this week. facebook seems to be getting out of federal and state taxes for 2012. you heard that right. on top of that they expect a hefty refund. it sounds outrageous to many americans but tax experts say there are loopholes that make it legal. peter doocy takes a look. reporter: facebook s profits in the u.s. last year, $1.1 billion. combined income tax bill, zero dollars, they will get a refund of $429 million thanks to one tax deduction for executive stock options. employees cash in the stock options and at that point there is a tax deduction for the company because even though it didn t cost facebook a nickel they treat it as wages and they get a deduction for it. usually it doesn t wipe out a whole tax bill but many companies get big breaks. reporter: they will get more
commercial, where is the beef? heather: where is the beef? how are we going to pay for it? we appreciate your time. thank you. kelly: new questions over what appears to be a multimillion dollar tax break for facebook. raking in over a billion dollars in the united states alone last year but didn t pay any income taxes. why tax experts are saying it could be because president obama has a double standard? heather: and chuck hagel is the president s pick for defense secretary but he ran into a tough and unprecedented roadblock on the way to the cabinet. we ll look at what this means for his confirmation going forward. the putting and the obama administration. there are solid public policy differences between members of this side of the aisle and the nominee. this is not about politics, this
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deducting executive stock ongiv before it went public. right. kelly: what does it say 0 other corporations and taxpayers out there about our tax system? well, they re following the rules, kelly. everything at facebook is doing is perfectly legal. it s on the books, and i wouldn t blame them or any other successful corporation for wanting to minimize the tax exposure. if you falsely come to a point, and paying a large amount of taxes talk about being patriotic. when a company like facebook makes a billion dollars that benefits the economy, it doesn t cost the economy. and not only for their company and shareholders, but the economy at large. kelly: it benefits the economy. and how does it benefit particularly those who go to work at an average job and paying our taxes? well, and using facebook, that s the point. kelly. facebook creates a tremendous amount of value and tremendous