Facebook Stock Crash Hoses California’s Tax Revenue
Well, the hits from the Facebook stock implosion keep coming.
Now, it’s the State of California, which apparently overestimated how much tax revenue it was going to collect from Facebook employees after the IPO.
According to Bloomberg’s John Erlichman, California is now saying its “tax revenue is at risk” because it assumed it would get $1.9 billion from newly enriched Facebook employees.
But now those Facebook employees are only going to get about half as rich as they would have if the stock were still trading at the IPO price.
And that means that California—and the Federal government—are likely to collect only about half as much Facebook-related tax revenue as they thought.
Read more: businessinsider.com