Did CA make a major error when assuming they'd gain $1.9 B in taxes from Facebook shares?

[pdooma]

Whoops. So much for the government not relying on the stock market.

"The most populous U.S. state’s $91.3 billion budget, signed by Governor Jerry Brown in June, counted on $1.9 billion in income-tax revenue from company insiders such as Chief Executive Officer Mark Zuckerberg exercising options or sell shares, assuming an average price of $35. Facebook, which touched $45 May 18, has averaged $29.49 on the Nasdaq stock market.

“Facebook share prices have fallen far below levels assumed in the state’s revenue projections,” the nonpartisan Legislative Analyst’s Office said yesterday in a report. If “the lower share prices persist through November and December, hundreds of millions of dollars of income-tax revenue assumed in the state budget plan are at risk.”"

http://www.bloomberg.com/news/2012-08-02...-drop.html

[pdooma]

LMAO

[teenybasket955]

HAHAHAHA, i thought i'd seen it all but California keeps raising the bar for stupidity!

[Zachery G]

I think facebook made a major error when they thought their stock was actually worth anything.

[Thedude27]

Dont worry man they purchased $1,000,000 worth of CA lotto tickets, those will pay off for sure.

What other stocks do they have I want to make sure I dont own any of them?

[Al Bundy]

California = 55 safe Obama electoral votes

why can't you just come out & say this is why you hate California so much, cons?

[Oscar]

Their electoral votes did go to Obama in 2008, so you can't expect them to be smart enough to make good decisions.

[Keith]

FB has never been above $38.23. Its now falling steadily through $19.15.

http://www.google.com/finance?q=NASDAQ%3...IOqiAKTowE

[hurtsx2]

Intetesting. I guess "tax the rich!" isn't working out very well for them.

[Matthew D Rises]

ouch