California has just introduced an incredible plan that is really surprising Elon Musk and all the other big wigs of space exploration.
California has just done something crazy in order to extract money from rocket launching companies like SpaceX, and the founders of those companies coulnd’t be happier. Specifically, California wants to calculate tax payments based on how often they fly the 62 miles from the launchpad in California to the edge of space.
So basically, California is taxing companies by the mile once they launch, until they reached the edge of space after 62 miles, which is when they would incur no further taxes. It comes at a time when California is a hotbed of aerospace start-ups, with Elon Musk’s SpaceX and the United Launch Alliance being the obvious leaders, although Virgin Galactic is hot on their heels.
All three of those companies threw their support being the new tax rule when they met with the California government. Basically, it’s nice for them to finally have a clear tax code to abide by rather than the uncertainty they’ve had to deal with so far.