Zuckerberg's Bill: $12.5B

Mark Zuckerberg told Meta's board last month he is weighing a move of his primary residence out of California. The decision comes as the state prepares for a November vote on Proposition 40, a one-time 5% tax on the net worth of its billionaires. If the measure passes, Zuckerberg could owe as much as $12.5 billion to the state.

Proposition 40 targets the more than 200 residents of California with a net worth of at least $1 billion. Supporters estimate the levy will generate $100 billion. The funds are intended to offset federal cuts to the state's healthcare system resulting from President Donald Trump's recent tax and spending legislation. The tax would apply retroactively to anyone who lived in the state and met the wealth threshold as of January 1, 2026.

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 state faces a collapse of its healthcare system while a longer-term funding solution is developed. The union helped lead the campaign for the ballot measure.

Governor Gavin Newsom, whose term ends this year, is a prominent opponent. He warns the tax will drive wealthy residents and their income tax revenue out of the state. Google cofounder 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 found 45% of likely voters support the tax, 42% oppose it, and 13% remain undecided. A majority is required for passage.

Several billionaires have already left the state. Among them are Google cofounders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber chief Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes he relocated to Nevada because the proposal made him feel unwanted, despite the jobs his companies created in California.

Meta, headquartered in the state, agreed to a new stock deal that gives Zuckerberg additional shares. This move is designed to offset the billions he would lose under the tax. DoorDash cofounder Andy Fang criticized the measure as stupid. Jensen Huang, chief executive of Nvidia, expressed support, telling CBS that he does not mind paying taxes and that higher earners should pay more.

Francesco Trebbi, a public policy professor at the University of California, Berkeley, called the measure the first billionaire tax, noting it targets an extreme percentile of the wealth distribution. He said the sentiment driving the vote is anti-elite and aims to re-balance the scale. Senator Bernie Sanders told a Los Angeles rally that billionaires believe they have a God-given right to rule and predicted they would learn a powerful lesson on November 3.

California has the largest economy in the United States and the fourth largest globally, surpassing India and the United Kingdom. However, it also holds the nation's largest share of homeless people and one of the widest wealth gaps. The Public Policy Institute of California reports that 72% of residents believe the gap between rich and poor is widening and that the state government should do more. The top 1% of households held nearly 32% of wealth in the third quarter of 2025, near the highest level in over three decades.

Washington state voters are also weighing a 9.9% tax on income over $1 million a year. In Europe, only Spain, Norway, and Switzerland currently maintain wealth taxes. Kristian Niemietz of the Institute of Economic Affairs described such levies as more trouble than they are worth.