way you lemmings claim to.

              I really want to know, when do you freaks stop? Give out a number, I’m curious.

              Why are there so many waivers for the suck ups to the communists in training running things presently? Why are there so many Solindras? You mtherfckers want to take it all and collapse the system. Stop trying to pretend that’s not exactly what you’re up to.

              I already know the answer, there is no end to what you people will do. You are losers that can’t compete in the real world and can only leach off the producers like the parasites that you are. You are sickening.

        2. The problem is too many people run to government to solve their problems. The last entity which should be rendering most services is the government. The federal government in particular is far too involved in services and other crap that it really has no business being involved with.

      2. You are ignorant of American history. Your figures only exist as a fantasy in your own mind. You should move to a private island in the Pacific where you can practice the sort of politics that you want unencumbered by the quest for a modern society.

    3. Nothing to see here. More meaningless rhetoric that people, in general, want to pay less without sacrificing anything. It is called fantasy, and the Republican party has pandered to that concept for a long, long time.

      When asked about specifics, everyone wants to make spending cuts in areas that have little or no impact to themselves. Big surprise. The budget will never get balanced by polls, desires, or fantasy economics.

        1. Actually Democrats also passed the fantasy that government employees and government spending can continue spending without any limits or any consequence to the value of the dollar.

        1. I didn’t “hawk liberalism,” anonymous cretin. I pointed out the longstanding flaws in the Republican approach. If you had any brains, then you would think for yourself rather than letting someone else do it for you.

          My position varies depending on the topic. For example, I am quite conservative fiscally and rather liberal with respect to environmental issues. I find the platforms and historical performance of both major U.S. political parties to be lacking.

          You are clearly the type that obtains your sense of conviction and belonging via the approbation feedback mechanism of a political party. Well, guess what? Just because you believe something does not make it true. I am an independent, and proud of it.

            1. Perhaps because you guys are pushing the far right GOP talking points more than others are pushing their extreme views. Honestly, you guys push your agenda so hard and with so little class that I would almost rather be a “commie” than be part of a group that you embrace.

              Besides, I don’t have to justify myself you, Mr. Tuttle, or any of the other anonymous posters in this forum. If you are cowardly enough to hide behind anonymity, then your opinion has little value to me.

            2. oh talk about anonymous KINGMEL! Is that really your name? Not to sound like an Obama birth certificate conspiracy but lets see yours if you want to call everyone anonymous.

        2. Enlighten us Jenny, Expose this “Proven Fantasy of Liberalism” boogeyman?

          What the hell does that even mean? I realize you hear it from Rush et-all, but really, what does it mean to you that is so frightening? Where is this “Proof”??

          Can you provide me with concrete examples of how “everything gets much worse for everybody”.

          Spare me the trickle down theory, it has already been proven false.

          1. Your so far gone you don’t even know what Jenny is talking about. Figures. See TowerTone’s video on the Santorum page. That’s you trying to wrap your brain around anything that isn’t communist – zombie – lemming material.

            Ever look at Detroit, a Democrat model for what they want to turn the US into, a hell hole. Not thanks, we’re not buying into that nightmare. Moron.

            1. And here I thought Detroit’s decline was tied to lack of innovation, shitty products, and off-shoring.

              Who woulda thunk it, it was all thanks to an insidious red plot!!

              Bank in your bunker cold war hold out, clearly all that time in the dark has had a negative effect on you..

              Hell, Take frothy goo boy (Santorum) with you, we don’t need an American Taliban.

            2. Chicago, New Orleans, Oakland, and every other democrat controlled area.

              Unions are the other massive problem. Ford is doing nice job. GM should be bankrupt. It’s on it’s way to becoming China motors ass wipe.

        1. The things I defend stand on their own. The things that you desperately attempt to defend are generally idiotic. You speak with a forked tongue, anonymous one, and I do not hear your words.

          1. No you speak with a forked tongue. Liberalism is the work of the devil and will ruin the world. At least we can vote many of you Zombies out this November. Liberals SUCK!!!!!!

    4. I’m REALLY with First 2010. Obama is so obviously responsible for all tax laws in the US — in fact, for the structure of the whole economy and all the nuances of how it works day to day. We clearly know that things are TOTALLY different and screwed up from the blissful paradise that the US used to live in under Bush.

      I also think it’s TOTALLY fair that people earn more money than they could spend in ten thousand lifetimes, while paying only 15% tax — while the working poor live on the edge of starvation in the same city. (And puh-lease don’t give me some frothingly brainless crap about, “They could all get better jobs if they wanted.”)

      1. Wow, try some facts Seamus. The income tax rate is 38% for high income earners. That’s a bit more than 15%.

        If you’re referring to Romney, his income mostly came from investments, which has a capital gains rate of 15%. That’s not income under the Tax Code.

    5. Not to mention that Maobama and comrades want to see Gas go over $7 per gallon and won’t do a thing to try to stop it. Aka: Keystone Pipeline, Drill Baby Drill, and so on. Something is very, very wrong with these lunatics. November’s election will be a nice change.

      1. In truth, gas over $7 per gallon would actually help the country in the long run by forcing us to seriously pursue alternative forms of energy.

        I could go into the history of crude oil/gasoline pricing, but I won’t. Because I despise the few anonymous cretins who pollute this forum.

        MDN sucks royally, because they won’t curate the forum to focus on Apple topics and appear to intentionally incite this type of crap!

        If MDN will not enforce a policy of only allowing registered users to post, then I do not care to patronize this website.

        1. Censor, censor, censor…..

          Fairness Doctrine, Fairness Doctrine, blah, blah, blah.

          You keep coming back you liberal-bot. Can’t win the argument, demand censorship. Pathetic.

          1. No he wins the argument, the problem is you delusional, extremely greedy lemmings are too intellectually challenged to have any sort of rational discussion. You all spout talking points like little rush-bots, and you instantly start calling names. Follow this thread from the top, it is indisputable, simple FACT.

            The truth is partisan hacks like you are exactly what is wrong with this country. I call it the “freedom mob mentality” So consumed with your so called freedom, greed, and American dream that you cannot see that you are but slaves, lulled into compliance. So confused that you rail against the common men and women closer to your class than the talking point makers. It really would be utterly laughable if it wasn’t so sick.

            1. No Truth, he loses the argument, the problem is you delusional, extremely greedy-power hungry lemmings are too intellectually challenged to have any sort of rational discussion. You all spout talking points like little Michael Moore-bots, and you instantly start calling names. Follow this thread from the top, it is indisputable, simple FACT.

              The truth is partisan hacks like you are exactly what is wrong with this country. I call it the “freedom mob mentality” So consumed with your so called freedom is evil, success is bad, and Communist wet dream that you cannot see that you are but slaves, lulled into compliance. So confused that you rail against the common men and women closer to your class than the talking point makers. It really would be utterly laughable if it wasn’t so sick.

            2. Oh please. BOTH parties spew their talking points to the talking heads on TV/radio. Dems call names just as much as Reps.

              The fact is our country could be majorly energy-independent if our political leaders made it a priority. We could convert cars to natural gas and it would cost less than $1 per gallon, and we have 3X more natural gas reserves than Saudi Arabia has oil reserves. Plus, natural gas is cleaner to burn than gas/diesel and we already have infrastructure of pipes in place. You could even have a filling station at your house; then add some at convenience stores, and we could even reduce the number of trucks on the road delivering fuel in 10 years (older gas engined vehicles would still be around for 20+ years).

              Solutions are there, but our politicians (ALL OF THEM) are too focused on stupid crap and pet projects to do something good for everyone.

          2. I did not say “censor.” You did. I said “curate.” MDN owns this forum and it is ostensibly oriented towards Mac-related topics. You and your ilk regularly hijack it for partisan rants. You can spout those rants in any number of other locations, so it is not censorship. But you don’t understand the actual meaning of the word, do you? You are like a child whining for mommy to watch.

            I don’t know why I waste my time on this forum. You will never learn.

            1. YOU want to censor this forum and spread liberals and destroy the US in the process. Therefor you are a liar and disgusting person. You’re the one that doesn’t understand. You want to censor MDN. You freaking jack ass!!!!! Go to hell King Hell.

              You and your communist ilk regularly hijack it for partisan rants. You are like a child whining for mommy to watch.

          1. It would be painful and I wouldn’t like it. But it would also force us to face up to the fact that we need to diversify energy production in the U.S. and save the oil for uses where there is no substitute. Turning all of the oil and natural gas into CO2 and H2O is a pretty dumb thing to do.

        2. Yeah tell the working stiff that barely is making in this economy that $7 a gallon is a good idea. What is he suppose to drive in the meantime before this savior of alternate fuels becomes a reality?

      2. Yes, we have less than 15% of the worlds supply, but we should pay less than everyone else in the world because this is America!

        Pull your head out of your ass and learn something.

        And to your point, more like big oil wants $7 dollars a gallon to stir up idiots like you into voting for another of their stooge administrations. It worked with Carter, can’t you see it happening again? Rising oil prices, scary dark people in Iran.

        Keystone pipeline will do nothing for US gas prices. It’s use is for North American EXPORTS. Never mind that it could pollute the largest western aquifer tainting the water supply for a large swath of the US.

        Idiots like you don’t mind as long as gas is cheap and you can carry on in your own merry little world. Drill Baby Drill, yeah! thats working out great ask anyone in the gulf. Let’s do some more fracking while we are at it, I mean we never really know how much water we can pollute until we try right?

        1. Your the one with the head up your ass. Big Oil, Big this, Big that. You Maobama Zombies are so predictably pathetic. You couldn’t be more brain dead or warped. Nothing you have said in any of your posts resembles anything close to reality. Big corporations are great. Apple is a big corporation. They are not evil. What is big and is evil is Big Government.

          Keystone will do everything to help add more supply. Bull shit on polluting the largest aquifer. You enviro-nuts use that BS to try to stop everything under the sun. It’s not going to pollute anything. We need to have a steady supply of affordable energy for the security of our country. Not some tree-hugging jack ass like you claiming everything under the sun will ruin the environment. News Flash, according to you, your very existence is ruining the environment just by being born. I don’t buy that communist nonsensical argument. Just used to grab power and decide who will be successful and who won’t. Not by competing and winning because you’re the best but because you are a loser and you need another loser to force the outcome by being lucky enough to get elected or stealing the election. Truth, go crawl back into your hole you slime ball.

          1. I’m no Obama-bot, didn’t vote for him. I’m not a democrat either, I recognize the two party system for what it has become. A SHAM. I’m an Independant.

            Unlike you I look for facts and try to view problems from multiple perspectives and arrive at my own educated conclusions. I’m not fed viewpoints by some drug-addled wingbag who spews hate and division half the day on the radio and spends the rest golfing.

            Why is it you conservatards hate the earth? You really think conservation and not polluting is a bad thing? Why does progress have to come at the cost of the environment with you wackos? Haven’t you seen enough evidence in our short history to conclude that corporate greed comes at a huge cost to the planet and it’s people?

            Here as some FACTS on keystone for you:

            Keystone XL will not lessen U.S. dependence on foreign oil, but transport Canadian oil to American refineries for export to overseas markets.
            Keystone XL is an export pipeline. According to presentations to investors, Gulf Coast refiners plan to refine the cheap Canadian crude supplied by the pipeline into diesel and other products for export to Europe and Latin America.

            Proceeds from these exports are earned tax-free. Much of the fuel refined from the pipeline’s heavy crude oil will never reach U.S. drivers’ tanks.

            Reducing demand for oil is the best way to improve our energy security. U.S. demand for oil has been declining since 2007. New fuel-efficiency standards mean that this trend will continue once the economy gets back on track. In fact, the Energy Deptartment report on KeystoneXL found that decreasing demand through fuel efficiency is the only way to reduce mid-east oil imports with or without the pipeline.

            By draining Midwestern refineries of cheap Canadian crude into export-oriented refineries in the Gulf Coast, Keystone XL will increase the cost of gas for Americans.

            TransCanada’s 2008 Permit Application states “Existing markets for Canadian heavy crude, principally PADD II [U.S. Midwest], are currently oversupplied, resulting in price discounting for Canadian heavy crude oil.

            Access to the USGC [U.S. Gulf Coast] via the Keystone XL Pipeline is expected to strengthen Canadian crude oil pricing in [the Midwest] by removing this oversupply. This is expected to increase the price of heavy crude to the equivalent cost of imported crude.

            The resultant increase in the price of heavy crude is estimated to provide an increase in annual revenue to the Canadian producing industry in 2013 of US $2 billion to US $3.9 billion.”

            Independent analysis of these figures found this would increase per-gallon prices by 20 cents/gallon in the Midwest.

            According to an independent analysis U.S. farmers, who spent $12.4 billion on fuel in 2009 could see expenses rise to $15 billion or higher in 2012 or 2013 if the pipeline goes through. At least $500 million of the added expense would come from the Canadian market manipulation.

            Now there you go, no price drop for you, exactly the opposite. No tax revenue for the US. Lets get to the meat of the issue: Safety..

            Safety: A rupture in the Keystone XL pipeline could cause a BP style oil spill in America’s heartland, over the source of fresh drinking water for 2 million people. NASA’s top climate scientist says that fully developing the tar sands in Canada would mean “essentially game over” for the climate.

            The U.S. Pipeline Safety Administration has not yet conducted an in depth analysis of the safety of diluted bitumen (raw tar sands) pipeline, despite unique safety concerns posed by its more corrosive properties.

            TransCanada predicted that the Keystone I pipeline would see one spill in 7 years. In fact, there have been 12 spills in 1 year. The company was ordered to dig up 10 sections of pipe after government-ordered tests indicated that defective steel may have been used. KeystoneXL will use steel from the same Indian manufacturer.

            Keystone XL will cross through America’s agricultural heartland, the Missouri and Niobrara Rivers, the Ogallala aquifer, sage grouse habitat, walleye fisheries and more.

            The agency was not adequately accounting for threats to wildlife, increased pollution in distressed communities where the crude may be refined, or increases in carbon emissions that would exacerbate climate change, and a variety of other issues.

            Well there you go, the company that wants to build it, already has one pipeline, they claimed would leak once every seven years that has leaked 12 times in the first year. Why? Because the corporation, looking to protect profit used inferior lowest bidder steel, the same stuff they will use to build the new one.

            Yep, looks like a great idea doesn’t it lemming?

            1. Cite me the source of these “facts”. Anyone can spew safety and profiteering. I can easily mentioned the infamous, near where I live, in cronyism in the alternative energies.

            2. Harry, I would love to. However the MDN commenting system has been not posting anything I post with more than one link.

              I’ve tried twice now to cite a half dozen links to the Koch lovers here highlighting their Oil Speculation, Their safety regulation skirting, their cancerous product producing, their buying judges so they can directly pollute rivers, and their segregation experiments and school board highjacking., as well as their political cronyism.

              Try this one for starters: http://www.nrdc.org/energy/files/tarsandssafetyrisks.pdf

            3. Conservatives hate the earth. What the hell is wrong with you. You belong in a nut house with your off the wall rants.

              Everything you spew is BS. Bring on the oil BABY!!!!!!! Lower the taxes!!!!!!!!!!!!!! Spur on the economy!!!!!!!!!!!!!!!!!!! Ignore idiots like NON-Truth!!!!!!!!!!!

          1. Glad to see you made it to third grade Mary.

            I guess when your ideas are bankrupt and lacking factual basis this is the response..

            It highlights brilliantly the problem facing the GOP. A party so in love with liberty, the biggest issues of the day are Controlling Contraception, abortion, voter rights & who can marry who.

            Never mind tough issues like out of control military spending, unemployment, and corporate control of elections. God forbid the environment be any part of the discussion.

            1. Yeah your Democrat buddies are doing such a wonderful job right now. Out of control military spending? How about the cut backs the Obama administration has implemented? How about, caring for the family and troops, the cut back on the families of military personal health care benefits?

            2. This is where the argument really gets fun..

              I’m no democrat, I’m independent. The two party system is a sham. Obama looks a lot like Bush to me, still war mongering, still rampant cronyism in appointments, civil liberties eroding everyday. Indefinite detention? Talk about unconstitutional.

              I also happen to be a decorated USMC vet. I’ve seen war, and it is ugly. There is nothing I despise more than chicken-hawk politicians beating the drums of war like the GOP candidates are doing with IRAN right now.

              Personally I think it is very telling that this is the only place the R’s & D’s could come together on Military cuts. Telling isn’t it, that defense contractors and bombs have more value than the health of veterans. Many retired servicemen were sold on lifetime medical care as a benefit when they enlisted and reenlisted. Now we are effectively saying, sorry, we lied.

              I don’t give corporations a free pass, history tells us we shouldn’t. I also care deeply for the environment, I have children, I can readily see how pollution has affected natural resources in my lifetime, I’m committed to changing that.

    1. Secret to 108-year old Holocaust survivor’s longevity and joy of living- “I know about the bad. I only look at the good.”

      Instead of whining about politics (or evil), she makes music.

      I want to be like her when I grow up. Argue amongst yourselves. No one here is an authority about governing or economics.

  3. The issue is that when the options were issued, the company accounted for the 6cents as an expense, thus reducing their taxable income as a company.

    Then a year or so later when the shares are exercised (sold) mark pays income tax on the gains AND the company declares another expens, only this time for the capital gains.

    So in essence the company has double dipped by deducting the options from their income twice. Once for the real cost of the shares and once for the whole of the capital gains.

    Pick one. This would be like declaring mileage AND deducting your fuel costs when calculating your taxes. We can’t do it and corporations houldnt be able to do it too.

    This has nothing to do with making corporations pay taxes on the capital gains.

    But the make this fair, the corporations could either pay taxes on those capital gains and then declare the losses or they shouldn’t be allow to declare the expense at all the second time around.

    1. How about all of the endless infinity dipping by the government with taxes on top of taxed taxes and so on and so on?????? You liberals can never have enough of other people’s money.

      1. You Neocons can never hoard have enough money?

        Is that the appropriate response to your liberal assumption?

        GOP candidates say washington should be run like a business. FACT GOP Partisans want tax breaks for business and people alike. FACT (wait, I forgot, corporations ARE people)

        WHERE IS THE REVUNE FOR OPERATIONS GOING TO COME FROM?

        Almost forgot, cutting Military spending is 100% OFF THE TABLE, never mind that it accounts for 3/4 or more of government spending. It must remain.

        SO I SAY AGAIN: (remember run it like a business) WHERE DOES THE REVENUE FOR OPERATIONS COME FROM?

        Can you not see where this reasoning leads: Bankruptcy, insolvency.

  4. Someone do a animated GIF of Obama smashing a computer on Zuckerbergs desk, cuz that’s exactly what this is: stealing money with sneaky douchebag lawyers…except this time… you’re stealing from the taxpayers.

  5. Can we leave the politics out of this? I am truly tiring of the reflexive nastiness. Can we just stick to the topic? I’d hate to see yet another comment area closed, but it seems some people just have to spew their vile. (Hint: Name calling is so 3rd grade.)

  6. And what idiot wrote, sponsored or voted on such tax codes that are perfectly legal that Facebook is taking huh Mr. Levin?!

    TERM LIMITS PLLLEEEAAASSSSEEEEEE!!!!!!

    Get rid of Levin’s sorry ass and a whole lot more, both Republican AND Democratic… NONE HAVE THE SENSE TO KNOW WHEN THEY’VE STAYED THEIR WELCOME!

    1. Completely agree: career politicians from BOTH the Left and Right are killing our democracy with their back room deals, political favors, and tax code protection.

      Then again, not too many folks seem concerned that Obama is trampling the constitution like it’s a piece of old toilet paper.

  7. Wow! Look what this article drags in? A bunch of political squabbling just like the Republicans and Democrats. The polarization not only takes effect in the Congress but in public opinions….. grow up guys! George Washington and our other forefathers would have slapped you all upside the head like they do on NCIS. Back then it was unity to come to a common solution than polarity!.

    1. I suspect most of our forefathers were too uncertain of their footing in such a grand experiment to fool themselves into thinking they had all the answers, so compromise was more attainable.

      Today we’ve managed to turn self-doubt into a sin and compromise into a capital offense. Very different era.

    2. George Washington and our founders are doing back flips in their graves over what the kenyan and comrades are doing to the US. This is not what they had in mind and the constitution proves it. The constitution, you know, the thing every democrat hates.

        1. Yeah and people in Africa owned slaves back then and further beyond in history. So did Indians. Those were different times and that practice was abolished by Republicans. Many KKK-ers in the Demotard party shit for brains. The founding fathers were far smarter than any of you brain dead zombies could ever dream of being. You are useful idiots for the powers that be in your “party” comrade.

  8. You are either a maker or a taker. Obummer hates the constitution and capitalism. Union oafs are typically stupid and uneducated and will vote union for the easy free ride. If you dont like the stock market don’t play it. 15% is tax on investment money that has already been taxed. Corporations if taxed more, a typical democrat libtard desire, is and only would be passed on to the consumer but libs are too dumb or greedy to know or care. It’s the makers against the takers. Sadly there are so many takers. This nation is doomed. Last what a guy like zuckerberg does with his money is none of the governments business. Dems are takers. Leaches. They need to be shamed.

    1. Spoken like a true Republicans. Just throw monkey chit at the Democrats when the Republitards were responsible for most of the deficit the country is in! Them Republicans are more of a taker than giver because they cant handle any tax increase!! Next time you spew BS, learn to give on taxes than to take from the lower and middle class!!

      1. The responsible party for the current financial post is owned by demotards and their Fannie and Freddie policies. Period. Do some research. When taxes are low and the myriad barriers to doing business are removed the economy flourishes and more tax money than any of you commies know what to do with flows in. You hate not being in control of how the money is made and what people want to do with their hard earned money and private property. You hate the constitution and you obviously hate the US. Democrats, the party of hate and party of true racists.

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