Skip to comments.Google Stock Boom Boosts Calif. Coffers
Posted on 01/06/2007 7:41:29 PM PST by 2ndDivisionVet
Someday, this era may simply be known as The Google Years. California, whose budget revenue slides up and down like a yo-yo with changes in capital gains and stock options, is once again counting on outsized income tax filings from a handful of tech executives to help balance its budget.
For this wave, California can largely thank Google Inc.
After cashing in more than 9 million shares valued at $3.7 billion last year, 16 Google insiders will owe the Golden State as much as $380 million in taxes enough to cover the salaries of more than 3,000 state workers.
Taxes paid by Google founders Sergey Brin and Larry Page account for nearly half the amount. There is virtually no way for them or other California billionaires to escape a 9.3 percent state capital gains tax or a recent voter-approved 1 percent tax on the wealthy to underwrite the state's mental health programs.
"On behalf of a grateful state, I'll be happy to wash their windows or mow their lawn," said H.D. Palmer, spokesman for California's Department of Finance.
In the often slippery world of state finance, the wildly successful Google has had an unusually tangible effect on California's budget. It has become the face of an extraordinary two-year resurgence in state capital gains and stock-options revenue, much of which can be traced back to the tech sector.
(Excerpt) Read more at money.iwon.com ...
California Progre$$ives, living on borrowed time and borrowed money..
You'd think that the liberals would be a bit more appreciative of Capitalism at work....paying the way to their government paid for paradise....!
Ungrateful, greedy layabouts....waiting for a boondoggle like Google to finance their waste and corruption.
Some way, some how, we need to find a way to make the left to thank the Capitalists. Maybe...time for a tea-party?