Replies to post #4484 on Intel Corp (INTC)

[DewDiligence]

Following up: the potential drop in tax collections from GAAP expensing of options is relatively small. That’s because a lot of the cost of issuing options already is deductible as an expense for tax purposes, even though not recognized as an expense under GAAP.

The disconnect between accounting rules for income-tax purposes and accounting rules in shareholder reports is a major impetus for the changes we have been discussing.