Friday’s initial public offering of Facebook stock won’t just make Mark Zuckerberg a billionaire. It’ll bring a huge boost to California’s struggling finances.
Jason Sisney with the non-partisan Legislative Analyst’s Office says it won’t solve all the state’s budget problems, but he estimates it will bring the state a one-time windfall of about $2 billion.
“We’re talking about essentially 2 percent of the state budget over the next year being paid by a few thousand people," Sisney pointed out. "Particularly concentrated in a much smaller number of those who are among the wealthiest.”
That includes Zuckerberg himself, who could be on the hook for hundreds of millions of dollars in California income tax.
But it’s never easy to predict stock prices and tax revenues, so Sisney says the state could bring in hundreds of millions of dollars less than that $2 billion estimate, or they could rake in a couple billion more.