|Biden is a pandering idiot.|
That "new tax code" was passed 26 or more years ago.
This started in 1993 when a combination of Bill Clinton and Newt Gingrich, and Congress, passed a limitation on the deductibility of salaries over $1,000,000/year. In response, companies issued more stock to tie compensation to stock gains realized. If stocks go down, they expire. If they go up, they value them on the front-end using a measurable expectation, usually using a Black-Scholes valuation, as granted. But if the gain is a lot, they have to look when they vested, and the employee pays more taxes due some time later, possibly the end of tax year of vesting plus time to the next April 15. To match gains and expenses, the company gets a tax deduction then for the other side of an employee or even a director exercising for a gain. Those negative costs can be seen in a Statement Of Cash Flows.
It's a significant offset to a company when options rise in value and vest with a gain for the shareholder.
Apparently Biden only looks at the employee side, or doesn't even see that, and is surprised that Amazon and many other companies get the losses (deductions) from employee exercises when a stock rises. They also get instant deductions for capital expenses (current law), for warehouses and sortation centers they operate, and even for the towers they've built around Seattle and the world.
The WSJ today asks and then answers some of these questions by the pandering candidates who want employees to gain, consistent with a socialist model, and for the companies to build and lose, what he is aiming for, until he gets nominated, and remembers what he's running for.