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varenctoday at 3:22 AM0 repliesview on HN

Isn't this already a problem in many situations? If you exercise your options when you quit, pay only a very small strike price, but acquire private shares with a much larger fair market value, in the US at least you'd owe the IRS a lot of money but have no liquidity to pay it. Though this new tax would make that a yearly problem instead of just a problem when you exercise. (and mean that early exercise doesn't let you avoid it)