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Zuckerberg Warns Prop 40 Tax Could Cut Voting Power

By Drooid · Oct 22, 2026, 2:41 AM UTC · How we work

Summary

Zuckerberg Threatens Exit

Meta CEO Mark Zuckerberg negotiated with the board about leaving California if Prop 40 becomes law.
He warned a $12.5 billion tax bill could force a stock sale, cutting his voting power to about 53%.
Zuckerberg disclosed plans to sell his $110 million Palo Alto home to raise liquidity for the tax.
Meta filed a recapitalization plan creating new Class C shares and a dividend to keep his leadership.

Summary

Billionaires Block Tax

Governor Gavin Newsom calls Proposition 40 a flawed initiative.
Proposition 40 would levy a one-time 5% tax on assets over $1 billion, payable in 2027.
Sergey Brin and Eric Schmidt have spent over $1 million daily, contributing more than $340 million to block the tax.
Seven billionaires left, removing about $540 billion—30% of the state’s billionaire wealth—from the tax base.

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Zuckerberg Threatens Exit

Meta CEO Mark Zuckerberg negotiated with the board about leaving California if Prop 40 becomes law.
He warned a $12.5 billion tax bill could force a stock sale, cutting his voting power to about 53%.
Zuckerberg disclosed plans to sell his $110 million Palo Alto home to raise liquidity for the tax.
Meta filed a recapitalization plan creating new Class C shares and a dividend to keep his leadership.

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