Comment: Re:Such systems have been proposed before (Score 1) 1064
Perhaps the corporation should be required to declare a taxable value for the options. This might discourage such compensation, and this discouragement might serve the public purpose. While the options or stock are not redeemed, they could be taxed to the recipient one time at a business rate with a business sized exemption. If the options become worthless, then a business loss can be declared.
A tax on compensation is not a tax on wealth. As pointed out already, there is a loophole here in the present code. No tax is ever collected on the money loaned against the stock, nor is capital gains tax collected on on the estate passed on to heirs.
