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> "...shares are constantly being diluted by stock options granted to corporate executives, which were given a tax preference in 1981." 1. remove these tax pre
by clairity 6y ago
> "...shares are constantly being diluted by stock options granted to corporate executives, which were given a tax preference in 1981."
1. remove these tax preferences.
if we wanted to retain some of the incentive for startups, we could phase out the tax benefits based on the valuation of the company at time of grant. so a grant of stock options for a $1MM startup might grant you a tax preference, but not for a (mid-sized) $100MM company. (however, phase-outs need to be continuous functions to remove the gaming potential, and politicians hate that.)
2. remove the tax advantage of debt
3. remove carry-forward/-back losses
4. remove the separate capital gains/carried interest rates and all related exemptions (like 409's)
5. remove accelerated depreciation/amortization
and more. in short, remove tax loopholes, thereby dramatically simplifying the tax code.
- tandr 6y agoDo you know if there were there proposed bills to have these items addressed?
- clairity 6y agomy memory is dim, but my impression is 'not really'. outside of a vague sense of token efforts that died quietly, both major parties seemingly only pushed through giveaways to various lobbies in exchange for political donation/support. it's pretty easy to slip in such small, innocuous-seeming riders without much pushback because it takes more than cursory economic knowledge and real interest to work out the first-order effect, nevermind the higher order ones, or even pick them out of huge, drab appropriations bills in the first place. there doesn't seem to be a valued constituency on the other side to push through counteracting legislation however.
- tandr 6y agothank you