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California Reaps Google Windfall
theodp writes "The SF Chronicle reports that California took in a record $11.3B in personal income tax receipts in April, $4.3B more than it collected last April, attributing a significant chunk of the surprise windfall to Google employees. Fourteen of Google's top execs and directors sold $4.4B worth of stock last year, including founders Sergey Brin and Larry Page, each of whom unloaded about $1.3B."
As a CA resident, this is good news. The state as a whole has been bitching about budget gaps and junk loans and a poor credit rating for the last 5 years, well since the end of the dot bomb days. This should either a) fix the problem in a big way or b) identify the real problem in an even bigger way.
'A' will happen if the legislature and Governor use the windfall responsibly and pay off huge amounts of existing loans (there's probably 20 billion or so still outstanding) cutting them by a 3rd or more and making them manageable debt instead of out-of-control debt.
'B' will happen if they simply add an additional 6 billion or more to the existing spending budget for next year, with the hopes that somehow this will happen again in the next year or two, essentially throwing away the opportunity to be responsible.
I'm hoping for A obviously and hoping that Arnold is the one to do it.. he preached fiscal responsibility all through his campaign, he better stand up and enforce it or get thrown out trying to, no matter what they say about him (Arnold won't give money to education, he wants to pay off those fat-cat loan companies instead, think about the children!).
A fool throws a stone into a well and a thousand sages can not remove it.
If you're from B.C. you'd know that the state of California (or I should say the people of) owes B.C. just over a billon, maybe more for electricity we had sold them. Is that going to be paid back? Good luck there, we have to try and collect it from bankrupt companies. It'd be nice to see that paid back, but no, Americans are just a bunch of bums...
A $200,000 home in Ohio would fetch over a million dollars there.
There is, incidentally, a surprisingly healthy million dollar home market in Ohio suburbs. The reason is because people who are moved by their companies from housing markets where there is a bubble, need to put the equity they have (500k+) into their next home to avoid capital gains.
I've been wondering a lot about this lately, and I think that a certain amount of income differentials are becoming unjustifiable. There's one large company with a significant New York and Columbus presence(s) that has employees making $200k in New York who do the same thing as a $75k Columbus employee. Unless the New York employee is magically 2 1/2 times more productive, they might have to justify themselves very differently in the future.