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Zuckerberg strikes Meta deal to stay in California amid potential wealth tax
Fox Business • • business
Key Points:
- Mark Zuckerberg has agreed to remain a California resident for eight years by receiving non-voting Meta shares, allowing him to potentially cover a proposed billionaire wealth tax while maintaining voting control of the company.
- The proposed Proposition 40 in California would impose a one-time 5% net worth tax on billionaires residing in the state as of January 1, 2026, with payments due starting in 2027 and spread over five years if needed.
- Meta plans to issue a new class of non-voting Class C shares in 2027 to fund acquisitions, retain talent, and help Zuckerberg manage potential tax liabilities without losing control of the company.
- The ballot measure has divided political opinions, with some Democrats supporting it while Governor Gavin Newsom and others oppose it, citing concerns over wealthy residents leaving California.
- Economists and business leaders warn the tax could prompt an exodus of billionaires and entrepreneurs from California, potentially reducing state income tax revenue despite generating significant wealth tax income.
