One thing I learned early by arguing with a small town mayor: “Taxation is never simple.” No one likes to pay taxes, and most will go to some length to avoid them.
It’s even more complicated when people can vote with their feet.
Why would I be surprised? I deal with this sort of stuff. I’m the one who pointed out to my fellow US employees that the way our foreign employer was proposing to issue options meant we would have to pay taxes TODAY on stock we didn’t own, might never own, and at best, wouldn’t see a dime from for at least 5 years. i.e. deferred income, but not deferred taxes! ACK!
After dealing with lawyers in 4 countries on 2 continents, the options were restructured in a way that we pay taxes more like normal options. But you’ll be interested to know that because these are foreign options, we americans will pay income tax, not capital gains. i.e. a higher rate.
So, yeah, I see this sort of lawyer stuff even when just trying to be fair.
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Oh, is this is why Kansas and Oklahoma saw an influx of businesses when they created highly attractive no-tax schemes? Oh, wait, they didn’t. At all. (In fact, pretty much the opposite happened.) Maybe because the availability of skilled workers and infrastructure are larger attractions than bullshit low taxes.
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I don’t know, Texas seems to be doing pretty well.
Sure, thanks to oil and a number of other things that have nothing to do with taxes.
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I can even accept that if it’s the original founder who staked his life on building the company and giving the employees their opportunities (100k is a decent opportunity). It’s when that founder-level compensation also goes to all the revolving-door CEOs that come afterward, make a speech or two, wave at a powerpoint, and then jump with their golden parachutes having risked nothing that it seems so crazy.
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I get the idea here, but like others have mentioned there will be ways around this. It looks like it is more likely to put a strain on your mid to large size companies compared to one the size of Apple. I get the theory of trickle down, but lets be realistic…that doesn’t happen because a lot of people are morally bankrupt. Yes, money has to come from somewhere, but unless you are prioritizing the pay and benefits of your employees it will likely float to the top and just be paid to the officers.
I’m not going to say the company I work for is the best, but a skilled welder can make a comfortable living, in fact with overtime they are usually making more than a lot of the office personal. Skillsets are worth something.
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