IF, that is, Zuckerberg doesn’t see the light and hi-tail it to Texas
As usual, the Governor’s office is overestimating revenue;
A sobering assessment was released Wednesday of California’s latest proposed budget: It shows the governor’s revenue expectations are far too optimistic.
Earlier this week, the nonpartisan Legislative Analyst said the $7-billion-per-year tax hike won’t bring in as much as he thinks. He says the governor’s proposed state budget will also fall short.
Complicating the equation, Taylor noted, is the challenge of predicting the tax effects of a major transaction that is expected to take place later this year: the initial stock offering of Facebook, a California company based in Palo Alto.
That offering, Taylor said, will be the largest ever and is expected to be four times larger than the 2004 initial public offering of Google, which generated $27 billion and produced a windfall of tax revenue for the state when company executives cashed in their stock options.
Read the rest from Timm Herdt
- $5 billion difference in state revenue estimates (sfgate.com)
- ‘Facebook Effect’ Could Boost California Budget, Analyst Says (businessweek.com)
- How Facebook’s Expected $100 Billion IPO Breaks Down [INFOGRAPHIC] (mashable.com)