Facebook IPO watch: California, plagued by budget problems, finally ushered in a good news. The California Legislative Analyst’s Office estimated the social networking giant Facebook, headquartered in Palo Alto, would bring taxes of $2.45 billion to California after its IPO (initial public offering), including $1.5 billion in 2012 and 2013.
The Legislative Analyst’s Office considered a variety of uncertainties in this estimation. The office said they could not accurately measure and calculate the impact on the Galifornia’s taxes before and after the Facebook IPO, but the Facebook IPO would obviously have a positive impact on the California’s tax revenue, so they firmly believe that decision-makers should consider this income into the budget planning.
Even if it is difficult to quantify the impact of the Facebook IPO, the Legislative Analyst’s Office is very clear about that the Facebook IPO is definitely a good news to California which is eager to make up for the billions of U.S. dollars budget holes.