SpaceX's Texas Move Won't Stop California From Taxing Its IPO Windfall
By
Alan Ohnsman
Front-window bakery material. Catches the eye, delivers the goods.
Summary
SpaceX moved its headquarters from California to Texas, but its upcoming IPO will still generate significant tax revenue for California. This is because thousands of SpaceX employees who will benefit from stock-based compensation remain in California and will be subject to the state's millionaires' tax on their capital gains. The article explores the irony of Elon Musk, who has been highly critical of California's tax policies and business climate, now seeing his company's biggest financial event deliver a substantial tax windfall to the state he left.
Key quotes
· 3 pulledThe biggest fiscal event of his career could hand the state he trashed a giant tax windfall anyway.
Because while the company's relocation gave it a new Texas headquarters, it did not move the thousands of soon-to-be-wealthy SpaceX employees who still live and work in the Los Angeles area.
Texas, which doesn't tax personal income, won't get a dime from the stock sales of those employees.
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