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[–] 3 points 2 months ago*

Most(many? Unsure of any exceptions) tax systems will tax on the dollar value of the compensation. It can lead to very awkward situations if the value of the compensation is variable.

Some people have been paid in stock, only for the stock to lose its value, yet the tax man only considers the original value. So I you get paid 1M in stock, and it craters, you still owe the tax man 300k (assuming 30% tax rate). The flip side is also true, if it goes up you still only owe 300k.

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