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To: GVTucker who wrote (173063)	2/18/2003 8:44:11 AM
From: Amy J	Read Replies (1) \| Respond to of 186894

Hi GV, when companies issue desks and cube space to employees, I think employees should be taxed for this. If you think the issuing of the option for cube space doesn't have a value to the employee, I will find a Professor in Chicago that will sanguinely tell you there is indeed a market for cube space at the rate of $1.50/sq ft. So, this tool should be taxed. It would be illogical to consider otherwise. In fact, employees should be taxed for this benefit at the time of granting the desk and cube space --- and most definitely before they receive their first pay check too --- because that would absolutely guarantee only a certain class of workers could ever join positions --- those that already have the money. So, obviously college hiring practices would need to change - and be based upon the candidate's family wealth when graduating from college, not their individual intelligence, smartness, and enthusiasm. /* sarcasm turned off */ The biggest threat I see to corporate competitiveness is if employees are taxed on grant. Employees absolutely should not be taxed when the grant is made. Absolutely no reason would justify taxing a NCG fresh from school. Silicon Valley would definitely unite on this matter and find a way to (using VC-speak) "cram" that back down so it doesn't negatively impact the growth engine we have here - our work force. Off the top of my head, I'm not sure what startups would do, but probably kill stock option plans (if employees were to be taxed at grant) and then go to something like a 'consideration' (meant in the legal sense of fair exchange, not the English sense of pondering) of stock for past services with accelerated future vesting. Code 85 says that's taxable at exercise. New hires would have to wait until, say, a month of their hire for past services to be valid but keeping to future vesting that's not accelerated. RE: "And it has absolutely nothing to do with competitiveness." This biggest issue (which is the idea of taxing employees at grant) has absolutely everything to do with competitiveness. I guarantee you our VCs here won't tolerate anything that negatively impacts competitiveness. If employees are taxed at grant of options, then we will make changes in startup-land, that large companies will be forced to follow, or fall behind. Regards, Amy J