Category: Zuckerberg

Zuckerberg’s Tax Burden: $2 Billion and Done

EDWARD J. McCAFFERY, professor of law, Gould School of Law.

This op-ed originally appeared at CNN on April 9.

So, you think you have it bad this tax season. Have you heard that Facebook founder Mark Zuckerberg will pay between $1 billion and $2 billion in taxes? That sounds like a tough pill for anyone to swallow.

But it is premature to start a pity party for Zuckerberg. The twenty-something billionaire reaped large financial gains from exercising the stock options that triggered his tax bill, and he has benefited from favorable tax rules along the way. Even better, Zuckerberg will survive his encounter with the tax man in a position to never have to pay taxes again for the rest of his life.