Everyone by now knows that Mark Zuckerberg will be one of the richest people in the world, but do you also know that he will have paid the highest tax bill of all time?
“Zuckerberg owns many shares outright, and in 2005 received options to buy 120 million shares of Facebook for 6 cents a share. The shares are currently valued at more than $40 a share” (Forbes, 2012).
How is this profit taxed? According to Forbes, it is taxed as the options are exercised the same way that one would be taxed for any sort of compensation, at the hefty tax rate of 35%.
$1,500,000,000 in federal taxes
$500,000,000 in state taxes. That’s a hell of a lot of zeroes.