Mark Zuckerberg thought about leaving California. Meta says a proposed tax on billionaires was why. Now he has promised to stay. Meta (META) said in a filing on Wednesday, Oct. 21, that its chief executive agreed to keep his primary home in its headquarters state. The promise runs eight years.
The tax is Proposition 40, on California's Nov. 3 ballot. Californians worth $1 billion or more would pay 5% of their net worth, one time. That's a tax on what people own. An income tax hits what they earn. Meta said Zuckerberg would owe a “significant, multibillion-dollar tax payment” if it passes. Paying could force him to sell shares and cut his voting control from 60.6% to 53% or lower. A new deal lets him sell up to 20% of his new Class C shares right away, including to pay the tax. Meta said it wants him working at headquarters, after the trouble it had when he worked apart from his team during Covid.
Both sides are making their case. A Journal editorial on Thursday, critical of the measure, set the backers' claim against a rival estimate. Backers, led by the SEIU United Healthcare Workers West union, say the tax would raise $100 billion from 200 billionaires. The editorial cited a Hoover Institution paper by Joshua Rauh and Benjamin Jaros. It estimates a net revenue loss of $38.9 billion, because billionaires who leave stop paying state income tax. Citing public reports, the editorial says seven billionaires worth $539.9 billion left before the Jan. 1, 2026, residency date.
The case for a national tax
A Journal editorial on Wednesday took up another side of the debate. United Airlines CEO Scott Kirby told the New York Times the U.S. should have a national wealth tax. “It won’t work by state because people will just move,” he said. He also backed inheritance taxes close to 100% at some level. The editorial pushed back. It noted that Kirby lives in Texas, which has no state income tax. It also said Washington state this year reversed a recent increase in its top estate-tax rate.
Our read
This is a Tax and Estate story. We take no side on Prop. 40. That's for California voters on Nov. 3. Our read is narrower. In general, a state taxes its residents on all their income, so where you live sets the bill. To change residency, states look at where you really live. That means your home, your driver's license, where you vote and where you spend your time. Meta is held at weight in 20 books; nothing added.
Here's the link to your own plan. Many retirees plan a move to a lower-tax state like Florida or Texas. If you've made that move or plan to, it isn't done when the truck pulls away. This week, check that your driver's license, voter registration and the address on your IRA and brokerage accounts all point to the new state. Keep a simple log of where you spend your days. You pack the paperwork before the tax form asks for it. If you'd like help mapping a move like that, bring last year's return and we'll walk through it.