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Politics : Ask Michael Burke
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To: Richard Nehrboss who wrote (44573)1/25/1999 11:19:00 PM
From: Mike M2   of 132070
 
Richard, did you catch Earlie's point on the tax benefit derived from an item that does not show up as an expense on the income statement. To the extent it reduces taxes paid reported earnings are increased. This of course is in addition to compensating your employees without having the expense show up on the income statement. While there may be some legitimate issues with respect to how to determine the actual cost the current method treats options as if they have no cost. They do have a cost but shareholders don't care in a mania. Message 7472586 See the Forbes article that I linked I feel he did a splendid job explaining it. Somewhere I have a comparison earnings growth comparisons between the reported profits of companies and the National Income and profits accounts numbers published by the Commerce Department. Does anyone want to hunt it down on the Net?. Mike
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