Simple tax math:
Sale of 38,500,000 shares @ .05 (today's pps) = $1,925,000
1- Ed could take that amount ($1,925,000) out of the company as a salary as some people are suggesting he should do rather than sell shares (which we don't even know what his intent is). Using 2013 tax calculations - assuming he files single and no deductions to make it simple. Income tax would be $733,172
2- OR take a $1 salary and sell the shares and only take capital gains tax of $457,502 since they are held for over 1 year. That equals a tax savings of $275,670
Now ask yourself what you would do if you were in Ed's shoes? Pretty easy to decide. You are right on Tates. Everyone can relax now and enjoy the ride up to .10
