SACRAMENTO- In a stunning indictment of California tax policy, experts admitted today that the state stands to collect hundreds of millions of dollars from the widely anticipated initial public stock offering of internet giant Facebook, illustrating the link between the state's higher than average tax rates and the effect on the behavior of the innovative, technology driven companies that are the key to sustaining the middle class.
"It's just common sense that high tax rates will drive out the entrepreneurial leaders who are the foundation of a modern economy" said California Republican Sate Senate leader Bob Huff while speaking from the Capitol of a state where Apple Computer, Adobe, Hewlett Packard , Sun Microsystems, and Amgen have somehow managed to eek out a living. If you have some Enbrel in your pharmacy refrigerator, you're storing the results of innovation in a state where millionaires pay a 1 percent income surtax to fund mental health programs.
Experts fear a repeat of the 2006 Google IPO, in which 16 Google executives paid the state almost $380 million dollars, enough at the time to fund the salaries of more than 3,000 state workers, who did such things as guard the state's violent prisoners, teach its children, and man the pharmacy board that many panty-waisted ninny pharmacists in the state expect will act as a counter balance to the giant national corporations that have already largely destroyed the profession. Those 16 executives are now largely destitute. Four of them starved to death in the winter of 2010.
Estimates are that Facebook's IPO could be four times as large as Google's, which means California could conceivably see over a billion dollars in tax revenue, while CEO Mark Zuckerberg's emaciated, lifeless body will be found on a San Francisco street corner in about a year after he becomes penniless.
"We simply cannot afford fall behind low tax states such as Alabama, Oklahoma, and Alaska when it comes to competing for the companies that will innovate the way to the economy of tomorrow." Huff continued while tapping on his iPhone. "The free market system has clearly shown what happens when you try to tax the people creating the jobs that are the key to growth."
You are reading this very post on blogger.com, a part of Google, which like I said, generated $380 million dollars for California and none for Alabama with its IPO.
Asked about the fact that California sends 22% more in taxes to the federal government than it receives, effectively subsidizing the rest of the country with the products of its economy, Huff plugged a set of earbuds into his iPod and pretended not to hear the question.