Posted on 02/28/2020 8:00:09 PM PST by karpov
Vermont Sen. Bernie Sanders just introduced legislation that’s raising alarms in Silicon Valley. But this time, it’s start-up workers, not Big Tech executives, who may be concerned.
Sanders and Sen. Chris Van Hollen, D-Md., introduced a new tax bill Thursday that would tax nonqualified stock options of more than $100,000 at vesting for private company employees making at least $130,000 a year. This means that instead of being taxed once they exercise their options, employees would be taxed on shares when they vest, even though they still wouldn’t be liquid assets. Employees who meet the tax threshold would be taxed on assets they haven’t yet accessed and possibly will never exercise.
Start-up employees are commonly offered stock options as part of their compensation packages. The idea is that the company’s future value could offset the relatively small salary its able to offer at an early stage. Employees have the option to buy stock at a set price once their options vest, with the hope that the shares will be worth more at the point of purchase.
The bill overall is meant to collect more taxes from CEOs and other highly paid executives, but tech industry representatives and even Silicon Valley Democratic Rep. Ro Khanna, the co-chair of Sanders’ presidential campaign, worry it will impact tech workers as well.
Khanna said in a statement to CNBC that “forcing employees in small start-ups to pay tax on stock before they have even had to sell it will hurt the start-up economy.”
“This will hurt the ability to distribute wealth creation more widely for all employees, including immigrants and outsiders. Ironically, it could lead to more concentration of wealth for the venture capitalists, executives and founders of companies. It may disproportionally affect the rank and file
(Excerpt) Read more at cnbc.com ...
Has Bolshevik Bernie Soviet Socialist Sahders come out against Trillionaires yet?
Millionaires are so pedestrian...
They’re only now alarmed?
Good grief ! What took these tech-nerds so long to comprehend ?
Bernie’s a full-fledged communist. If he’s elected, they’re out of business.
Stock option inequality!
Sanders is a dangerous moron.
Bernie’s math fairness.
Leftist coders are but a drop in the bucket compared to the Comrades that need more money.
Sanders et al CANNOT believe that FRee Americans are going to vote for his Communist butt!
Nice to see some uplifting news on here for a change.
Operation Chaos proposal—show up at Sanders rallies and start singing the Internationale:
https://www.youtube.com/watch?v=fdPAHqHZPwk
Bernie’s crowd will join in—and Bernie will freak!
I’m going to disagree with most Freepers on the high tech subject. I have a huge family and some of them work in high tech. Everyone of those overpaid assholes is anti Trump, which makes me hope they get replaced by cheaper labor.
Eventually America’s stock and real estate markets will lose 90% of their value sometime between 2030 and 2045.
Most of these high tech “workers” are dumber than rocks. They will vote for leftist most Rat available. Every time.
Bernard feels your pain. And he thanks you for making him a multimillionaire. Now get back to work serf.
If it's not written on the pages of Das Kapital, he doesn't know it.
I have worked for (salary and) stock options.
I have earned stock options.
I have been laid off with thousands of stock options not yet vested (after 9/11).
I wonder how easily I would get my paid taxes back from Ol’ Bern?
The Devil is in the details...
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