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Below is exactly how futures are taxed. Open trade profits are taxed at the
end of the year.
The companies should have known the tax laws and set things up to protect
their people. I don't get a bailout if I make a mistake in my estate
planning, business spending etc. Their are plenty of accountants/tax
lawyers/financial planners who could have warned the option owners about
their liability. Simply, they thought the stocks would continue to roar
forever, so they did not plan. The options were given as a way to avoid
taxation. Now that the worst has happened, they want to be bailed out by
the American taxpayer. Mr. Hall has gone so far as to look down on a
majority of society with contempt for, "those who neither took the risk nor
the time to get educated nor worked to make the money.", as though no one
outside of technology, nor anyone without a college education works hard.
Seems to me Mr. Hall and the like should have spent some of their 14 hour
days learning the tax code or finding the telephone number of a competent
accountant.
I have sympathy for those who will be financially ruined by this. However,
I, unlike Mr. Hall, also have sympathy for those who do not receive a
college education and for those who toil a lifetime in poverty.
Nonetheless, I don't see how the taxpayer should be responsible for the poor
financial planning others. Mistakes were made and the price will be huge;
unfortuately however, such is life.
sb
----- Original Message -----
From: "John Hall" <jrhall@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, June 23, 2001 10:33 AM
Subject: Re: [RT] Tech workers upset that they owe taxes on underwater
options
> 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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