Originally Posted by FloggingSully

As I understand stock options, the company would give you the option to buy X shares for $Y each. Y may be way below the current value of the stock. So if I'm a CEO of a company who's shares are selling for $100 I might decide that I'm going to pay myself some salary, say 100K/year and give myself the option to purchase up to 10,000 shares for $1. I shell out $10,000 to buy those shares and sell them the same day for a profit of $990,000 (assuming Sully can do math), I've now made just over $1 million (between salary and stock options) but I'm paying 25K in taxes since $990,000 of my compensation is capital gains (unless I'm wrong about stock options being capital gains).

If there is a way to get around paying taxes, rich people will find it.

I have heard of some companies giving stock to employees but I dont know about selling it to them at a reduced cost. I think that might be insider trading. I dont know anything about it so I could be completely wrong. IF anyone knows I would like an answer.

This is from the IRS website

Topic 427 - Stock Options

There are two types of stock options: statutory stock options and nonstatutory stock options. Generally, options granted under an employee stock purchase plan or an incentive stock option (ISO) plan are considered statutory stock options. Nonstatutory stock options are not granted under an employee stock purchase plan or an ISO plan. Refer to Publication 525, Taxable and Nontaxable Income, for assistance in determining whether you have been granted a statutory or nonstatutory stock option.

If you are granted a statutory stock option you generally do not include any amount in your gross income when you are granted or exercise an option. However, you may be subject to Alternative Minimum Tax in the year you exercise an ISO. For more information, refer to the Form 6251 Instructions. You have taxable income or deductible loss when you sell the stock you received by exercising the option. You generally treat this amount as a capital gain or loss. However, if you do not meet special holding period requirements, you will have to treat income from the sale as ordinary income. Refer to Publication 525 for specific details on the type of stock option rules, for when income is reported and how income is reported for income tax purposes.

If you are granted a nonstatutory stock option, the amount of income to include and the time to include it depends on whether the fair market value of the option can be readily determined. If an option is actively traded on an established market, the fair market value of the option can be readily determined. Refer to Publication 525 for other circumstances under which the fair market value of an option can be readily determined and the rules for when income is reported for an option with a readily determinable fair market value. Most nonstatutory options do not have a readily determinable fair market value. For nonstatutory options without a readily determinable fair market value, there is no taxable event when the option is granted but the fair market value of the stock received on exercise, less the amount paid, is included in income when the option is exercised. You have taxable income or deductible loss when you sell the stock you received by exercising the option. You generally treat this amount as a capital gain or loss. For specific information and reporting requirements, refer to Publication 525, Taxable and Nontaxable Income.

Originally Posted by UGLY

So what you are saying is competition works only if it is the government giving the competition?

Open up interstate insurance purchasing and lets see what happens, what is the worst that could happen, prices stay the same because they wont go up. But by all means dont do anything that the republicans present.

I believe tort reform would reduce the cost I dont know if it would allow for coverage of that many more people. But once again just shoot down reasonable solutions as naive and then claim the republicans have no ideas.

As far as the taxes are concerned I would say it would increase tax revenues because everyone has got to pay the taxes, everyone.

Some of the loopholes brought up earlier are easy to fix, tax fringe benefits such as cars (which they already are but most companies eat the cost. Tax deferred comp and stock options at the same tax rate as they would be taxed otherwise. The point is to leave no exemptions .

Goverment has really messed up Medicare and the VA. You buy into the low information bogeyman theory that your party espouses ad infinitum. Why don't we throw medicare patients and veterans out into the private insurance industry? Your party has one rep who tries to look at health insurance in a different way. I give him credit but it's ridiculous.

I just think that folfs like you don't give a crap about the 45-50 mil because they are not the right culture or color of the republican party. Any republican plan that does not address the uninsured, the deficit or the pre-existing condition should be thrown out on it's ear.

So yes, I don't pay attention to these simplistic "plans" that the GOP present. Republicans think a complex problem could be solved simply and loopholes can be closed. That to me is intellectually ridiculous.

I love the title of your thread though. Solutions? Their only solutions are to vote no and to filibuster. Once they stop saying no and allow democracy to take effect in the senate then I may think they would have so-called "solutions".

BTW, I don't agree with quite a few things in the two bills. It's too bad that republicans only strategy is to kill bills rather than come to the table with compromises. The Dems came to so many compromises amongst themselves that the bills are beyond confusing.

Originally Posted by washed up wrestler

Goverment has really messed up Medicare and the VA. You buy into the low information bogeyman theory that your party espouses ad infinitum. Why don't we throw medicare patients and veterans out into the private insurance industry? Your party has one rep who tries to look at health insurance in a different way. I give him credit but it's ridiculous.

I just think that folfs like you don't give a crap about the 45-50 mil because they are not the right culture or color of the republican party. Any republican plan that does not address the uninsured, the deficit or the pre-existing condition should be thrown out on it's ear.

So yes, I don't pay attention to these simplistic "plans" that the GOP present. Republicans think a complex problem could be solved simply and loopholes can be closed. That to me is intellectually ridiculous.

I love the title of your thread though. Solutions? Their only solutions are to vote no and to filibuster. Once they stop saying no and allow democracy to take effect in the senate then I may think they would have so-called "solutions".

BTW, I don't agree with quite a few things in the two bills. It's too bad that republicans only strategy is to kill bills rather than come to the table with compromises. The Dems came to so many compromises amongst themselves that the bills are beyond confusing.

I believe this plan addresses everything you mentioned especially the deficit. The uninsured could purchase insurance with health care tax credits.

WUW do you think that the republicans should just get on board with the dems even when they dont believe in the legislation at all and neither do 80% of the American people. If the dems would come to the table willing to negotiate a little bit maybe I would see your point. Lets see Obama, Pelosi and Reid come from the far far left closer to the center and I am sure something can get done. I dont know why the republicans would help pass something that nobody including the people wants.

We will see how willing the dems are to make a deal when they lose their large majorities in the congress.

Originally Posted by FloggingSully

How is that different than just buying stock? Other than being limited to when you can buy it?

She cant buy it at a reduced cost, she has to pay what the rate is.

Sorry WUW, I just can't resist. Since you seem to be the spelling czar, what in the world does "folfs" spell?