Zuckerberg to Pay $12.5 Billion if California Passes Billionaire Tax

Meta chief Mark Zuckerberg will owe $12.5 billion if California voters approve a one-time wealth tax on the state's billionaires. The measure, known as Proposition 40, is on the ballot for November and targets a group of just over 200 residents who each hold net worth of at least $1 billion. The tax is set at 5% of their total wealth.

Supporters argue the levy will raise $100 billion to offset federal funding cuts to the state's healthcare system. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the measure as a short-term fix. She told the BBC that without action, the healthcare system would face a collapse while long-term funding solutions are developed.

Governor Gavin Newsom, whose term is ending, opposes the proposal. He warns that the tax could push wealthy residents and their associated income tax revenue out of California. Google co-founder Sergey Brin has donated more than $100 million to a political group funding efforts to block the measure, according to the Los Angeles Times. A September poll by the newspaper and the Berkeley Institute of Governmental Studies showed 45% of likely voters in favor, 42% opposed, and 13% undecided.

The tax would apply retroactively to anyone who lived in California as of January 1, 2026, and had a net worth of at least $1 billion. At least six billionaires have reportedly left the state since the proposal surfaced. The group includes Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber CEO Travis Kalanick, and Don Hankey, founder of the Hankey Group. Hankey told Forbes he moved to Nevada because the proposal made him feel unwelcome.

Zuckerberg informed Meta's board last month that he was considering moving his primary residence out of the state. Meta agreed to a stock deal granting him additional shares to cover his potential loss. Andy Fang, co-founder of DoorDash, called the measure stupid in response to the proposal.

Some billionaires support the tax. Nvidia CEO Jensen Huang told CBS that he does not mind paying taxes and that higher income should mean higher taxes. Senator Bernie Sanders told a rally in Los Angeles that billionaires believe they have a God-given right to rule. He predicted they would learn a powerful lesson on November 3.

Francesco Trebbi, a public policy professor at the University of California, Berkeley, said this is likely the first billionaire tax targeting an extreme percentile of the wealth distribution. He noted that the measure reflects anti-elite sentiment and an effort to re-balance the economic scale. Washington state voters are also weighing a 9.9% tax on income over $1 million, while only Spain, Norway, and Switzerland in Europe maintain similar wealth levies.