Election 2015: NDP and Liberals Want to Tax Stock Options 100%
October 8, 2015 Leave a comment
Another day, another foolish campaign policy proposal.
This time, the NDP and Liberals have proposed one of their dumbest policies yet: 100% tax on stock options, instead of the usual 50%.
They think they are being clever and that this provides a clever way to “tax the rich,” but this proposal is pure failure and reveals disheartening ignorance among our would-be rulers.
If they do this, it is expected that corporations would be able to deduct stock options as expenses.
Net impact on government revenue? Virtually nothing, or less revenue overall.
But what if they tax options at 100% and they disallow the deductions? Then won’t the Liberals and NDP prevail and get more money while sticking it to “rich” people?
Hardly. Stock based compensation would simply switch to deferred stock units, restricted stock units, or something similar.
The CFOs of companies sophisticated enough to have compensation plans with stock options are smarter than the lawmakers. Forget it.
This silly proposal also ignores the countless middle class taxpayers who get stock options as a meaningful chunk of their compensation. There are many companies where even the lowest level corporate grunt job gets stock options. This proposal would hurt the middle class and it’s delusional to think it would bring in more revenue.
What a bunch of fools.
— Read more at CBC.ca —