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Twitter Tax Controversy Explained In Cartoon Form
theodp writes "If you prefer to digest your news in a cartoon format, you'll be happy to know that the Twitter tax controversy has gotten the Next Media Animation TV treatment. In the NMAtv clip, Twitter co-founder Biz Stone cuts a tax break with San Francisco Mayor Ed Lee and ascends a ladder to 'Tax-Free Haven' where he's high-fived by execs from GE and Google. If you insist on reading the news, IBD has an account of the payroll tax break, which critics are calling corporate welfare."
A hilarious, but true, story. Please remember, when you see 'haven' instead of 'heaven,' that English isn't everyone's first language.
I do think it is motherfucking bullshit that I pay a higher percentage of my income in taxes than these companies
First off, the tax in question here is a payroll tax which comes out of the employees' salaries and stock options. So this is a good thing for workers at Twitter.
Second, you only pay income tax on your net income. Of course, when people piss and moan about corporations "not paying their share", they only look at their gross income. Companies can have enough expenses in a year that they essentially have no or little income, and you have to keep that in mind when looking at their tax burden.
Third, a company that is successful and hires lots of workers is going to pay into Social Security and other tax schemes through payroll taxes. So whether the corporation itself pays taxes or not, the government is still getting money from them. No one gets out of paying completely, it just doesn't happen.
God invented whiskey so the Irish would not rule the world.
So, why did you start an S-corp if you don't like the laws governing them?
Let me guess -- because you wanted to take any losses on your personal income tax, and gain the ability to claim things as business expenses. Seems like you're getting consideration in this deal too.