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In 2025, Meta paid an effective federal tax rate of 3.5%

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Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#71

Post by kadabra9 »

shubhamjain wrote: post #14

Where is this figure coming from? According to Meta's press release, the effective tax rate is 30% [1]. > The full year 2025 provision for income taxes includes the effects of the implementation of the One Big Beautiful Bill Act during the third quarter of 2025. Absent the valuation allowance charge as of the enactment date, our full year 2025 effective tax rate would have decreased by 17 percentage points to 13%, co…

I'm shocked, absolutely shocked that a Bluesky post would be deliberately misleading to push a narrative that we need more taxes.

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#72

Post by candiddevmike »

mindslight wrote: post #30
candiddevmike wrote: post #10

Earlier quoted context omitted.

I'm SE and there are quite a few tax breaks available, especially if you structure as a S-Corp. The hard part is figuring out what all tax breaks are available as they're constantly changing, like last year you can deduct dental insurance premiums. I still pay an eye watering amount, and being SE shows you the brutality of the system (estimated taxes are insane, especially the payment schedule for them when you're NE…

> estimated taxes are insane, especially the payment schedule for them when you're NET 30/60 Total layman understanding here, but can you not do cash basis plus schedule AI?

Kinda, for Q2 and Q3 you're expected to pay the full amount for the quarter about a month or so before it ends. So it's less the accounting method kinda and more I haven't been paid for a month that I already owe taxes for.

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#73

Post by wang_li »

nmitchko wrote: post #4

Can someone make a startup that allows me to do this as an individual?

You don't need a startup. Millions of people have an effective tax rate that is 0% and they have a net tax rate that is negative. They do this simply by having no meaningful skills or knowledge.

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#74

Post by quietbritishjim »

loeg wrote: post #63
ovi256 wrote: post #48

Earlier quoted context omitted.

I bet the two sources won't agree on what values go into the denominator and / or numerator of their effective tax rate calculations. It can be as simple as the 3.5% being a calculated rate on revenue rather than profit

You can't just throw revenue in the denominator, though. Business tax is assessed on income. If you're going to make a claim about tax rate using an unconventional metric, you need to be explicit about what you've done; Reich isn't.

> Business tax is assessed on income.

Income (in a business) is another word for revenue. I think you meant: business tax is assessed on profit.

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#75

Post by philipallstar »

thinkingtoilet wrote: post #54
youknownothing wrote: post #25

As someone who ran his own business for over eight years paying close to 30% tax (and is soon going to do it again), I have very mixed feelings about companies using tricks to reduce their tax burden. I mean, I like it when I do it, and I feel justified because there isn't that much that I can claim tax relief from, but seeing a big company paying such low tax rate feels wrong (even though it may be completely legal)…

You're acting like the game is fair. The game is heavily rigged to favor large companies. This is by design.

Meta is a company created in the last 20 years or so. You can make more big companies if you don't make it really difficult to do so.

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#76

Post by stetrain »

kadabra9 wrote: post #71
shubhamjain wrote: post #14

Where is this figure coming from? According to Meta's press release, the effective tax rate is 30% [1]. > The full year 2025 provision for income taxes includes the effects of the implementation of the One Big Beautiful Bill Act during the third quarter of 2025. Absent the valuation allowance charge as of the enactment date, our full year 2025 effective tax rate would have decreased by 17 percentage points to 13%, co…

I'm shocked, absolutely shocked that a Bluesky post would be deliberately misleading to push a narrative that we need more taxes.

I don't know why that's specific to one social media network. I see deliberately misleading posts on all of them.

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#77

Post by philipallstar »

loeg wrote: post #57
datsci_est_2015 wrote: post #50

Earlier quoted context omitted.

Interesting. Wouldn’t surprise me if there are different ways to report the same numbers to make the situation seem more or less favorable. Statisticians and accountants are both professional liars (speaking as a statistician married to an accountant).

> Wouldn’t surprise me if there are different ways to report the same numbers to make the situation seem more or less favorable. Yeah -- accurately, and inaccurately.

Can the post be community noted?

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#79

Post by shevis »

loeg wrote: post #63
ovi256 wrote: post #48

Earlier quoted context omitted.

I bet the two sources won't agree on what values go into the denominator and / or numerator of their effective tax rate calculations. It can be as simple as the 3.5% being a calculated rate on revenue rather than profit

You can't just throw revenue in the denominator, though. Business tax is assessed on income. If you're going to make a claim about tax rate using an unconventional metric, you need to be explicit about what you've done; Reich isn't.

Income != profit. Income is revenue. It sure would be nice if businesses were taxed on income, given that’s how people are taxed and all. Aren’t corporations supposedly people now thanks to citizens united?

Re: In 2025, Meta paid an effective federal tax rate of 3.5%

#80

Post by loeg »

quietbritishjim wrote: post #74
loeg wrote: post #63

Earlier quoted context omitted.

You can't just throw revenue in the denominator, though. Business tax is assessed on income. If you're going to make a claim about tax rate using an unconventional metric, you need to be explicit about what you've done; Reich isn't.

> Business tax is assessed on income. Income (in a business) is another word for revenue. I think you meant: business tax is assessed on profit.

No, my usage was correct and unambiguous. Describing income as revenue is incorrect. https://www.investopedia.com/ask/answers/122214/what-differe...
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