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.