Mark Zuckerberg threatened to leave California over proposed billionaire tax, Meta says

Key Points:

• Meta CEO Mark Zuckerberg has threatened to relocate his primary residence outside California if voters approve Proposition 40, a proposed billionaire wealth tax on the November 3 ballot that would impose a one-time 5% tax on billionaires' wealth.
• Zuckerberg informed Meta that any move would be public and could raise questions among company employees, prompting Meta's board to approve a new class of nonvoting common stock to allow him to raise cash for the tax without selling voting shares and losing control.
• As part of the arrangement, Zuckerberg committed to remaining a California resident for eight years unless Meta moves its headquarters to another state, in which case he would relocate accordingly.
• The billionaire wealth tax aims to raise $100 billion for California's healthcare system, but economists warn it could backfire if wealthy residents leave the state, reducing tax revenue.
• The new nonvoting Class C shares will also help Meta raise capital for AI infrastructure, acquisitions, employee compensation, and other corporate needs without diluting Zuckerberg's voting control.