High-tech employees would benefit under a bill introduced by Rep. Zoe Lofgren, D-Cal., in the House on Thursday. In the latest tech-related tax bill to be introduced, Lofgren proposes taxing the actual sale of stock, not the exercise of stock options. "The high-technology industry has long compensated its employees with stock options. Unfortunately, many individuals have incurred an enormous tax liability because they exercised their stock options," she said, noting letters from her own Silicon Valley constituents. "Given the market recently, these people ended up completely out of luck--not only did they end up with stock not worth much, they are also responsible for the taxes on the exercise of their stock options." The Bush administration's $1.98 billion tax cut is now working its way through Congress, and some tech-related bills may be attached.
"The high-technology industry has long compensated its employees with stock options. Unfortunately, many individuals have incurred an enormous tax liability because they exercised their stock options," she said, noting letters from her own Silicon Valley constituents. "Given the market recently, these people ended up completely out of luck--not only did they end up with stock not worth much, they are also responsible for the taxes on the exercise of their stock options." The Bush administration's $1.98 billion tax cut is now working its way through Congress, and some tech-related bills may be attached.