At least until the inventory of 10-year old start-ups is offloaded.
From MarketWatch, March 31:
Already flush with revenue from its healthy economy and growing number of high earners, California is expecting a tax windfall from a slate of initial public offerings that began Friday with Lyft Inc.
Nearly 10% of the state's tax revenue in the next fiscal year, or $13.8 billion, was already expected to come from capital gains. That figure could grow further as executives and employees of tech companies cash in over the coming months.
In addition to Lyft, whose IPO valued it at $24 billion, other potential IPOs on the horizon include its larger ride-hailing rival Uber Technologies Inc., which could be valued as high as $120 billion, Pinterest Inc. and Slack Technologies Inc.
There are no official estimates for how much revenue is expected, but when Facebook went public in 2012, the state reaped a windfall of about $1.3 billion, according to California's Department of Finance.
Newly wealthy tech employees are particularly valuable because Sacramento is so reliant on high earners. The top 1% paid 46% of California's individual income taxes in fiscal 2016, according to Standard & Poor's Global Ratings....MORE
