Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/30/2013 (2 years ago)

Catholic Online (www.catholic.org)

Huge windfall unlikely to upset Internet wunderkind

Facebook founder Mark Zuckerberg got hit with a $1.1 billion tax bill for 2012. This momentous debt owes to his company's decision to go public last year, which in doing so brought Zuckerberg's fortune to an estimated $13 billion. He can't hit the "like' button over this, but as others have pointed out - Zuckerberg will survive.

What. me worry? With a personal fortune exceeding $13 billion, few believe that Facebook's Mark Zuckerberg will be that upset with his $1 billion tax bill.

What. me worry? With a personal fortune exceeding $13 billion, few believe that Facebook's Mark Zuckerberg will be that upset with his $1 billion tax bill.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/30/2013 (2 years ago)

Published in Business & Economics

Keywords: Mark Zuckerberg, Facebook, tax bill, windfall, billionaire


LOS ANGELES, CA (Catholic Online) - In his decision to go public, Zuckerberg not only amassed $13 billion, but also about $2.3 billion in stock options alone that he reported as income last year.

Coupled with a 48.3 percent total tax rate, that leaves Zuckerberg owing Uncle Sam more than $1 billion.

Few will shed tears over Zuckerberg's plight. Billionaires such as he usually don't grieve their giant tax bills, one expert says. "I have had very few clients that get these huge windfalls who have resented paying the tax. They know they got lucky," San Francisco-area accountant Stan Pollock says.

"Most people are thrilled, to tell you the truth," Stan Pollock, a San Francisco-area accountant who specializes in handling tax issues for tech workers, told CNN. "I have had very few clients that get these huge windfalls who have resented paying the tax. They know they got lucky."

A spokeswoman for Facebook declined to comment on the monstrous tax bill.

Zuckerberg bought 60 million Facebook shares the day of its initial public offering. Since then, he sold more than 30 million shares for about $1.13 billion. A regulatory filing submitted then said Zuckerberg would use most of that money to cover his taxes.

This debt is even before factoring in some deductions, such as for the $500 million charitable donation he made in December to the Silicon Valley Community Foundation, and any other income Zuckerberg collected last year. Only Uncle Sam and California's tax agency know exactly what's in Zuckerberg's return, but three California CPAs believe Zuckerberg's bill for the year will probably exceed $1 billion.
 
This is unusual, even for billionaires.
 
"With numbers that large, it's usually capital gains, not ordinary income," Toby Johnston says, a partner at tax firm Moss Adams LLP's Silicon Valley office who works with wealthy clients. Investors profiting off their gains paid a significantly lower tax rate last year than Facebook's founder will. The highest federal capital gains rate in 2012 was 15 percent. It goes up to 23.8 percent (including a Medicare surtax) this year.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2015
Universal:
Scientists: That those involved in scientific research may serve the well-being of the whole human person.
Evangelization: Contribution of women: That the unique contribution of women to the life of the Church may be recognized always.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Business & Economics

New York Times reports substantial loss in spite of digital growth Watch

Image of There has been a move to make the newspaper more attractive to readers. The newspaper's cooking product, a hub for recipes and food-related content, has been free since its introduction.

By Catholic Online (NEWS CONSORTIUM)

In just one of growing death knells of the daily print newspaper, the iconic New York Times reported a hefty $15 million loss for the first quarter of 2015. Digital subscriptions continue to show solid growth. Digital advertising grew at a double-digit pace. ... continue reading


Shakeup at Walt Disney Parks -- information technology employees replaced by non-immigrant workers Watch

Image of Both Disneyland and Walt Disney World certainly were not the happiest places on Earth for many employees at the beginning of this year.

By Catholic Online (NEWS CONSORTIUM)

Both Disneyland and Walt Disney World certainly were not the happiest places on Earth for many employees at the beginning of this year. Multiple layoffs went around to many several information technology employees and were told their final day would be January ... continue reading


Apple can't seem to spend money fast enough as profits soar and cash reaches a staggering $194 billion Watch

Image of At Apple - the company can't seem to spend money fast enough.

By Catholic Online (NEWS CONSORTIUM)

Digital gadget maker Apple has ended the first calendar quarter with $33 billion in cash and short-term investments and $160.4 billion in long-term investments. Apple currently has $194 billion in cash and investments, more than any other non-financial company ... continue reading


Meet the billionaires who pledged to give up their fortunes to change the world Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

Through the "Giving Pledge," men and women belonging to the upper crust of the society, with billions of dollars in their name, commit to donating a large chunk of their fortune, whether through their lifetime or through their will. Coming from the majority of their ... continue reading


World's discarded electronic junk building up into massive toxic dump Watch

Image of Less than 16 percent of global e-waste is being diverted from landfill into recycling and reuse.

By Catholic Online (NEWS CONSORTIUM)

Television sets, washers and driers, stereos - broken, discarded, and then thrown away, are creating a massively toxic waste dump of gargantuan proportions. The irony in all this "e-waste" is the fact that precious metals such as gold and silver are also thrown ... continue reading


Australian father-and-son team raises $10 MILLION for beehive project Watch

Image of The beehive symbolizes productive activity, and for father and son Cedar and Stuart Anderson of Australia, their project was literally that.

By Catholic Online (NEWS CONSORTIUM)

The beehive symbolizes productive activity, and for father and son Cedar and Stuart Anderson of Australia, their project was literally that. Nearly 30,000 people have funded their "Flow Hive" project on Indiegogo for $10 million dollars. Not bad at all for such ... continue reading


'Slow ya roll' Obama. You spoke too soon? Job growth suddenly slows down Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Intent on rallying the nation on its improved economy, U.S. President Barack Obama appears increasingly aware that threats are gaining speed that could derail job growth. LOS ANGELES, CA (Catholic Online) - "Our economy has been growing, we've got momentum," ... continue reading


Federal taxes unbelievably through the roof for February Watch

Image of Uncle Sam took in a lot of cabbage for the first few months of 2015. Why is the U.S. still trailing a momentous deficit, then?

By Catholic Online (NEWS CONSORTIUM)

Uncle Sam took in a lot of cabbage for the first few months of 2015. Inflation-adjusted federal tax revenues hit a record $1,185,613,000,000 in the first five months of fiscal 2015. Why is it that the U.S. federal government still ran a $386,537,000,000 deficit ... continue reading


Top 10 most financially important cities in the world Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

New York City is still the most important center in the financial world, according to the latest ranking made by the Long Finance in The Global Financial Index 17. In the latest rankings, it was observed that more cities in Asia are becoming important within the world ... continue reading


Apple topples AT&T from Dow Jones in reflection of iPhone's dominant position Watch

Image of The move by S&P Dow Jones Indices had been widely anticipated since a seven-for-one stock split in June 2014.

By Catholic Online (NEWS CONSORTIUM)

Largest company in the world, Apple will join the Dow Jones Industrial Average to replace AT&T. The change reflects the dominant position of the iPhone maker in the U.S. consumer economy today. The figures tell the tale: Apple has a market capitalization of ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Acts 9:26-31
26 When he got to Jerusalem he tried to join the ... Read More

Psalm, Psalms 22:26-27, 28, 30, 31-32
26 The poor will eat and be filled, those who seek ... Read More

Gospel, John 15:1-8
1 I am the true vine, and my Father is the ... Read More

Reading 2, First John 3:18-24
18 Children, our love must be not just words or mere ... Read More

Saint of the Day

Saint of the Day for May 3rd, 2015 Image

St. James the Lesser
May 3: St. James the Less, the author of the first Catholic Epistle, ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter