Meta strikes deal with Zuckerberg to protect him from California wealth tax
Meta has agreed to give Mark Zuckerberg a way to fund a possible California billionaire tax while preserving his control of the company. In return, he has committed to remain resident in California, or wherever Meta is based, for eight years.
The arrangement comes ahead of a vote on Proposition 40, a proposed one-off 5% tax on about 250 billionaires in California. Meta plans a two-for-one share split that creates non-voting shares Zuckerberg could sell to pay a tax bill; polls show the measure lacks majority support, and several tech billionaires are campaigning against it. Meta also reported quarterly revenue up 26% to $64.6bn, while profit fell 37% to $13bn, partly due to a $9.9bn legal charge, and its workforce was down 15% year on year to 66,775.
In short
- Meta will issue non-voting shares Zuckerberg could sell to cover a possible tax.
- He has committed to remain in California or Meta’s base for eight years.
- The proposed 5% tax would cover about 250 billionaires.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of Proposition 40 could argue that a one-off tax on the wealthiest Californians would ask those who have gained most from the state’s economy to contribute more, potentially funding public services and reducing inequality. They may see Zuckerberg’s share arrangement as evidence that a tax can be paid without forcing him to surrender control of Meta, while his residency commitment helps keep the company’s leadership and economic activity in the state.
The case against
Opponents could argue that taxing unrealised or concentrated wealth risks forcing founders to sell shares, disrupting long-term control of companies and discouraging investment in California. They may also question whether a one-off tax would reliably deliver lasting public benefits, and see Meta’s arrangement as a practical way to meet any tax obligation while preserving stable leadership and the company’s presence in the state.
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