Comment on But how would they be able to live on that?

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jj4211@lemmy.world ⁨6⁩ ⁨months⁩ ago

They are counted as income. When company grants stock, it appears in W2, for example.

The rub is when their extrapolated value changes, and this would be fine if they sold, as there is a tax system for handling that too, but there are gaps with borrowing where they can game the system by borrowing against the value instead of selling. By needlessly living in debt, they can manage their tax burden in ways unavailable to mere mortals.

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