California’s counting on an IPO tax windfall. Several factors are complicating the equation
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- The blockbuster Space X IPO and potential upcoming public offerings for Open AI and Anthropic could create a tax windfall for the state of California.
- Following its IPO last week, SpaceX is now valued at $2.5 trillion, minting many of its employees who live and work near its Hawthorne, California, office as millionaires, at least on paper.
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A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
The blockbuster Space X IPO and potential upcoming public offerings for Open AI and Anthropic could create a tax windfall for the state of California. Yet the revenue boost may fall short of previous tech IPOs – at least relative to the firms' valuations – given the specific nature and tax treatment of today's tech compensation.