Examining the Tax Advantage of Founders' Stock

Polsky, Gregg D.; Hellwig, Brant J.
May 2012
Iowa Law Review;May2012, Vol. 97 Issue 4, p1085
Academic Journal
The article offers information on the tax advantage of stock of the founders. It mentions that the stock of the founders are tax advanced and enables executives to convert compensation income into stock appreciation taxed at rates for capital gains thus reducing tax by sixty percent. It adds improper treatment of the losses being the main reason for the tax advantage and stock as a partial move towards optimal treatment of losses


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