That was my reaction as well, but after reading a bit more about it, it appears California taxes capital gains as regular income. This bill might as well have

That was my reaction as well, but after reading a bit more about it, it appears California taxes capital gains as regular income. This bill might as well have been called the "taking money from Facebook investors" bill... combined with the federal capital gains rate, most startup IPO beneficiaries are going to pay ~30%.