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Facebook pays a lower effective tax rate than most HN commenters.
by hamandcheese 4y ago
Facebook pays a lower effective tax rate than most HN commenters.
- Closi 4y agoWell that's probably mostly because the corporate tax rate in the united states is lower than many HN commenters taxes, rather than specific Meta policies. (USA corporate tax rate is 21%, while someone earning $200k in California would pay an effective rate of 33% including Federal, FICA & State taxes). Besides - the effective paid 17% compares favourably with their competitors and others in the space.
- googlryas 4y agoIs there a reason corporations even pay taxes, versus just taxing individuals once they get money distributed to them from the corporation?
- throwaway5959 4y agoIf that happens I’ll form a corporation, rent forever and have my employer pay my corporation and move to a state without income tax.
- vineyardmike 4y agoShould move to Puerto Rico and avoid federal tax.
- zeroonetwothree 4y agoThe corporate income tax rate is already much lower than the top federal rates so you can already benefit from this. Except that you still owe taxes when your corporation gives the money to you (the individual).
- Closi 4y ago> Is there a reason corporations even pay taxes, versus just taxing individuals once they get money distributed to them from the corporation? Yes - because without corporation tax the revenues might get funneled out of the country and taxed elsewhere in tax avoidance schemes (both at the 'corporate' level in foreign-owned businesses, and at the individual level with the ability for the rich to setup shell corps to avoid income tax).