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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 170.90-1.3%Nov 7 3:59 PM EST

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To: Art Bechhoefer who wrote (121759)7/18/2002 5:56:24 PM
From: gdichaz  Read Replies (2) of 152472
 
Art: [ >> employees are subject to regular earned income tax rates for the difference between the option cost and the market price at exercise<<
sal, this seems a little confusing. ]

The taxing of the difference between the option cost to the person granted the option and the market price on the date of exercise as regular earned income may indeed be "a little confusing" as you say, or even unfair since several years may have passed, but it is current practice by the IRS.

A "fix" to the option situation could perhaps be found in how the company granting the option and the person to whom the option is granted are taxed - which seems designed to maximize taxes paid to the USG - and by hitting the individual, not the company.

Hopefully the question of options accounting and their taxation can be worked out in a calm atmosphere rather than the highly charged cirus atmosphere at present with both parties trying to position themselves in the best light prior to the November election.

Best.

Chaz

PS On a different subject, is tomorrow (Friday) the last day before option expiration for this month?
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