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To: GVTucker who wrote (126013)1/25/2001 3:26:57 PM
From: Road Walker  Respond to of 186894
 
GV,

You are right, good article. But I don't think the California pols have the guts to do what needs to be done.

John



To: GVTucker who wrote (126013)1/25/2001 7:35:16 PM
From: Amy J  Read Replies (2) | Respond to of 186894
 
OT Hi GV (and Gary),

Why does Intel use non-quals? Is the gain to Intel that significant? What exactly is the amount of this gain - what type of write off is it and how does it work? And what is the potential earnings or price/share difference?

Also, I just saw Gary's post and he said that ISOs essentially turn into non-quals when they reach a certain dollar amount. Do you (or Gary) know the dollar amount and when this was enacted? I assume this is separate from AMT.

Also, I just read (in WSJ - Wed's section) that in 2003 ISOs will be taxed medi,soc sec, and unemp taxes. I wonder if fed/state taxation will follow? I mean, why do ISOs, if they will be taxed?

If there really isn't a tax gain for the employees, but only something to gain for the company, can an ISO plan be converted into non-qual plan? Or, maybe the answer would be to leave the old stuff alone/unchanged, but moving forward, simply issue a new stock plan that's a non-qual plan?

I understand that in the late-90's there were some tax proposals that would have made ISOs significantly less favorable for companies, but I had heard that those bills did not become law. In the mid-90's startups started issuing non-qual plans due to the anticipation of these tax law changes (that for the most part, didn't happen). And as of a year ago, most startups launched (I'm told) with ISO plans. However, now it sounds like things may have changed, if I understand your thoughts correctly on this.

Regards,
Amy J