Senator Carl Levin, D-Mich., has proposed closing a tax loophole that would give Facebook an estimated $3 billion tax break on stock options for CEO Mark Zuckerberg.

Levin has been pushing to close a number of tax loopholes and deductions, particularly for multinational corporations (see Senator Introduces Bill to Cut Tax Loopholes). Under current law, he noted, Facebook can tell investors, regulators and the public that the stock options Zuckerberg received cost the company a mere 6 cents a share. But the company can also file a tax return claiming that those same options cost the company something close to what the shares actually sell for later on, perhaps $40 a share.

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