CEO stock options give companies tax windfall

Discussion in 'Politics' started by rdean, Dec 30, 2011.

  1. rdean
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    rdean rddean

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    Thanks to a quirk in tax law, companies can claim a tax deduction in future years that is much bigger than the value of the stock options when they were granted to executives. This tax break will deprive the federal government of tens of billions of dollars in revenue over the next decade. And it is one of the many obscure provisions buried in the tax code that together enable most American companies to pay far less than the top corporate tax rate of 35 percent — in some cases, virtually nothing even in very profitable years.

    A stock option entitles its owner to buy a share of company stock at a set price over a specified period. The corporate tax savings stem from the fact that executives typically cash in stock options at a much higher price than the initial value that companies report to shareholders when they are granted.

    But companies are then allowed a tax deduction for that higher price.

    CEO stock options yield tax boon for firms - Business - US business

    Wow, remember when you actually had to buy something to get a "tax break"?

    The power of Republican congressmen, the best politicians money can buy.

    And the base yells "Yea!" because they "earned" it.
     
  2. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Wow, if only Democrats had any power in government...if only!
     
  3. Skull Pilot
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    Skull Pilot Platinum Member

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    You do know that the people to whom stock options are given pay taxes on them don't you? http://www.smartmoney.com/personal-finance/taxes/employer-stock-option-tax-estimators-9303/

    Do you want two bites of the apple?
     
    Last edited: Dec 30, 2011
  4. Full-Auto
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    Full-Auto Gold Member

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    Repubs have controlled only two congresses in the past what? Hundred. Man up wussie.
     
  5. rdean
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    rdean rddean

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    For most of Clinton's term and for six straight years under Bush. Unfortunately, that's when the foundation was laid for all the damage we see today. It's not something you can really deny. "Reconciliation" anyone?
     
  6. eflatminor
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    eflatminor Classical Liberal

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    I'm sorry, are you suggesting that federal tax code which allowed this "quirk in tax law" was passed by Republican Congressmen and not Democrat Congressmen?

    I'm pretty sure any changes to the tax code requires passage by the Congress, not just the Republicans in Congress. Last time I checked, there have been both Dems and Repubs in power for some time.

    It would seem, once again, that you are full of shit.
     
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  7. paulitician
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    paulitician Platinum Member Supporting Member

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    ZING BOING!! :lol:
     
  8. paulitician
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    paulitician Platinum Member Supporting Member

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    I'm sure Obama's "Jobs Czar" GE CEO Jeffrey Immelt is very glad to hear this.
     
  9. eflatminor
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    eflatminor Classical Liberal

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    Of course, the tax code was last overhauled in 1986, when Democrats had control of Congress. My goodness your bullshit meter is off the charts today.
     
  10. bripat9643
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    bripat9643 Diamond Member

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    Sarbanes-Oxley requires corporations to list the cash-out value of stock options as a liability on their balance sheets. If that's the case, then they should also be allowed to list them as an expense on their income taxes.

    Liberal turds like you always want to have everything both ways.
     
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