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Originally Posted by Cynthetiq
actually, he increases the social fabric and community of another location. If you look at the local economies of the growing outsourced places, Indonesia, Malaysia, China, India, the people taking these jobs are increasing their lifestyles. The middle class is growing in both those countries.
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But they still can't buy ipods or mac laptops or any other product made in the US at our prices. Yes, making them work and be part of a global economy has prevented possible wars and other problems, but if there is a depression in the US, it will effect the rest of the world much more.
I used Steve Jobs just as an basic example. He does deserve the credit and money for making Apple the success it is. Insider trading always has implecations on the price, but I am concerned about taxes. If all of the stockholders lose money, I guess their loss taxes and capital gains taxes would be effected.
I do like the dividend idea, it would prevent CEOs of failed companies from having a multi-millionaire lifestyle after their company tanks. Most of the time CEOs probably sell off their stock to diversify their accounts.
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Originally Posted by pan6467
Basically what it boils down to is this, Jobs or any CEO is given those shares as compensation, they are not taxed until they are sold. As a director of the company and it being considered compensation, it is taxed as such, not as a capital gain or any other type.
As for putting up your capital on a starter company and then going with an IPO and watching that percentage rise.... that is taxed as a capital gain, I believe since it was an investment and not compensation.
I maybe wrong and I am sure we'll have clarification, but I believe that is pretty much the basics.
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That makes sense. Now, if the company board gives the CEO $1 million in stock that gets taxed at the income level when sold (~38.5%, I think), is this a way around medicare/social security taxes? If the board gave the CEO a salary of $1 million, there would be a bunch of other taxes, right?