TWO BILLION DOLLARS IN TAXES?!?!?! WTF?!
When Facebook goes public, Mark Zuckerberg will be a billionaire, hands down.
But due to the fact that stock options are heavily taxed, the government will come down on Zuckerberg HARD!
Accountants state that the bill will be historic. They believe that shares will go at a premium of $40 a share, though Facebook values them at around $30.
When the IPO is over, Facebook will be worth $100 BILLION!!! Adding that fact to Zuckerberg's options that he plans to sell, he's raking in $5 billion.
This is where all that money hurts Zucky: With California's 10.3% income tax on those who make more that one million bucks combined with the marginal tax rate at 35%, the Facebook creator may have to pay between $1.5 to $2 Billion.
That's a lot of money; it might as well be a government donation!
We'll see what happens to all that cash!
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[Image via WENN.]
Tags: business, economy, facebook, government, ipo, mark zuckerberg, sell, stock, taxes