LucyFerAdvocate t1_j7f3p85 wrote on February 6, 2023 at 9:34 AM

Reply to comment by Obvious_Chapter2082 in [OC] How Google makes money (its 2022 income statement visualized as a Sankey diagram) by IncomeStatementGuy

I thought the vast majority was capital gains from liquidating shares?

Obvious_Chapter2082 t1_j7fso0j wrote on February 6, 2023 at 2:13 PM

Most of it was exercising stock options, which are taxed at ordinary income rates

IKnowStuff t1_j7f4sve wrote on February 6, 2023 at 9:50 AM

Capital gains tax is part of income tax.

LucyFerAdvocate t1_j7f73u4 wrote on February 6, 2023 at 10:24 AM

Ah fair, I'm pretty sure it's not in the UK so I assumed it would be the same in the states

DataMan62 t1_j7jfpmn wrote on February 7, 2023 at 5:41 AM

No. Capital gains tax is very different from ordinary income tax. The greatly reduced capital gains rate IS EXACTLY what is wrong with the American system. If you work for a living, you have to pay income taxes on it all. If you live off daddy’s inheritance, you can sit on your ass and pay less than half the rate!!!!