Zuckerberg Faces Billions in Potential Bill as California Weighs New Wealth Levy

Tension is building over a historic financial measure that would target the pockets of California's ultra-wealthy. In November, voters will decide if they want to impose a one-time 5% levy on the net worth of every billionaire living in the state. This group includes well-known figures such as Mark Zuckerberg, Oprah Winfrey, Kim Kardashian, and George Lucas. The proposal, known as Proposition 40, could require these individuals to pay billions to support the state's healthcare infrastructure.

Advocates argue the tax is a necessary fix for funding holes created by federal cuts. Suzanne Jimenez of the Service Employees International Union described the move as a short-term solution to prevent a collapse in the healthcare system. She noted that doing nothing risks a crisis while longer-term funding strategies are developed. The state, which has the largest economy in the US and the fourth largest globally, also holds the nation's highest number of homeless people and a significant wealth divide.

Critics, including Governor Gavin Newsom, warn the measure could push wealthy residents and their tax revenue out of state. Sergey Brin, a Google co-founder, has donated over $100 million to groups aiming to block the ballot measure. A recent poll showed 45% of likely voters supporting the tax, 42% opposing it, and 13% undecided. Since a majority is required for passage, the undecided voters will be crucial in determining the outcome.

The tax would apply retroactively to anyone worth at least $1 billion who resided in California on January 1, 2026. Several billionaires have already relocated, including Peter Thiel and Travis Kalanick. Don Hankey, who moved to Nevada, told Forbes the proposal made him feel unwelcome despite the jobs his companies created. Mark Zuckerberg, who could owe up to $12.5 billion, informed his board he was considering moving his primary residence. Meta, headquartered in the state, granted him new shares to offset potential losses.

Not all wealthy residents oppose the plan. Nvidia chief Jensen Huang told CBS he is comfortable paying taxes, noting that higher earners typically pay more. Senator Bernie Sanders, speaking at a rally in Los Angeles, argued that billionaires often believe they have a divine right to rule. He predicted voters would send a strong message on November 3. The measure reflects a broader anti-elite sentiment, according to public policy experts who see it as an attempt to rebalance the economic scale.

This debate fits into a wider national conversation about inequality, which is near its highest level in over three decades. The top 1% of households now hold nearly 32% of total wealth. In California, most residents believe the gap between rich and poor is widening and that the state government should act. Washington state is also considering a similar tax on high incomes, while only a few European countries still maintain wealth levies, which some economists describe as more trouble than they are worth.