The US tax department is in for a major windfall from Twitter’s blockbuster initial public offering, which has made 1,600 of its employees millionaires. They will together pay an estimated $2.2 billion (about Rs. 13,800 crore) in taxes, according to a report by US-based PrivCo, a provider of business and financial research on major privately-held firms.
It said Twitter’s fantastic public debut on New York Stock Exchange last week, added as many as 1,600 of its employees to the US millionaire club. “With an 8% tax rate in California and a 32% tax rate at the federal level, Twitter’s newly-minted millionaires face a tax bill of $2.2 billion,” PrivCo said.
“Twitter’s IPO will have far-reaching implications for everything from Silicon Valley real estate prices to new start-ups that will be formed by the ‘Twitter Mafia’ — new angel investment capital now available for other new business ventures,” PrivCo said.
“The addition of 1,600 new millionaires to California’s tax base will also bode well for the state’s budget crisis,” it added.