Brilliant! California’s screwy budget relies largely on being able to rape Facebook IPO for taxes

IF, that is, Zuckerberg doesn’t see the light and hi-tail it to Texas

California, the leftist headquarters until Obama was elected in 2008, still hopes to juggle its excessive spending in one hand while grabbing at the income of anyone making over $93k with the other.

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.

As screwed up as the California budget process normally is, Governor Moonbeam is basing his revenue estimations partly on Facebook going public, “maybe”, later this year;

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

About Erick Brockway

Living in Camarillo, CA, about 45 miles North of LA. I have a son, and two daughters. Working two jobs (welcome to California life), plus a (now retired) reservist in the US Navy Seabees so life is busy!
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