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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (55860)	8/13/2006 1:38:45 PM
From: KeepItSimple	Read Replies (2) \| Respond to of 213176

Because companies used to be able to take tax deductions equal to the amount of income tax that their employee paid when they exercised and profited from options. Yes, it's absurd, but that's the way it's done. They still do that- but now they have to expense options. Great deal, huh? The more options you give away to employees, the less tax you pay as a company. Give away enough options and you don't have to pay any taxes at all- like ebay or cisco did back in the bubble.. --------- Like you, I can't figure out how backdating options leads to the company owing higher taxes.