Posted on 02/27/2020 7:44:39 AM PST by karpov
Sen. Bernie Sanders (I, Vt.) would sharply curb the tax benefits of executives’ retirement plans and require earlier taxation of stock options in a proposal that could dramatically alter compensation at major U.S. companies.
In a plan set to be introduced Thursday, the front-runner for the Democratic presidential nomination cited a forthcoming Government Accountability Office report. That analysis found executive deferred-pay plans at the 500 biggest publicly traded companies totaled about $13 billion in assets in 2017, just considering the top few executives at each company, or about 2,300 people.
Chief executives typically had higher account values than other executives, averaging $14 million apiece—but some have executive-retirement plans topping $100 million, according to securities filings.
“It is outrageous that the wealthiest corporate executives in America get unlimited, special tax privileges on hundreds of millions of dollars in savings, while ordinary workers can only get tax deferment of up to $19,500 on their 401(k)s,” Mr. Sanders said
...
The proposal would also change how and when stock options are taxed.
Currently, recipients are taxed on so-called nonqualified stock options when the options are exercised, or converted into ordinary shares. Then, the company can take a deduction for the value and the employee generally must include the value in income.
The proposal would change that for highly compensated employees, or anyone making over $130,000 in 2020. Instead, the taxable event would happen when the options vest—that is, once the employee can choose to exercise them, even if the exercise doesn’t happen.
For employees, that change would trigger an income-tax bill even if they haven’t generated any cash by selling shares. In at least some cases, options recipients could be taxed even if they were “underwater” on the securities, Mr. Willens said. Companies would likely change their stock-options practices in response.
(Excerpt) Read more at wsj.com ...
He just lost rich Democrats. They don’t buy his income redistribution.
Next he will tax the IRA deposits in YOUR account “early”, prior to RMD’s. Why, because there just isn’t enough money to pay for his programs.
It’s frightening how many fools support Sanders. It’s a very bad sign.
Not enough money in there. He’ll need to go after 401k, IRAs, and 529s.. because only rich people can save money.
There’s nothing like charging people taxes on their options when they are “under water.” You have a paper loss, but owe taxes anyway!
Most millennials are too brain-dead stupid to understand that, so they’ll vote for Sanders anyway.
I never knew I was an “executive”
Only someone who has never had to work for a living would say that.
Remember, just like 7 years ago Democrats all said they wanted to secure the border and were opposed to gay marriage. They lie but once the issue is out there and gets even a smidgen of traction they go all in.
“They don’t buy his income redistribution.”
Oh they do as long as it flows towards them. If the money flows away then they are appalled.
Can’t read the article unless I buy the WSJ.
Great numbers of the vast unwashed, who have never owned a stock, will stand-up and applaud this.
Sorry guys, I’m just the messenger.
Bernie is a disgusting communist. It’s sad that we have so many greedy and envious leftists that Bernie is actually a viable candidate. I miss the days when patriotism was correctly recognized by almost all Americans as a virtue.
The scale of the monumental economic disaster his unfortunate election would unleash upon the richest nation on earth is unfathomable.
True national suicide.
So you pay taxes on stock you haven’t cashed in, with money you don’t yet have.
And then a year later, the stock craters (a la Enron), and goes down to Zero.
So you end up paying taxes on money you never got.
Great Idea!
You'd think that would be true. But, an awful lot of well-off Democrats just lap this stuff up. Under the proposal this article is about, $130K is a threshold for special rich man taxation. Bernie wants to grind everyone down to the same level.
You earned it. Now Bernie wants it.
Bernie Sanders, the first Czar or the United States of America.
Be good little comrades now...
Breadline Bernie....I hope that sticks.
so, if un-exercised, but taxed, stock options eventually become worthless, or near worthless, does the IRS refund the taxes, Bernie? ... Oh, and if i have some magic beans and i get taxed on the putative value of said magic beans, but then they turn out to be ordinary, non-magic bean, do i get a tax refund, even if i can make frijoles refritos out of them to fill a couple of tacos?
“Tech employees have been major contributors to Sanders. They would “feel the Bern” under this proposal. “
they would deserve anything he did to them: lie down with dogs or communists, ...
“Next he will tax the IRA deposits in YOUR account “early”, prior to RMD’s. Why, because there just isn’t enough money to pay for his programs.”
more likely, IRAs would be abolished and their assets would be forceably transferred into some kind of nuevo socialist “investment fund” ... not kidding about this either, there’s been chatter from the fascist left for a few years about doing that very thing ...
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