The NDP plan on raising $500 million by removing the employee stock option tax benefit. They have stated they would keep the benefit in-tact for options granted by “early-stage companies”, but have not identified criteria for the term.

What is the Stock Option Tax Benefit?

Companies typically reward employees and high-level executives with stock options as an alternative to higher salary or a bonus. Presently, only 50% of the profit from a stock option sale is taxable, which is identical to how capital gains are treated. Under the NDP plan, 100% of the profit would be taxable, which some see as unfair since capital gains would be given preferential tax treatment.