Meta CEO Zuckerberg Faces $12.5 Billion Bill in California Billionaire Tax Vote

California possesses the largest state economy in the United States and ranks fourth globally, yet it also maintains the nation's highest concentration of homelessness. Against this backdrop, state voters will decide on November 3 whether to impose a one-time wealth tax on the region's richest residents.

Proposition 40, appearing on the November ballot, would tax the net worth of every individual in California with a valuation of at least $1 billion. The measure targets a population of slightly more than 200 billionaires. If approved, the tax would apply retroactively to anyone meeting the wealth threshold who resided in the state as of January 1, 2026.

Supporters project the levy would generate $100 billion. This revenue is intended to offset federal funding cuts to the state's healthcare system, which stem from a sweeping tax and spending bill enacted by President Donald Trump. Suzanne Jimenez, a leader with the Service Employees International Union-United Healthcare Workers West, described the proposal as a short-term solution. She told the BBC that without action, the state faces a collapse of its healthcare infrastructure while it seeks a longer-term funding model.

The potential financial impact on individual executives is substantial. Mark Zuckerberg, the chief executive of Meta, informed the company's board last month that he is considering moving his primary residence out of the state. Meta agreed to a new stock deal to provide him with additional shares to cover the potential loss. If he remains in California, his liability could reach $12.5 billion. Andy Fang, a cofounder of DoorDash, labeled the measure stupid.

Governor Gavin Newsom, whose term is concluding, opposes the tax. He argues the levy could incentivize wealthy residents to leave the state, thereby reducing the income tax revenue the government collects. Google cofounder Sergey Brin has contributed more than $100 million to a political organization funding ballot measures that aim to block the proposal. A September poll conducted by the Los Angeles Times and the Berkeley Institute of Governmental Studies found that 45% of likely voters supported the measure, 42% opposed it, and 13% remained undecided.

Several high-profile figures have already relocated. At least six billionaires, including Google cofounders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber executive Travis Kalanick, and Hankey Group founder Don Hankey, have reportedly left the state. Hankey told Forbes that he moved to Nevada due to the proposal, stating the measure made him feel unwelcome despite the jobs his companies created.

Public policy professor Francesco Trebbi at the University of California, Berkeley, believes this is the first billionaire tax targeting such an extreme percentile of the wealth distribution. He attributes the measure to an anti-elite sentiment that seeks to re-balance the economic scale. Senator Bernie Sanders told a Los Angeles rally that billionaires believe they possess a God-given right to rule and predicted they would learn a powerful lesson on November 3.

Nvidia chief Jensen Huang supports the tax, telling CBS that he does not mind paying taxes and accepts the principle that higher earners should pay more. The state's wealth gap has widened, with the top 1% of households holding nearly 32% of wealth in the third quarter of 2025. A Public Policy Institute of California survey found that 72% of Californians believe the gap between the rich and poor is widening.

Other jurisdictions are considering similar levies. Washington state voters are weighing a 9.9% tax on income exceeding $1 million annually. While wealth taxes were once common in Europe, only Spain, Norway, and Switzerland currently maintain them. Dr. Kristian Niemietz of the Institute of Economic Affairs calls such levies more trouble than they are worth.