if the CEO gets 1,000,000 in stock options he pays income tax rates on that 1,000,000.*
Depending on how the option is set up, the grant is neither a taxable event (NSO) nor a taxable transaction (ISO). Your understanding of this point is flawed, which makes the rest of your argument suspect.
You're still wrong. Let's look at this since you claim that your Wikipedia sources are unreliable.
Incentive stock options (ISO) receive special tax treatment:
The grant is not a taxable transaction.
No taxable events are reported at exercise; however, the bargain element of an incentive stock option may trigger alternative minimum tax (AMT).
The first taxable event occurs at the sale. If the shares are sold immediately after they are exercised, the bargain element is treated as ordinary income.
The gain on the contract will be treated as a long-term capital gain if the following rule is honored: the stocks have to be held for 12 months after exercise and should not be sold until two years after the grant date. For example, suppose that Stock A is granted on January 1, 2007 (100% vested). The executive exercises the options on June 1, 2008. Should he or she wish to report the gain on the contract as a long-term capital gain, the stock cannot be sold before June 1, 2009.
If you bother to read my comments, it's not about the mechanics of stock options. It's about the tax rates between taking a $1M salary as earned income versus taking a one-dollar salary and stock shares as portfolio income.
When they're all robots, the cars would have been in communication rather than needed to predict anything.
Unless the car is infected with the A-HOLE virus, then it takes two parking spots for parking. Something that Hummer owners used to do at a job I've worked at.
You could have just saved us time and said you don't know what stock options are or how they work.
You could learn the difference between tax rates on earned income versus tax rates on portfolio income. Don't worry. Most Americans are not financially literate to know the difference and continue to pay higher tax rates.
Cause analyzing totally logical, deterministic machinery to determine what components of its fully documented system are out of spec is totally a job that's safe from being automated.
I've spent the last 20+ years in IT. My specialty is cleaning up other people's messes. No technology is ever perfect because it was designed, implemented and maintained by flawed people. Who do you think consoles hurt computers and fixes broken people?
Wrong question. Are you willing to adapt and change to the job market?
I've done software testing, help desk/desktop support, PC refresh, data center, and computer security over a 20+ year career. Shortest job lasted four hours, longest job lasted six years. If robots replace my job tomorrow, I'll get a job to maintain robots.
Turn around CEOs generally are experienced (i.e. loaded) and therefore could literally take zero compensation and not risk their lifestyle.
This has more to do with taxes on earned income. If a CEO takes a $1M salary, the top tax rate for earned income is 39%. If a CEO takes $1 salary and stock options, he pays no taxes on the earned income and the top tax rate for long-term capital gains is 20%. Whenever a CEO takes $1 salary, he's not doing it out of charity.
And once you are a professional and seeing people on wall street that are essentially salesman getting 7 figure bonuses while our 401Ks get decimated by their "management fees".
You have two choices in the matter. You can be a victim and complain about being ass-raped by Wall Street. Or you can be proactive and start your own corporation, make money in a brokerage account, and contribute $53,000 per year into a qualified retirement (nearly three times more than you can contribute with a 401K and IRA).
I'd like to also add that from the end of WWII to the beginning of the 70's, a college grad could walk into pretty a job upon graduation.
What happened at the beginning of the 1970's? President Richard Nixon took the US off the gold standard and inflation took off to devalue the dollar.
The new version is get a degree in a STEM field and you got it made is the new.... money major.
When I went back to college to learn computer programming and earn my technical certifications after the dot com bust, everyone told me I was crazy. Healthcare became the new money major. So everyone and their grandparents enrolled in healthcare classes. When I got started, I couldn't get a programming class because there were too many students. When I got done, I couldn't get a programming class because they weren't enough students. Even the Cisco courses got cancelled, which often had a waiting list to the waiting list.
Several of my friends went into the healthcare field. They make great money but are miserable in their jobs because they don't enjoy helping people. Which is ironic considering that some of my best paying IT support contracts are from hospitals. Although I don't make a lot of money, I do love the technical work. That makes all the difference in the world.
I'm always amazed that local school districts in California never have enough money to reduce class sizes, buy supplies and renovate buildings. But if a new football field was needed, money was always available and got built in a hurry.
Slashdot does purport to be a tech news site, last time I checked, and this is neither "news for nerds" nor "stuff that matters" (unless you are one of the vanishingly few that happens to work in higher education).
Hate to break the bad news for you. Not all Slashdot readers live in their mother's basement. Most of us worked in the Big Blue Room with the Big Yellow Light upstairs (a.k.a, Real World). Some of us financial wonks don't mind see an article or two on the economy.
Slashdot Mirror
if the CEO gets 1,000,000 in stock options he pays income tax rates on that 1,000,000.*
Depending on how the option is set up, the grant is neither a taxable event (NSO) nor a taxable transaction (ISO). Your understanding of this point is flawed, which makes the rest of your argument suspect.
no, I am still right. read your own link again
I seriously doubt that.
stock options do not work like that
You're still wrong. Let's look at this since you claim that your Wikipedia sources are unreliable.
Incentive stock options (ISO) receive special tax treatment:
http://www.investopedia.com/articles/optioninvestor/07/esoabout.asp
Why would it? Apple isn't going to go bankrupt if a judge rules one way or another.
Stock options do not work like that.
If you bother to read my comments, it's not about the mechanics of stock options. It's about the tax rates between taking a $1M salary as earned income versus taking a one-dollar salary and stock shares as portfolio income.
It reduces the chances that your planet will be obliterated by the Vogons for an intergalactic highway construction project
When they're all robots, the cars would have been in communication rather than needed to predict anything.
Unless the car is infected with the A-HOLE virus, then it takes two parking spots for parking. Something that Hummer owners used to do at a job I've worked at.
Do you happen to tally votes for a living ?
OP must work for Wall Street. The stock market had predicted nine out of the last five recessions.
Neither school buses nor soccer moms ever yield in traffic.
We are not just used to take it into account.
It's called society. People who don't take it into account are usually the "rugged individualists" who proclaim that they don't need society.
You could have just saved us time and said you don't know what stock options are or how they work.
You could learn the difference between tax rates on earned income versus tax rates on portfolio income. Don't worry. Most Americans are not financially literate to know the difference and continue to pay higher tax rates.
Cause analyzing totally logical, deterministic machinery to determine what components of its fully documented system are out of spec is totally a job that's safe from being automated.
I've spent the last 20+ years in IT. My specialty is cleaning up other people's messes. No technology is ever perfect because it was designed, implemented and maintained by flawed people. Who do you think consoles hurt computers and fixes broken people?
This becomes a sick joke when two billion people want to say it.
What makes you think that "two billion people" want a job in IT?
What jobs are safest?
Wrong question. Are you willing to adapt and change to the job market?
I've done software testing, help desk/desktop support, PC refresh, data center, and computer security over a 20+ year career. Shortest job lasted four hours, longest job lasted six years. If robots replace my job tomorrow, I'll get a job to maintain robots.
The robots wanted better working conditions and got replaced by humans. Damn corporations!
Choice and game is your word or world - is getting rich the best you can do?
I've already achieved contentment. Structuring my finances to take advantage of the tax laws is common sense.
...and that is the American Republican Delusion right there.
No, that's how the tax code is written. Play the victim game and stay poor. Play the corporation game and get rich. Your choice.
The alpha testers have it worse with the ritual sacrifices, drinking of blood and dancing naked with the spaghetti code.
Turn around CEOs generally are experienced (i.e. loaded) and therefore could literally take zero compensation and not risk their lifestyle.
This has more to do with taxes on earned income. If a CEO takes a $1M salary, the top tax rate for earned income is 39%. If a CEO takes $1 salary and stock options, he pays no taxes on the earned income and the top tax rate for long-term capital gains is 20%. Whenever a CEO takes $1 salary, he's not doing it out of charity.
Sure, this might be insightful if you're the kind of "financial wonk" that got their expertise from reading MSN Money.
I have a subscription to The Wall Street Journal. I'm here for the mind-blowing discussions.
It's just more click-baiting nonsense about "You should be *OUTRAGED* that these other people make more money than you."
If you don't like the content, why are you adding comments to the discussion? Be part of the solution, not the problem. Submit what you want to read.
Now get off my lawn.
Sorry, bud. The goatse posts were more frequent back in the day. I may have seen one or two in 2016. That's an improvement.
And once you are a professional and seeing people on wall street that are essentially salesman getting 7 figure bonuses while our 401Ks get decimated by their "management fees".
You have two choices in the matter. You can be a victim and complain about being ass-raped by Wall Street. Or you can be proactive and start your own corporation, make money in a brokerage account, and contribute $53,000 per year into a qualified retirement (nearly three times more than you can contribute with a 401K and IRA).
Fine, then go to a DIFFERENT website.
I have a subscription to The Wall Street Journal. I'm here for the mind-blowing discussions.
This is scope creep and anyone here that's been up to see "the real world" should despise scope creep for the evil that it is.
If you don't like the content, why are you adding comments to the discussion? Be part of the solution, not the problem. Submit what you want to read.
I'd like to also add that from the end of WWII to the beginning of the 70's, a college grad could walk into pretty a job upon graduation.
What happened at the beginning of the 1970's? President Richard Nixon took the US off the gold standard and inflation took off to devalue the dollar.
The new version is get a degree in a STEM field and you got it made is the new .... money major.
When I went back to college to learn computer programming and earn my technical certifications after the dot com bust, everyone told me I was crazy. Healthcare became the new money major. So everyone and their grandparents enrolled in healthcare classes. When I got started, I couldn't get a programming class because there were too many students. When I got done, I couldn't get a programming class because they weren't enough students. Even the Cisco courses got cancelled, which often had a waiting list to the waiting list.
Several of my friends went into the healthcare field. They make great money but are miserable in their jobs because they don't enjoy helping people. Which is ironic considering that some of my best paying IT support contracts are from hospitals. Although I don't make a lot of money, I do love the technical work. That makes all the difference in the world.
I'm always amazed that local school districts in California never have enough money to reduce class sizes, buy supplies and renovate buildings. But if a new football field was needed, money was always available and got built in a hurry.
Slashdot does purport to be a tech news site, last time I checked, and this is neither "news for nerds" nor "stuff that matters" (unless you are one of the vanishingly few that happens to work in higher education).
Hate to break the bad news for you. Not all Slashdot readers live in their mother's basement. Most of us worked in the Big Blue Room with the Big Yellow Light upstairs (a.k.a, Real World). Some of us financial wonks don't mind see an article or two on the economy.