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California Dreaming Turns Into Nightmare As Sinking FaceBerg Stock Means Less State Revenue
Remember just a few happy months back when California's legislators were cock-a-hoop over the exuberance in Silicon Valley and all the yummy IPO/Capital Gains taxes they would tithe away - instantly solving all funding issues? Yeah, not gonna happen. As reported by the Sacramento Bee this evening:
The state's Legislative Analyst's Office said Wednesday that 'hundreds of millions' of dollars in assumed tax revenues may never materialize due to the continued slide in Facebook's stock price.
Menlo Park-based Facebook closed Wednesday trading at $20.88 per share, a new low 45 percent below the initial price. The state Department of Finance assumed the social media giant would trade at $35 by November, while the Analyst's Office believed it would trade at $42 at that time. The November marker is significant because another wave of insiders becomes eligible to sell shares at that point.
The Analyst's Office said today that much of the Facebook income tax revenues will still come in. But the LAO added that "if the company's stock price remains depressed, hundreds of millions of income tax dollars assumed in the 2012-13 state budget plan are at risk."
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"Marketing, that wonderful US citizen invention"
As if marketing didn't exist before America came into existence. Do you know how stupid that sounds/is? I'm not even sure I should reply further because logic and history eludes you.
Maybe fuck face Zuckerberg can reach out to the Founders of Facebook and ask them how they were planning to monetize their invention.
California must find a better channel to Bernanke.
California is a full toilet that Mother Nature needs to flush! Let the "Big One" come along soon and cure all that commie-liberal idiocy that passes for politics in it!
Actually, the whole FED, NWO, and pack of dirty-rat traitors to the Constitution are a full toilet that are about to be flushed in the ultimate "big one" action when the MASS ARRESTS take place... http://tinyurl.com/cd5cyjo/
This message of this article doesn't compute. The author asserts that SOMEONE anticipated "hundreds of millions of dollars" in state tax revenue? Facebook IPO was one of the most high-spec IT trades since the old wild west days pre-Y2K. Funds have rules in their prospectus (charter) that prevent them from taking outsized positions in firecrackers. So who was assumed to have invested? You might expect to see some high net worth "accredited investors" push out some poker money, but to suggest big fund participation on such a scale is nuts. What fund manager would approve something like that?
Maybe a stupid question, but can somebody clarifies which tax flow is we are talking about ?
Capital benefits tax for individual and companies that would sell facebook stocks at a profit ?
Something else ?
Any answer ? And if it is the above, why would it affect California more than any other state (ok you could say more people in Cal willing to buy fbook share, but that's all ? )
CA is one sorry ass POS.
It will be interesting after 1.7 billion(?) shares are allowed to be sold in the market in the next couple of months. About 4x what is currently trading
http://www.startribune.com/business/164680626.html
Cali will be fine. Everyone of those "shares" are covered by puts, Cuban taught everyone the lesson...
A sad fact about my favorite state is that the motherfuckers that are driving it into the ground are all wealthy and connected enough to just bail on it and move somewhere else when the shit hits the fan. And the shit WILL be hitting the fan. I have an uncle in Orange County who I am begging to get the hell out of the state, but he is too rich to notice the inevitable.
Apparently, California does something right and is it still home to most of these large IPO's. Even if FB goes down to 10, it will still be a $25 billion stock and there will still be a lot of employees becoming millionaires. I read a story yesterday about a guy who did some paintings in one of their offices - his stock options now worth $200 million - maybe he will only end up with $50 million - still a lot. Many other states and governments have tried to reproduce silicon valley without success - except for the Chinese who already got all the manufacturing that used to be there and just steal/copy the software.
At least the Chinese are producing something real. All we're left with is a system that spits out electrons in exchange for more electrons.
cock-a-hoop? I had to google that one.
I'll apply the "drunk/askew" definition to the California legislature.
Recall that Obama promised to leave the 10th amendment alone and let the dispensaries do business.
Note that the dispensaries were generating 2 billion a year in revenue, creating jobs and paying taxes, when Herr Brown interceded on behalf of his Mexican Mafia cohorts and used bag Holder's gestapo to crush the enterprise.
Jail Brown, Newsom, Holder, Boxer, Fiendstein, Clinton and Loera and its all good. Throw away Harmon on prinicipal.