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Non-Tech : Who Really Pays Taxes?
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To: Win-Lose-Draw who wrote (321)8/15/2000 11:49:21 PM
From: Lizzie Tudor  Read Replies (1) of 666
 
It's only when the options are cashed out (exercised and sold in what is basically one transaction) that it looks like income.

Thats a myth, did it used to be that way? Must have been. You pay the tax on the entire gain as income when you exercise. You do not have to sell.

Anyway, a minor issue in the general scheme of things, I was just trying to point out that the current tax code is very unfair on a lot of levels, this is one and (surprise) the people here, who are investors, think this is unfairness is ok, based on some rationalization they come up with. Thats why the tax code is what it is.
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