President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Start-ups are worried about one part of the Senate's tax reform proposal that would hurt their ability to compete: taxing stock options when they vest, instead of when they are exercised, as is currently done.
Companies, often Silicon Valley start-ups such as Twitter, typically compensate employees with the promise of being able to cash out on the company's stock in the future. Usually, the right to those shares is distributed over time, a process known as vesting. Stock options are currently taxed when they're exercised, or sold at a set price.
The Senate bill if it became law "would be the end of equity compensation in startups as we know it," Fred Wilson, managing partner at venture capital firm Union Square Ventures, said in a blog post Monday.
"If this provision becomes law, startup and growth tech companies will not be able to offer equity compensation to their employees," Wilson said. "We will see equity compensation replaced with cash compensation and the ability to share in the wealth creation at your employer will be taken away. This has profound implications for those who work in tech companies and equally profound implications for the competitiveness of the US tech sector."
The Senate's bill would tax employees on those shares even before their potential gain is realized. As a result, employees may owe taxes on something they only have the rights to and don't actually own.
"Generally it'll put a deep freeze on recruitment of the best talent into high-growth, innovative industries," said Leigh Drogen, founder and CEO of Estimize, a six-year-old company that collects and publishes financial estimates for data such as earnings. "There's no way you could hire the best talent to a start-up or high-growth company. It's just impossible."
Drogen said Estimize's roughly 20 employees collectively own about 15 percent of the company through stock options worth about $15 million in the next year or two. "That's an order of magnitude more than our payroll," Drogen said. The "risk they took to join us early on is dependent on that stock."
The Senate is set to begin discussing the proposal as early as Monday. A spokeswoman for the Senate Finance Committee did not immediately return a CNBC request for comment.
"It's really creating some heartburn in Silicon Valley," said Dan Clifton, head of policy research at Strategas. "There's some larger companies, not just venture companies, that are worried about this."
That said, the Senate's proposal on taxing stock options may not make it into the final tax law.
The House Republicans' tax reform bill would only tax stock options when they are liquid, rather when an employee exercises the options.