Replies to post #4482 on Intel Corp (INTC)

[borusa]

Probably have alot more dividends and less options in that case. Or, means to cut corp taxes as per Bush wishes. Change can be disruptive.

[DewDiligence]

>> If there were to be a change in accounting rules that would result in lowering profits it would also result in lower taxes collected. I don't expect to see that happen. <<

Good point, but lower tax collections can be finessed by fine-tuning the regs for such items as the tax credit on R&D. There are probably dozens of ways it could be done without causing an avalanche of opposition. JMHO. Dew

[sgolds]

Elmer, since current law gives that tax deduction for the imaginary cost of the options, I will speculate that FASB can write the rule so that it is revenue neutral for the IRS. In other words, currently companies deduct the option 'cost' from their profits when they calculate taxes. With this rule change they would no longer be able to apply this deduction afterwards because it already applied before the profit number is established.

Now, I am certainly not a tax expert, just trying to understand the implications of all this. If there is a tax accounting expert who would like to chime in...