Do you agree or disagree with this statement and why?

The stock option rules in effect today create a problem because they allow corporations to report a much larger expense for this compensation to the IRS than they report to investors. The result is that corporations can report larger profits to investors (thus protecting or driving up the value of their stock) but smaller profits to the IRS (thus driving down their tax liability), undermining the fundamental fairness of the tax system.

This results in a stock option book-tax gap, the difference between how costs are reported on corporate books for financial accounting purposes versus how costs are reported on corporate tax returns for tax purposes. This book-tax gap has enabled corporations like Amazon and Netflix to overstate their stock option expenses to Uncle Sam and, thereby, collectively avoid paying billions of dollars in federal and state income taxes.