A tax boost for California!

All the newly minted California millionaires and billionaires from the likes of Uber, Lyft, Pinterest, Slack, Palantir and Postmates will generate a windfall; taxes are usually due when employees vest stock awards, sell shares or exercise options.

The state heavily relies on income tax for revenue, and, under its progressive tax policies, the wealthy pay proportionately more. So stock market bonanzas that make the rich richer will swell California’s coffers with taxes on exercised stock options treated as income and shares sold as capital gains. California taxes both as ordinary income at a top rate of 13.3 percent.

Almost of of these companies loss makers so better to get capital gains taxes  from them rather than sales taxes.