[joebasirico]

This slide deck makes me really uncomfortable.

1.8 Billion Active Users on Facebook in Q3 of 2020

Every user in the US brings gives Facebook about $40 in advertising revenue every quarter

Facebook made $21 BILLION dollars in advertising, just in Q3 of 2020

Facebook has an effective tax rate of between 4% (in Q3 of 2020) and 20% in Q4 of 2019.

You’re worth a bit less than $160/year to Facebook in advertising revenue. They made 70 Billion dollars last year, and have made almost 60B this year already (82% of what they made in 19). They are taxed in the low double digits.

My questions to you: - Did you get $160 worth of value out of Facebook? - What’s your annual tax rate?

My guess is it’s No to the first question and a lot more than 4% to the second.

[rlanday]

You seem to think that Facebook managed to get 2.74 billion monthly active users by providing a product that people don’t significantly value. 3.21 billion if you also count Messenger, WhatsApp, and Instagram.

[srtjstjsj]

$14/month is on par with other popular media sites like Netflix and Spotify.

Facebook employees and shareholders also pay tax on money they take out of Facebook.

[darkwizard42]

A 4% effective tax rate has a lot more to do with investment in R&D, declaring losses in accordance to the tax code etc.

The optics are terrible, agreed on that.

Regarding your first question, its not about how much value I get out of Facebook, since I'm not paying $160 for it, advertisers are paying for the ability to reach people.

[mhoad]

Let’s not pretend that Facebook isn’t ALSO involved in a lot of “technically not illegal but clearly unacceptable to the majority of society” tax avoidance strategies.

They aren’t unique in this sense but it’s just loophole after loophole and is the kind of thing that is at this point a textbook example of failed corporate/ social responsibility.

[zeroonetwothree]

The $160 is value to the advertiser I don’t see how it would have anything to do with the value to the user. Since FB is free if it gives you even $1 of value you may as well use it.

[mbesto]

> $160 worth of value out of Facebook

$13/month for WhatsApp is definitely worth it (if you take out the fact that its part of Facebook)

[Closi]

I also wonder if advertisers get value.

Have I been influenced to spend an additional $160? I’m highly doubtful but who knows!

[justapassenger]

It doesn't have to be additional spent. If coke can get you to buy their drink instead of pepsi, that's a dollar well spent, from their POV.

[cblconfederate]

What about the other 159?