Tuesday, January 16, 2007

Googlifornia

There are talks about Google buying Iran so that we don’t need to worry about nuclear war! Forget those fake stories, here is a true story:

After cashing in more than 9 million shares valued at $3.7 billion in 2006, 16 Google insiders will owe the California State as much as $380 million in taxes — enough to cover the salaries of more than 3,000 state workers. Taxes paid by Google founders Sergey Brin and Larry Page account for nearly half the amount. There is virtually no way for them or other California billionaires to escape a 9.3% state capital gains tax or a recent voter-approved 1% tax on the wealthy to underwrite the state's mental health programs.

In the often slippery world of state finance, the wildly successful Google has had an unusually quantifiable effect on California's budget. It has become the face of an extraordinary two-year resurgence in state capital gains and stock-option revenue, much of which can be traced back to the tech sector. As Google's stock topped $500 last year, company executives continued to sell hundreds of thousands of shares each month, according to an analysis of insider transaction data by research firm Thomson Financial.

Commenting on Google’s tax money, California's Finance Department’s spokesman H.D. Palmer said, “"On behalf of a grateful state, I'll be happy to wash their windows or mow their lawn!”.

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