Daktoria
Banned
- Joined
- Oct 27, 2011
- Messages
- 3,245
- Reaction score
- 397
- Gender
- Undisclosed
- Political Leaning
- Private
News Headlines
Zuckerberg isn't just an internet mogul, but someone who catalyzed a social revolution in changing the way we live our lives.
Would you be willing to grant him tax immunity for everything he's done?
Next year Mark Zuckerberg’s base salary will receive a dramatic pay cut—going from a base salary of $600,000 to just one dollar. Which raises the question: will he ever pay taxes again? Zuckerberg’s salary cut is being compared to similar moves by other tech titans. Google’s Eric Schmidt and Larry Page are paid just $1 annual salaries. Steve Jobs took just $1 in salary from 1997 until his death last year. Other members of the one-percent/one-dollar club include Oracle’s Larry Ellison and Hewlett-Packard’s Meg Whitman...
...Zuckerberg will also be able to access credit secured by his Facebook holdings—which will amount to billions of dollars. These lines of credit will not be tax advantaged—no deduction for interest payments—but they will supply him with spending money that will not be taxed.
When you have the net worth of Zuckerberg, you can live for a very, very long time on tax-free debt that you can use as income. Let’s say that Zuckerberg needs $2 million of spending power per year and lives another 60 years. That’s $120 million of spending. If he gets an interest rate of 4 percent and just rolls it over as new debt, he’ll eventually accumulate around $520,919,997. Some of that interest, of course, may be deductible against other income. The might seem like a lot of debt. But for Zuckerberg—who will likely be worth around $25 billion when Facebook goes public—it’s a drop in the bucket. What’s more, if Facebook continues to grow, Zuckerberg’s worth will grow along with his debt. His debt burden will be negligible compared to his net worth. The unimaginably rich really are different from the rest of us.
Zuckerberg isn't just an internet mogul, but someone who catalyzed a social revolution in changing the way we live our lives.
Would you be willing to grant him tax immunity for everything he's done?