SCREWED: Senate Version of Tax Plan Has Special Tax for Silicon Valley Techies

 

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By Stephen Frank,  California Political News and Views

Mark Zuckerberg would like everyone in America to have a guaranteed income, free college tuition and a bed time wish.  The billionaires in Silicon Valley have demanded higher taxes in Sacramento and Washington, but used the tax code to make themselves even richer.  Now the U.S. Senate may give the techies their wish—higher taxes!

“Many Silicon Valley techies are partially compensated with stock options and RSUs.

Currently, stock options are taxed upon exercise and RSUs are taxed upon release of the underlying shares.

The current draft of the Senate Tax Reform Bill would tax stock options and RSUs upon vesting.

Fred Wilson,  a VC and principal of Union Square Ventures, explains:

What this would mean is every month, when your equity compensation vests a little bit, you will owe taxes on it even though you can’t do anything with that equity compensation.
In some ways that is like the Death tax—you pay taxes on the money you earn during your life time and when you die—you get taxed again on the estate you already paid taxes on.  End the hypocrisy—maybe a dose of reality is what Silicon Valley needs, to realize this is not a “virtual world”.

Related Article: SCREWED: Senate Version of Tax Plan Has Special Tax for Silicon Valley Techies


Stephen Frank

Stephen Frank: Is the the publisher and editor of the California Political News and Views.  Mr. Frank speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows and is a full time political consultant. http://capoliticalnews.com/

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