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Kudos and high fives John,
You read my mind !
Michael: WL7BDN@xxxxxxxxxxxxx
----- Original Message -----
From: "John Hall" <jrhall@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, June 23, 2001 10:33
Subject: Re: [RT] Tech workers upset that they owe taxes on underwater
options
> Options are part of the compensation given to an individual for hard work
> and success. The companies determine who and how many options an
individual
> gets not the individual. Most people who received them worked 12-14 hours
a
> day 5-7 days a week. I was one of them. Most people who received options
> did not work hard because of the options in front of them, five years out
I
> might add. These are people who for the most part have spent a minimum of
4
> years in college to get a degree and additional time in training or
graduate
> programs. These people are not option babies.
>
> The problem is one of greed by our government who want taxes on
non-existent
> income. The options are non-quals which are not taxed at time of
exercise.
> The options given by most companies now do take out taxes at time of
> exercise. Once an individual purchases the stock from an options grant
the
> taxable is the difference between the grant price and the current value of
> the stock on the date of exercise. Once the individual sells the stock
> gained from options exercised the taxes are adjusted to what the "real"
> profit or loss is. Most of the options from these companies are either at
> the money or under water now. A lot of the people who exercised options
and
> did not sell at the height are under water from the exercise price.
>
> You should be pointing your finger where the problem lies with the Federal
> government, not the individual. Bottom line for me on this issue is a
> socialist tax system that wants to re-distribute wealth in this country to
> those who neither took the risk nor the time to get educated nor worked to
> make the money. A congress that is so greedy that they define un-realized
> gains as income. What's really interesting is that companies pay taxes on
> the options and anyone getting the options pays taxes on that same money.
> The governments double dipping.
>
> By-the-way Ira, if I follow your logic you should pay taxes each time a
> trade you are in shows a profit before you have closed out the trade.
This
> is regardless of the final outcome of the trade. You can adjust the taxes
> after the trade is closed.
>
> "One of the option babies who isn't under water."
> John
>
> ----- Original Message -----
> From: "Ira Tunik" <irat@xxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Saturday, June 23, 2001 7:42 AM
> Subject: Re: [RT] Tech workers upset that they owe taxes on underwater
> options
>
>
> > They couldn't even sell enough stock to cover the taxes. that is real
> greed
> > and now we are supposed to pay.
> >
> > Me wrote:
> >
> > > Driving the economy into recession and raising living costs to insane
> > > levels wasn't enough for the tech industry, now the option babies are
> > > upset because their stock options are underwater and they owe big
> > > taxes. Sheese. I know people who have gotten into this situation
> > > and it all occurred because they were greedy. They didn't sell their
> > > options at exercise time, instead choosing to hold onto the stock so
> > > they would pay less taxes down the road. Will Congress succumb and
> > > bail them out like AG has bailed out the big companies that made the
> > > wrong decisions?
> > >
> > > The Valley's Tax Revolt
> > > By Scott Harris
> > >
> > > Tech workers are taking a big tax hit on their stock options. Will
> > > Congress come to the rescue?
> > > http://www.thestandard.com/article/0,1902,27355,00.html?nl=int
> > >
> > > To unsubscribe from this group, send an email to:
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> > >
> > >
> > >
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> >
> >
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> >
> >
> >
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> >
> >
> >
>
>
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