[Random-bits] Kathleeen Pender: Cisco and Microsoft Didn't Pay Any Federal Income Tax

[James Love]

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2000/10/09/MN3707.DTL

   Kathleen Pender, Chronicle Staff Writer 
                                   
   Monday, October 9, 2000 

   Giant Cisco Didn't Pay Any Federal Income Tax 
   Businesses get break on employee stock options

SAN JOSE -- Cisco Systems, the second-most valuable company in America,
paid no federal income taxes for its latest fiscal year thanks to a
little-known corporate tax break on employee stock options. 

Microsoft, which ranks No. 4 in market value, did not pay any federal
taxes either, it seems. 

Like many high-tech firms, Cisco and Microsoft are allowed to take a tax
deduction for money their employees earn when they ``exercise'' options
andbuy stock in the company at a preset price. 
 
   [snip]


-- 
James Love  mailto:love@cptech.org http://www.cptech.org
Consumer Project on Technology, P.O. Box 19367, Washington, DC 20036
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