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The problem isn't with the tax system, but the corporate system. Companies are giving out time-limited stock buying privilege to employees instead of direct ow
by jsprogrammer 10y ago
The problem isn't with the tax system, but the corporate system.
Companies are giving out time-limited stock buying privilege to employees instead of direct ownership. Additionally, some companies can even revoke the privilege through termination of employment agreements.
If employees were treated as full owners, there wouldn't be a problem.
- redshirtrob 10y agoI don't disagree with you that the problem is with the corporate system, but it's also made significantly worse by the unfavorable tax treatment. If the IRS didn't require you to realize gains on the spread when exercising, then a lot of these issues would dissolve. That's not to say folks wouldn't find other ways to restrict employee ownership.