Mark Zuckerberg faces $12.5 billion bill as California voters weigh billionaire tax

Mark Zuckerberg could owe as much as $12.5 billion if California voters approve Proposition 40 on November 3. The measure would impose a one-time 5% tax on the net worth of every individual in the state with assets of at least $1 billion. More than 200 Californians currently meet this threshold, including Oprah Winfrey, Kim Kardashian, and George Lucas.

Supporters argue the levy is necessary to address funding gaps in the state's healthcare system. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the proposal as a short-term solution to prevent a collapse in services. She noted that federal funding cuts stemming from President Donald Trump's recent tax and spending bill have left a financial hole that the state must fill.

The tax would apply retroactively to anyone who resided in California as of January 1, 2026, and possessed a net worth of at least $1 billion. Proponents say the measure will raise approximately $100 billion. Critics, including Governor Gavin Newsom, warn that the tax may drive wealthy residents and their associated income tax revenue out of the state. Newsom is serving his final term in office.

Several billionaires have already relocated. Larry Page, Sergey Brin, Peter Thiel, Travis Kalanick, and Don Hankey have reportedly left the state. Hankey moved to Nevada, telling Forbes that 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 California. The company agreed to a new stock deal to provide him with additional shares, helping to cover potential losses from the tax.

Public opinion remains divided. A September poll conducted by the Los Angeles Times and the Berkeley Institute of Governmental Studies found that 45% of likely voters support the measure, while 42% oppose it. Thirteen percent of respondents were undecided. A majority vote is required for the proposition to pass. Google cofounder Sergey Brin has donated more than $100 million to a political organization funding ballot measures that could block the tax, according to the Los Angeles Times.

Francesco Trebbi, a public policy professor at the University of California, Berkeley, believes this is the first billionaire tax in history. He noted that the measure targets a very extreme percentile of the wealth distribution. California holds the largest economy of any US state and the fourth largest globally, exceeding the economies of India and the United Kingdom. However, the state also has the nation's largest share of homeless people and one of the widest wealth gaps.

Reactions from business leaders are mixed. Andy Fang, a cofounder of DoorDash, called the measure stupid. In contrast, Nvidia chief Jensen Huang told CBS that he does not mind paying taxes. He stated that higher earners should pay more. Senator Bernie Sanders addressed a rally in Los Angeles, saying billionaires believe they have a God-given right to rule. He predicted voters would teach them a powerful lesson on November 3.

The proposal arrives amid rising inequality in the United States. The top 1% of households held nearly 32% of wealth in the third quarter of 2025, the highest level in over three decades. A similar share of Californians say the gap between rich and poor is widening and that the state government should take action. Washington state voters are also considering a 9.9% tax on income over $1 million per year, while wealth taxes in Europe are now limited to Spain, Norway, and Switzerland.

The next step is the November 3 election, where voters will decide the fate of Proposition 40. If approved, the state will begin the process of collecting the levy from the more than 200 identified billionaires. The funds are designated for healthcare initiatives, addressing the immediate financial strain on the system.