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But more valuable are the long-term incentive bonuses, which are paid in shares of stock and stock options and are based on earnings.

In addition to supporting high salary jobs, tech companies offer employees stock options, so the state benefits from taxing capital gains, the profit earned when the shareholder sells their stock for a higher price.

It also split the managerial class: You have CEOs and other top management getting rewarded with stock options, so they become completely aligned with the owners of capital.

Stock market volatility tends to depress initial public offerings and exercises of stock options, which are two important sources of capital gains that boost state revenues.

Mostly to reduce corporate and income taxes, companies tend to keep the cash components of their executives’ pay as meager as possible, as opposed to stock and stock options.