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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.04-0.3%Nov 26 3:59 PM EST

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To: RetiredNow who wrote (60269)7/12/2002 1:46:59 PM
From: Lizzie Tudor  Read Replies (1) of 77400
 
As far as the other options overhang, that is a concern, but I don't believe those should be expensed. My own personal opinion is that in the money options should not be expensed until a gain is realized.

You would think that an accurate reflection of options as a cost to the company would be the objective of all these proposals in congress. Nah that would be asking too much.

The last time stock related legislation came down (96- I believe), it resulted in the disastrous law we have now where rank and file employees are taxed as income when they want to exercise their options. The difference between the exercise price and current price is taxed with all the government boondoggle programs since this is regular income. At the same time, the cap on medicare was removed, so exercising stock options, even if you want to hold your stock, can mean thousands paid into medicare in one year. This is the only case I can think of where people are taxed if they want to *buy* stock. Passive investors, who take the same or less risks with the same stock, get capital gains treatment.

Here we go again. Who is the politician that is proposing an accurate approach to expensing options would you say mindmeld?
L
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