Wednesday, December 22, 2010

Will Facebook Save California?

California's fiscal burden could be eased in 2011 and 2012 if Palo Alto-based Facebook -- valued at some $67 billion -- goes public, Paul Kedrosky notes. "Personal income tax is the largest source of state income, and the most volatile component of that source is stock options and capital gains," he says. Google helped California back in 2006. California received $4.3 billion more in personal tax receipts in 2006 - as Google executives cashed out of stock and options from that company's initial public offering in August 2004.

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