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A simple way to tax the rich
Sunday, March 25th, 2012
March 9, 2012
While income earned from stock options is deemed to be ordinary income under our tax laws, a special deduction was created in 1984 (paragraph 110(1)(d)) which allows individuals to deduct 50 per cent of the income derived from exercising stock options. That is, only half of the employment benefit from stock options is subject to tax… The purpose of paragraph 110(1)(d) was to encourage more widespread use of employee stock option plans… there is no evidence the deduction achieved its stated goals… the entire deduction should either be eliminated… or a holding period should be attached to the exercised shares in order to qualify for the deduction.
Tags: budget, ideology, tax
Posted in Equality Policy Context | 2 Comments »
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