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The Manhattan Institute’s Steve Malanga on the funds California was expecting to earn from the social-media website’s IPO.
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All investors were not the only loses in the FaceBook IPO California also lost out big time.
Governor Brown was counting on one point nine billion dollars in tax revenue after the company went public instead it.
Because of the stocks -- performance it's estimated that the state may only get about 707.
Million dollars from the IPO.
Steve -- -- up from the Manhattan institute is via festival.
One point nine billion they expected to get did they found to back into their future budgetary calculate -- into this.
Budget this year's budget which started on July -- -- closing dialing 91 billion dollar budget with almost two billion dollars from FaceBook.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But they calculate -- the capital gain.
Based on -- share price somewhere around between 35 and 38 dollars it's now at 22 dollars million doesn't -- -- not exercised their options at all.
In addition to that 400 million dollars of that money was very -- speculating that he would -- his referendum on.
-- higher taxes so the capital gains is based on that thirteen point 3%.
A prospective tax rate which we think voters may reject.
In November so the whole thing.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Is instead that they've.
It put all these other tax in place so in addition to their very high income taxes.
To you know victory but also have very high corporate tax and we -- the golden -- that's -- we're no more golden -- -- becoming -- golden goose is the course of business community really especially the -- -- second worst business.
This tax burden in the country and that's really what.
I'll order you got any comment on the much in the news talk and we just read Reuters is reporting that the spot gasoline market in Los Angeles mother was the price of gas in law in California.
Just spiked 24 and a half cents because of that fire at the refinery in northern California.
If prices go up at the -- certainly enormously.
In California won't impact.
We know -- isn't there -- number economists who actually have these formulations the relationship between of the gas price of gasoline to the unemployment rate.
California unemployment rate is already two percentage points above the national average.
They are heading in the wrong direction economically compared to states like Texas obviously so that can't be good news there I mean it's a simple of that.
We're not seeing job creation there although we they have one good month we're not seeing extended job creation there.
So it's a problem that's one of the resort -- -- -- problem.
But 385 is -- name is the average in California for regular 385 as of right now.
You add on the 24 cents if that's a legitimate thing to do I don't know -- that's a legitimate calculation it it may not be.
But you.
It will go off and remember their summer blends are very very costly and much more -- most states and ultimately -- level by the way I am told -- look it is highly unlike that the price of gas will go up 24 cents overnight because of the fire that is highly unlikely.
But it will go off.
-- -- got very good indeed thanks for joining us presents -- -- --
