Msg. 26025 of 65535 (This msg. is a reply to
26022 by
zzstar)
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And we can thank the Reagan people for this situation. Prior to the reign of Saint Ronald there was a limit beyond which corporations could not deduct, as a business expense, the compensation of executives. Also the value of stock options were not deductible at all as a business expense. And stock options are taxed as capital gains, which until recently, was at a maximum rate of 15% and while that has been recently raised, the rate is still much less than the marginal income tax rate.
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