Senate Republicans have touted their tax bill as business-friendly, but technology start-ups — including Hyperloop One, Airbnb, Uber and Vimeo — are fuming over a provision that would make a major change to how stock options are taxed.
A key tool for start-ups to attract employees, stock options are currently taxed when they are cashed in. The Senate Republican tax bill, unveiled last week, would tax the options on the date they vest, meaning when the employee is allowed to begin cashing them in.
The difference is significant because employees often hold on to their options, hopefully until those options’ value rises with the growth of the company. Under the proposed change, employees could face large tax bills before they realize the income from cashing in the stock options to pay them.
Jim Puzzanghera, Contact Reporter
LA TIMES, November 14th, 2017
Read more here.
LA TIMES, November 14th, 2017
Read more here.
