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This sounds reasonable, however that subsidy/gain is already paid for with the employee's labor, which cannot be recovered. Paying taxes on what is essentially
by bsbechtel 10y ago
This sounds reasonable, however that subsidy/gain is already paid for with the employee's labor, which cannot be recovered. Paying taxes on what is essentially a guaranteed gain sounds reasonable, but when it is a gain earned by putting in labor over several years, I'm not sure this is the best solution.
- phamilton 10y ago> subsidy/gain is already paid for with the employee's labor Salary is gain paid for with labor, and it is taxed. I'm not sure I follow your point.
- bsbechtel 10y agoYes, salary is paid for with labor, but a reduced rate that is offset with compensation in the form of stock options. You're correct that it is taxed, and the capital gains rate is lower than the salary tax rate. My comment was more an observation, but the thought hadn't been fully fleshed out.