Zuckerberg Weighs Leaving California Over Proposed Billionaire Tax
WHO:
Fortune - The campaign opposing Proposition 40 included former Google CEO Eric Schmidt, Palantir cofounder Peter Thiel, Stripe CEO Patrick Collison, and DoorDash CEO Tony Xu as donors.
Fortune - Stanford economists Benjamin Jaros and Joshua Rauh estimated the tax’s effects in a working paper published by the National Bureau of Economic Research.
Fortune - Seven billionaires who publicly moved out of California, including Peter Thiel, Larry Page, and Sergey Brin, account for roughly $540 billion in wealth, according to the study.
Fortune - Economists Jasper Boll, Emmanuel Saez, and Gabriel Zucman authored a separate study that reached different conclusions.
Fortune - California Gov. Gavin Newsom opposes the tax; Jensen Huang said he would be comfortable paying the tax.
The Washington Post - The proposed tax would affect roughly 250 billionaires in California.
The Washington Post - Mark Zuckerberg was valued at $246 billion.
NY Post - Mark Zuckerberg is Meta’s CEO.
Wired - Meta’s board was concerned about the effect Zuckerberg’s departure could have on the company’s AI ambitions.
Techmeme - The report was attributed to Pierre Paulden of Bloomberg.
WHAT:
CBS News US - Zuckerberg agreed to remain in California for eight years under a board-approved plan to create new shares he could sell to pay the proposed wealth tax.
CNBC - The new share class would also give Meta another source of capital for artificial-intelligence investments.
CNBC - A September University of California Berkeley Institute of Governmental Studies poll found 45% of likely voters supported Proposition 40, 42% opposed it, and 13% were undecided. Support had fallen from 48% in early August and a 19-point lead in March, when 52% supported it and 33% opposed it.
CNBC - A Mason-Dixon Polling & Research survey for NBC Universal and Telemundo showed support for Proposition 40 ahead by 10 percentage points; prediction markets Kalshi and Polymarket put its passage odds below 30%.
CNBC - Democrats supported Proposition 40 by more than three to one, while Republicans opposed it by nearly eight to one.
CNBC - Sen. Bernie Sanders spoke at a Billionaire Tax Now rally in Los Angeles on February 18, 2026.
CNBC - Proposition 40’s revenue would largely fund state health-care programs to help offset health-care cuts under the One Big Beautiful Bill Act, which President Trump signed into law in 2025.
CNBC - Alan Auerbach, a Berkeley economics professor, said wealth under the proposal is highly concentrated among its wealthiest targets and that assumptions about taxpayer mobility could produce negative revenue estimates after future income-tax losses.
CNBC - Proposition 40 covers public equities, private-business stakes, venture-capital holdings, and complex ownership structures. Drafter Darien Shanske said public assets are readily valued, private-company valuation uses a formula based on Switzerland’s system, and taxpayers can defer payment for five years with interest or longer if illiquid.
CNBC - Xavier Becerra said he would vote against Proposition 40, calling a one-time tax unpredictable and unsustainable; Republican gubernatorial candidate Steve Hilton also opposed it, saying it could drive tax revenue out of California.
CNBC - United Airlines CEO Scott Kirby advocated a national wealth tax and inheritance taxes approaching 100% at some level, saying he would pay them.
CNBC - Building a Better California had spent roughly $118 million on the campaign and related measures, while the Service Employees International Union had spent roughly $32 million on the supporting campaign.
CBS News US - Zuckerberg agreed to remain in California for eight years under a board-approved plan.
CBS News US - Zuckerberg agreed to remain in California for eight years under a board-approved plan to create new shares he can sell to pay the proposed wealth tax.
Fortune - Stanford economists’ earlier Hoover analysis projected about $40 billion in tax revenue and a $25 billion net loss for California.
Fortune - The wealthiest 1% of U.S. households held 32.5% of the nation’s net worth in the second quarter of 2026, up from 31.1% a year earlier; the bottom half held 2.3%, down from 2.4%.
Fortune - In an August revision, economists Jasper Boll, Emmanuel Saez, and Gabriel Zucman raised their estimate of California billionaires’ state income-tax payments in 2025 from $4.1 billion to $4.3 billion. They argued that treating migration as permanent while treating the wealth tax as one-time was inconsistent, and that billionaires could return and new fortunes could replenish the tax base.
Fortune - Gov. Gavin Newsom proposed a national minimum tax on Americans worth more than $100 million.
Fortune - Jaros and Rauh estimated the tax would collect $30 billion, ranging from $28 billion to $36 billion, rather than the $100 billion supporters project.
Fortune - The economists projected billionaire departures could cost California $1 billion to $3.5 billion annually in lost income-tax revenue; their model found an estimated $38.9 billion net loss in today’s dollars, with 85% of 100,000 simulations producing a net loss.
Fortune - SEIU–United Healthcare Workers West disputed the research, saying the measure aims to prevent California’s health-care system from collapsing.
Fortune - A separate study estimated that even if every billionaire permanently left, accumulated income-tax losses would take roughly 25 years to equal the proposed $100 billion revenue.
Fortune - The Legislative Analyst’s Office expects tens of billions of dollars in revenue over several years and a possible annual income-tax revenue reduction of less than $1 billion.
Fortune - Tech billionaires raised more than $340 million to oppose the measure and support related ballot initiatives; Brin contributed more than $100 million. The opposition campaign spent at least $21.2 million during the first 19 days of September.
Fortune - A Citrin Center–Politico poll found 46% of likely voters supported the tax and 43% opposed it.
Fortune - Huang said he would be comfortable paying an estimated $8 billion over five years and called that ability “a privilege.”
The Washington Post - Zuckerberg has final say over major Meta decisions requiring shareholder approval because special stock lets him outvote other shareholders.
The Washington Post - Meta’s solution was to rework Zuckerberg’s stock so he could sell some shares while retaining absolute voting power.
The Washington Post - Meta previously abandoned a similar plan after other shareholders sued, arguing it would empower Zuckerberg at their expense.
NY Post - Meta said in a financial filing that Zuckerberg held detailed negotiations with the company’s board of directors about leaving California if the state passes Proposition 40.
NY Post - The proposed measure would impose a 5% wealth tax on billionaires and could require Zuckerberg to liquidate large amounts of stock.
NY Post - The article said Zuckerberg threatened to leave his California home, valued at $110 million.
Wired - Zuckerberg agreed to stay in California despite the billionaires’ tax ballot measure.
Wired - A new stock agreement gives Zuckerberg financial incentives to remain in California.
Techmeme - A Meta filing said Zuckerberg is considering leaving California if voters approve a one-time 5% tax on billionaires.
WHERE:
Fortune - The proposed tax generally excludes real estate, pensions, and most retirement accounts.
NY Post - The proposed tax is in California, where Zuckerberg has a home.
Wired - The stock agreement is intended to incentivize Zuckerberg to stay in California.
WHEN:
Fortune - The measure would tax the net worth of billionaires who were California residents on Jan. 1, 2026; payment would be due in 2027, with an option to spread payments over five years.
WHY:
Wired - Meta’s board feared Zuckerberg’s departure could disrupt the company’s AI ambitions.
NY Post - The proposed tax could force Zuckerberg to liquidate substantial amounts of stock.
Wired - Meta’s board feared that Zuckerberg’s departure could disrupt the company’s AI ambitions.
HOW:
CNBC - Proposition 40’s proposed tax applies to residents with net worth above $1 billion and includes liquid and illiquid assets such as public equities, private-business stakes, venture-capital holdings, and complex ownership structures.
CNBC - Darien Shanske said the proposal’s default valuation formula for private companies is based on Switzerland’s system; taxpayers could defer payment for five years with interest or longer if they are illiquid.
CNBC - Darien Shanske said California residency law would tax billionaires who resided in the state on January 1, 2026, and that some high-profile relocations might not change their tax exposure.
The Washington Post - Meta’s directors reworked the company’s stock so Zuckerberg could sell shares to pay the tax while retaining absolute voting power.
Fortune - Jaros and Rauh based their estimates on Forbes billionaire rankings, real-estate reports, and public relocation announcements, and adjusted the remaining tax base for the possibility courts would strike down the tax.
Fortune - Proposition 42 would bar retroactive taxes and prohibit new state taxes on personal property; Proposition 42 or Proposition 41 could each nullify the billionaire tax if it received more yes votes than Proposition 40.
NY Post - Zuckerberg and Meta’s board discussed a potential move out of California in connection with the proposed tax.
Wired - The agreement uses stock-related financial incentives to encourage Zuckerberg to stay.
Techmeme - The filing describes the proposed levy as a one-time tax; voters will decide on the measure next month.
(UPDATED October 22, 2026 21:06 UTC)
Meta CEO Mark Zuckerberg has agreed to stay in California for eight years under a board-approved stock plan tied to Proposition 40, the proposed 5% tax on billionaires. The plan would let him sell newly created shares to cover the tax while preserving his voting control, and give Meta additional capital for artificial-intelligence investments. The measure could affect about 250 California billionaires, but its prospects are uncertain: polls show a close race, while prediction markets put passage odds below 30%. Stanford economists Benjamin Jaros and Joshua Rauh estimate it would raise about $30 billion, but project a net loss to California after possible billionaire departures and lost income-tax revenue. Other economists dispute that outlook, arguing the tax could bring in substantially more. Gov. Gavin Newsom opposes the proposal, while Nvidia CEO Jensen Huang says he would be comfortable paying his estimated share.
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(UPDATED October 22, 2026 20:12 UTC)
Meta CEO Mark Zuckerberg has agreed to remain in California for eight years under a board-approved stock plan that lets him sell shares to cover a proposed billionaire tax while keeping his voting control. He had considered leaving if voters approve Proposition 40, a one-time 5% tax on billionaires that could affect about 250 people. The measure’s prospects appear uncertain: recent polls show support ranging from 45% to 46%, while prediction markets put passage odds below 30%. Stanford economists estimate it would raise about $30 billion, but project billionaire departures could cost California billions annually and leave the state with a net loss. Other economists dispute those assumptions, arguing that migration and future tax revenue may offset losses. The money would largely support health-care programs facing federal cuts. Tech leaders have poured millions into opposition efforts, while supporters say the tax could help protect California’s health-care system.
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(UPDATED October 22, 2026 18:06 UTC)
Meta CEO Mark Zuckerberg has agreed to remain in California for eight years under a board-approved stock plan tied to the proposed billionaire wealth tax. The arrangement lets him sell shares to cover the tax while keeping his voting control of the company. Meta’s board was concerned that his departure could disrupt its artificial-intelligence ambitions. Proposition 40 would impose a one-time 5% tax on billionaires who were California residents on Jan. 1, 2026, with payment due in 2027 and an option to pay over five years. Stanford economists estimate it could raise about $30 billion, but project a net loss to the state of nearly $39 billion, largely from lost income-tax revenue if wealthy residents leave. Other researchers and California’s Legislative Analyst’s Office offer less pessimistic estimates. The opposition, backed by prominent technology executives, disputes the measure; a poll found voters narrowly divided.
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(UPDATED October 22, 2026 16:15 UTC)
Mark Zuckerberg has agreed to remain in California for eight years under a Meta board-approved stock plan tied to the proposed billionaire wealth tax. The plan lets him sell shares to cover the levy while retaining control of the company through his voting rights. Meta’s board was concerned that his departure could disrupt its artificial intelligence ambitions. Proposition 40 would impose a one-time 5% tax on billionaires who were California residents on Jan. 1, 2026, and could affect about 250 people. Stanford economists estimate it would raise $30 billion, but project a net loss of nearly $39 billion for California, largely from lost income-tax revenue as billionaires leave. Other researchers dispute that outlook, while the state’s Legislative Analyst’s Office expects tens of billions in revenue. Tech billionaires have raised more than $340 million to oppose the measure, and a poll found voters narrowly divided.
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(UPDATED October 22, 2026 13:18 UTC)
Meta CEO Mark Zuckerberg has agreed to stay in California, after the company reworked his stock agreement to let him sell shares while retaining absolute voting power. The arrangement follows discussions about leaving if voters approve Proposition 40, a proposed one-time, 5% tax on billionaires that could force Zuckerberg to liquidate stock. Meta’s board was concerned his departure could hurt its artificial-intelligence ambitions. A Stanford study estimates the tax would raise about $30 billion, far below supporters’ $100 billion projection, and could leave California with a $38.9 billion net loss in today’s dollars. The researchers also project annual income-tax losses of up to $3.5 billion from billionaire departures. A separate study disputes that outlook, arguing lost income taxes would take roughly 25 years to match the proposed revenue, even if all billionaires left permanently. California’s roughly 250 billionaires would be affected, and voters will decide next month.
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(UPDATED October 22, 2026 04:09 UTC)
Meta CEO Mark Zuckerberg agreed to stay in California after discussing a possible departure with the company’s board over a proposed one-time, 5% tax on billionaires. A new stock agreement gives him financial incentives to remain, while preserving his voting control. The board was concerned that his departure could disrupt Meta’s artificial-intelligence ambitions. The tax would apply to billionaires who lived in California on Jan. 1, 2026, with payment due in 2027 and an option to spread it over five years. Stanford economists Benjamin Jaros and Joshua Rauh estimate it would raise $30 billion, far below supporters’ $100 billion projection, and could cause a net loss in state revenue. A separate study and the state’s Legislative Analyst’s Office reached more favorable revenue assessments. Tech billionaires have raised more than $340 million to oppose the measure; voters will decide next month.
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(UPDATED October 22, 2026 02:14 UTC)
Mark Zuckerberg has agreed to stay in California after Meta negotiated a new stock agreement with its chief executive. The deal offers financial incentives to remain in the state, where voters will decide next month on a proposed one-time wealth tax. The measure would impose a 5% tax on billionaires, affecting roughly 250 people in California, and could force Zuckerberg to sell substantial amounts of stock. He is valued at $246 billion and owns a home in the state worth $110 million. Meta’s filing said Zuckerberg and the board held detailed discussions about a possible departure. The board was concerned that losing him could disrupt the company’s ambitions in artificial intelligence. Zuckerberg also has final say over major decisions requiring shareholder approval, thanks to special stock that gives him greater voting power. Meta previously dropped a similar stock plan after shareholders sued, arguing it favored Zuckerberg at their expense.
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(UPDATED October 22, 2026 00:09 UTC)
Meta CEO Mark Zuckerberg has discussed leaving California with the company’s board if voters approve a proposed one-time wealth tax on billionaires. The measure would impose a 5% tax and could require Zuckerberg to sell substantial amounts of stock. Meta’s financial filing describes detailed negotiations over a possible move, while reports say Zuckerberg’s California home is valued at $110 million. Despite the threat of departure, Zuckerberg has agreed to stay in the state under a new stock agreement that provides financial incentives. Meta’s board was concerned that losing Zuckerberg could disrupt the company’s ambitions in artificial intelligence. Voters are expected to decide on the measure next month. The report on the board discussions was attributed to Bloomberg reporter Pierre Paulden.