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FBN’s Elizabeth MacDonald on the potential $16 billion tax break Facebook may get after going public thanks to an IPO tax loophole.
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Truth and they will wrong people while FaceBook is celebrating its IPO if faces an angry congress now on the attack over.
Well huge tax breaks it could get it's worth wait for a sixteen billion dollars interest thing Elizabeth McDonald he has been investigating how do they get this huge tax.
Yeah we've been working the phones on this one guys and it's a big deal it could zero out Facebook's.
I -- -- tax bill for twenty years and here's the deal when we before FaceBook went.
Public eight set -- stock options for a -- top executives.
And -- IRS tax returns.
The swing the difference higher in the stock options that the -- granted as executive -- -- -- so now we've got senator Carl Levin on the warpath.
And take a look at what he is saying now I'd like to close -- IPO tax loophole he's calling it outrageous this is the biggest Mack truck ever the FaceBook is riding.
He's saying it is shocking that Contra conscience he's saying we're letting FaceBook wipe out taxable income for the next when he hears a gang.
The name of the game is you know there was questions over how much FaceBook share price could rise because of weakness an ad revenue also write new regulatory headwinds.
But you know BI -- in the US treasury is gonna help amount here but there's no way they can get around this I think in congress.
It's tax code first yeah well these guys keep -- after things that are black and white and sick animal.
You have the individuals -- get smacked with a mighty fine tax bill so while they might not be paying it on the corporate side.
The individuals are going to be paying the difference between.
The fair value of their stock -- -- there's there's a broad -- and real serious CEO of executive pay fat cat pay controversy over this.
The reason why this loophole exists -- to help out Silicon Valley startups that don't wanna pay cash.
Other workers at a given right paper stock options and stick to what it sometimes just -- you have this loophole you will shut down Silicon Valley -- this happens but you know.
So there eleven is using a big monkey wrench throwing it at FaceBook saying look you get trade enforcement you get cyber security protections you can rent protections and federal government.
You gotta pay your fair share whether or not he gets this.
New bill -- remains to be seen big controversy -- right now where it's not -- I thank you very much your attacks slowed it is.
It's not -- help your bottom line protect.
