With 'Super Options,' Employees, Too, Could Dodge Paying
San Francisco Chronicle (10/10/00) Vol. 104, No. 40 p.C1; Pender, Kathleen

There is a move swelling in Congress to expand the tax break that allows some of the nation's wealthiest companies to avoid paying most or all of their income taxes, which they do by deducting employees' stock option income. National Center for Employee Ownership director Corey Rosen says that some politicians want to create a new super stock option that would also give employees a break on option income, by exempting them from taxes until they sell the stock and by taxing their gain as a long-term capital gain if they hold the stock for more than a year. Companies would have to offer the super option to 70 percent of their workforces, but they would continue to get their deductions. The bill that would accomplish this is sponsored by Rep. John Boehner (R-Ohio) and is designed to encourage employees to hang on to company stock for the long term.


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