The post 2021 rules don’t change how it’s taxed just how much is taxed. Still employment income. And the CCPC rules defer the tax until it’s sold but don’t change the nature of the income.
I don’t think the cap gains inclusion rate changes that.
No, and that's precisely why compensation for CEOs is often deferred from salary to stock: to dodge personal income taxes. The idea that capital gains personal taxes stifle innovation is bunk economics backed by zero data.
There were so many loopholes – this was very specifically targeted at the 1%.
So yes, they are taxed as employment income. So the changes to the capital gains rules wouldn’t impact them.
There are two windows: pre and post 2021. And I fear you are ignoring the CCPC rules. Here's a more detailed series of scenarios. https://ca.rbcwealthmanagement.com/documents/634020/3210246/The+Navigator+-+Taxation+of+Employee+Stock+Options.pdf/91b23adb-8d2e-4966-b7e5-3888d6ad8a81#:~:text=Future%20appreciation%20or%20depreciation%20of,a%20capital%20gain%20or%20loss.
The post 2021 rules don’t change how it’s taxed just how much is taxed. Still employment income. And the CCPC rules defer the tax until it’s sold but don’t change the nature of the income.
I don’t think the cap gains inclusion rate changes that.
There is still capital gains treatment on a portion of the value created. Plus the other equity grant tools used to provide employee lift.
Aren’t stock options taxed as ordinary income?
No, and that's precisely why compensation for CEOs is often deferred from salary to stock: to dodge personal income taxes. The idea that capital gains personal taxes stifle innovation is bunk economics backed by zero data.
There were so many loopholes – this was very specifically targeted at the 1%.
A few scenarios assessed here:
https://richardcannings.ndp.ca/news/capital-gains-taxes
I was focused on the impact of the proposed changes on the Innovation Economy, not CEOs or Board Chairs of large public companies.
https://www.ig.ca/en/insights/how-are-stock-options-taxed-in-canada
Their agenda’d incompetence is sickening.