Zuckerberg could face $12.5 billion bill in California tax vote

Mark Zuckerberg may owe $12.5 billion if California voters approve a one-time wealth tax in November. The proposed measure, Proposition 40, targets the net worth of the state’s approximately 200 billionaires, including tech executives, media figures, and entertainment industry leaders.

The initiative seeks to generate $100 billion to cover federal funding cuts to the state’s healthcare system. These cuts stem from the national tax and spending legislation signed by President Donald Trump. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the measure as a short-term solution to prevent a collapse in healthcare services while longer-term funding strategies are developed.

California possesses the largest economy in the United States and ranks fourth globally, surpassing the economies of India and the United Kingdom. Despite this scale, the state holds the largest share of the national homeless population and one of the widest wealth gaps. Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that this would likely be the first tax specifically targeting the extreme upper percentile of wealth distribution.

Governor Gavin Newsom, whose term is ending, has emerged as a prominent opponent. He warns that the tax could incentivize wealthy residents to relocate, thereby reducing the state’s income tax base. Sergey Brin, a Google co-founder, has contributed over $100 million to a political organization funding efforts to block the measure, according to the Los Angeles Times. A September poll conducted by the newspaper and the Berkeley Institute of Governmental Studies showed 45% of likely voters in favor, 42% opposed, and 13% undecided. A majority vote is required for passage.

If enacted, the tax would apply retroactively to individuals with a net worth of at least $1 billion who resided in California as of January 1, 2026. At least six billionaires have reportedly left the state since the proposal gained traction. This group includes Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber chief Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes he moved to Nevada because the proposal made him feel unwelcome despite the jobs his companies created.

Zuckerberg informed Meta’s board last month that he is considering moving his primary residence out of the state. Meta, headquartered in California, agreed to a new stock deal that grants him additional shares to offset the potential tax liability. Andy Fang, a DoorDash co-founder, dismissed the measure as stupid.

Support among the wealthy is not universal. Jensen Huang, the chief executive of Nvidia, told CBS that he does not mind paying taxes and believes higher earners should contribute more. Senator Bernie Sanders addressed a Los Angeles rally, stating that billionaires believe they have a God-given right to rule and predicted they would learn a powerful lesson on November 3.

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

US inequality is near its highest level in over three decades. The top 1% of households held nearly 32% of wealth in the third quarter of 2025. The Public Policy Institute of California reported that 72% of Californians believe the gap between the rich and the poor is widening. Trebbi stated that the measure is driven by anti-elite sentiment and aims to re-balance the economic scale.