Thursday, October 15, 2015

Facebook Tax Bill Scandal

A new story comes out of the United Kingdom, discussing how much Facebook paid in taxes.  The article is titled, "£4k tax bill: Facebook ‘running rings around taxman,’ pays less than average British worker" and appears on the website

Do you think Facebook should pay more, or do you think that the average worker gets so much value from the website that it "pays for itself."  After all, some may say that Facebook provides a public service for the entire world, right?  I hope you can sense the sarcasm here.

From the website:
Social media giant Facebook paid just over £4,000 in corporation tax last year. That’s £1,000 less than the average British worker.

Facebook’s UK operation paid £4,327 in corporation tax for the year in 2014 despite receiving over £100 million from advertising and other forms of revenue, according to the Sunday Times.

The average UK salary is £26,500. The average worker pays a total of £5,392.80 income tax and national insurance contribution.
The figures show the average British worker pays more tax than the multi-billion pound social networking firm.
‘Running rings around the taxman’

Facebook’s finances will be discussed by a House of Commons watchdog.
Chairwoman of the public accounts committee and Labour MP for Hackney South Meg Hiller said the findings show Facebook is “running rings” around the taxman.
Facebook makes a lot of money each year, and is poised to be making a lot more as they up their video streaming service in the future.  The goal, according to Facebook is:
"Facebook wants to become a destination for rich content - not just news about your friends and what they are up to. 
"And adding professional content in particular is a way to not just drive up the amount of time people spend on the site, but also the pricing it can charge for associated advertising."

Are you going to spend more time on Facebook now that they are improving their video service?  That decision is up to you.

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