Zoom will pay zero federal taxes due to tax credits from previous years
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Re: Zoom will pay zero federal taxes due to tax credits from previous years
#2Fact check: True, but misleading. I'll cite:
"The biggest reason for Zoom's de minimis tax bill is outsized executive compensation. Zoom paid $580 million in stock compensation alone in 2020, much of it likely to a handful of top executives, according to a calculation by CBS MoneyWatch based on the company's latest financial filings."
At some point, somebody will have to pay taxes on selling that stock. Or if they never sell it, at least they will prop up the stock market, so the Fed has to do less of that with everyone else's money.
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#3* In fact, Zoom's 2020 tax bill will likely be less than zero. That's because Zoom, according to its financial statements, booked a $300 million tax credit last year to use against future earnings.*
So basically tax credit for prior year losses.
Not sure this is an issue?
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#4Fact check: True, but misleading. I'll cite: "The biggest reason for Zoom's de minimis tax bill is outsized executive compensation. Zoom paid $580 million in stock compensation alone in 2020, much of it likely to a handful of top executives, according to a calculation by CBS MoneyWatch based on the company's latest financial filings." At some point, somebody will have to pay taxes on selling that stock. Or if they ne…
Did they really write “likely to a handful of top executives”. Stock compensation is pretty typical for tech companies.
But as long as they put “likely” in front of that statement they felt it was appropriate?
I mean, they could look at 10-Ks. To see how the executive are compensated.
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#5My understanding is Zoom is a chinese company. Federal government under Trump was not ready for pandemic, it did not provide any infrastructure for remote learning or work from home. Instead you relied on free infrastructure provided by China. Federal government should pay to Zoom!!!
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#6Or, told another way:
For several years, Zoom has spent much more than it has earned ($300M more in fact), on expenses like staff, rent, services and supplies from other companies - which will have generated large amounts of income taxes, payroll taxes, sales taxes, franchise taxes, municipal taxes, etc.
This past year they have grown dramatically, and will have generated even more income taxes, franchise taxes, municipal taxes, etc than ever before, and also some present or future capital gains taxes due to the huge increase in the company's valuation.
They just don't have to pay federal income tax yet, until the net income they make exceeds the net losses they recorded over previous years.
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#7Fact check: True, but misleading. I'll cite: "The biggest reason for Zoom's de minimis tax bill is outsized executive compensation. Zoom paid $580 million in stock compensation alone in 2020, much of it likely to a handful of top executives, according to a calculation by CBS MoneyWatch based on the company's latest financial filings." At some point, somebody will have to pay taxes on selling that stock. Or if they ne…
Correct me if I am wrong, wouldn't that mean if the stock value goes down and is sold at a much lower price, the collected tax would be much less?
And isn't it possible to reduce tax even more from capital losses from stocks?
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#8My understanding is Zoom is a chinese company. Federal government under Trump was not ready for pandemic, it did not provide any infrastructure for remote learning or work from home. Instead you relied on free infrastructure provided by China. Federal government should pay to Zoom!!!
My school(in Europe) used MS Teams. I’d argue you didn’t HAVE to go with Zoom.
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#9Or, told another way: For several years, Zoom has spent much more than it has earned ($300M more in fact), on expenses like staff, rent, services and supplies from other companies - which will have generated large amounts of income taxes, payroll taxes, sales taxes, franchise taxes, municipal taxes, etc. This past year they have grown dramatically, and will have generated even more income taxes, franchise taxes, muni…
But hey, at least we got thousands of clicks from outraged people about tech companies not paying taxes? KPIs met! Win!
Re: Zoom will pay zero federal taxes due to tax credits from previous years
#10Really rich people will always find some way to get loopholes enshrined in law or find a foreign country willing to do it.
There is no way around. The only people paying disproportionately more in taxes are middle class people. Incidentally that also helps rich people by having less competition at the top.
If you want fairness, no-one should be forced to pay taxes, everyone should pay for the services they use and there should be no corruptible centralised entity who can decide for everyone.