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Facebook CEO Mark Zuckerberg could face massive $2 billion tax bill

By Leeky
Feb 8, 2012
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  1. Facebook’s much publicized IPO will make founder and CEO Mark Zuckerberg a billionaire, but it could also land him with a staggering $2 billion tax bill as a result of…

    Read the whole story
     
  2. I feel his pain, paying 1.5B$ and getting 3.5B$ in his pocket, wow I would hate to be him. Poor guy.
     
  3. LinkedKube

    LinkedKube TechSpot Project Baby Posts: 4,265   +41

    Not even sure why anyone would be surprised of this.
     
  4. Ranger12

    Ranger12 TS Guru Posts: 637   +117

    Because the popular opinion amongst young Americans seems to be that the rich don't pay their "fair share". It might surprise some that this guy, though rich, still has to give up nearly half what he makes to the government, who's gross ineffiencies will squander the majority of that money.
     
  5. SeiveD

    SeiveD TS Rookie Posts: 26

    Ranger12 is dead on. I've always found that argument ridiculous, especially because tax rates are generally percentages. If a so-called rich guy is making 10 times as much as you, but has the same tax rate, he's still paying 10 times as much as you in taxes. Why is it only fair if he makes 10 times as much as you but pays 20 times as much in taxes?

    I also agree with the second point, the government is horribly inefficient. Money is far better off being in the private sector than with the government.
     
  6. Raswan

    Raswan TS Enthusiast Posts: 280

    Except for there's no way he regularly pays (or has paid, or will pay) nearly half of what he actually makes makes in taxes. The article explicitly says he's going to pay himself 1 dollar next year; like many other super-rich people, he'll make his money in retained earnings. So he might be paying 28% income tax, but it'll be on an income not of three billion or even three million, but three hundred thousand (or whatever). The point is, simply spouting numbers does nothing to tell the real story, and shows as much understanding of the tax system as your assertion that the government's "gross inefficiencies (corrected your spelling there--you're welcome) will squander the majority of that money."
     
  7. dms96960

    dms96960 TS Enthusiast Posts: 225   +20

    "The highest marginal tax rate in the US currently is 35 percent, coupled with the founder's home state of California also taking an additional 10.3 percent to its coffers from those earning $1 million or above per year."

    If he is so smart, why didn't he move to, say, Nevada, or Texas, or some state with a lower tax rate before this happened?
     
  8. igotdembombs

    igotdembombs TS Rookie Posts: 17

    Big numbers impress me very easily. Especially when those numbers describe one person.
     
  9. Ranger12

    Ranger12 TS Guru Posts: 637   +117

    Raswan, I think we an both agree he will be paying capital gains taxes and not retained earnings taxes. The capital gains tax rate is indeed lower than the income tax rate you and I pay. This is to encourage those with large amounts of money to keep investing which grows businesses and creates more jobs. This benefits us as well. I agree the current tax system is a mess. I'm an advocate of a consumption tax or something like te Fair Tax.

    Really, I don't think anybody truly believes government is an efficient entity so I'll ignore that objection.
     
  10. Relic

    Relic TechSpot Chancellor Posts: 1,392   +16

    Because he is alright with paying at that rate, and if I'm not mistaken is even cool with a tax increase on the 'uber' wealthy. Pretty sure he also pledged to give the majority of his fortune away over his lifetime like Buffett and Gates.

    @Ranger This 'young' American wants capital gains taxes to return to pre-Bush levels which seemed to work just fine.
     
  11. raybay

    raybay TS Evangelist Posts: 10,716   +6

    Zuckerberg's lawyers and tax accounts went over this in detail long before they took any action... probably planned for it, years in advance. You can guarantee that Zuckerberg will come out as well as possible... and certainly better than the taxes you and I would pay.
     
     
  12. Ranger12

    Ranger12 TS Guru Posts: 637   +117

    True, I was surprised when Obama extended those tax cuts. Although when they do run out its not like income tax payers are going to pay less and seeing as congress can't pass a budget much less balance one I'm not inclined to hand over more cash to them. Buffet, Gates, and now Zuckerburg can much more efficiently distribute there wealth themselves, if they choose to do so.
     
  13. lipe123

    lipe123 TS Guru Posts: 448   +80

    Yet another great example of the amazingly fair tax system at work! I think everyone in the world should talk to their employers and get a 1$ /year payment with incentives and a bonus here and there.

    Tax breaks for everyone!
     
  14. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,119   +723

    It won't be his last tax bill... he just won't be paying any tax on his salary. If he sells any more stock in the future he'll pay tax. If he makes any money on any other investments, he'll pay tax. The govt makes you pay anytime you receive money, just because it doesn't come in the form of a paycheck doesn't mean he won't be taxed.

    And lipe123... if your employer paid you far less, but let you live at work and fed you for 'free', then you could avoid some taxes. Problem is, most of us like being compensted with money. :) Zuckerburg has so much already he doesn't need a salary. It's a dumb popularity stunt to avoid anyone pointing a finger at him and screaming 'RICH CEO'
     
  15. many options here, imho he should just buy a politician or two, they come quite cheap these days, pass a ''cool'' law and save hundreds of millions.
     
  16. Anyway the divine job creators should never be taxed, that at least is understood in the USA.
     
  17. And orthodox communism has no income taxes. Should he have move to a communist country?
     
  18. Rasta211

    Rasta211 TS Enthusiast Posts: 195   +24

    He should just take all his money and run. Screw the government!
     


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