[dragonwriter]

> Firstly, 55% is not greater than the maximum tax rate one could pay on income

But it is, AFAICT, greater than the maximum marginal income tax rate [0]; since the deduction affects only income taxes and not other taxes on income, it is the maximum marginal income tax rate, not the maximum marginal rate of taxation on income, that is relevant.

> Secondly, you understand that RSUs (restricted stock units) are taxed as normal W-2 income at the time of vesting

Yes, I do. That doesn't change anything I said. People that are making hundreds of millions of dollars of income in a year aren't making it from RSU vesting, or any other source of income subject to regular income taxes.

[0] just barely; the maximum marginal income tax rate in any US jurisdiction seems to be 39.6% federal + 13.3% CA state + 1.5% SF local, or 54.4%.

[Denzel]

Uhm, they do make significant (>$40MM) amounts of money from cash+RSU compensation. [1-5] That's literally what you can find with a cursory search; no digging. Furthermore, the tax writeoff carries through 5 years since it was a stock donation.

And sure, use 54.4% instead of 55%. Don't miss the forest for the trees though.

[1]: http://www.cnbc.com/2017/04/28/google-ceo-sundar-pichais-com...

[2]: http://money.cnn.com/2015/10/14/technology/twitter-omid-kord...

[3]: http://www.marketwatch.com/story/googles-sundar-pichai-is-li...

[4]: https://www.sec.gov/Archives/edgar/data/1288776/000130817913...

[5]: https://www.sec.gov/Archives/edgar/data/1652044/000130817916...