'This Is Huge,' Economist Says as Filing Shows Zuckerberg Getting Ready to Pay CA Billionaire Tax
"This SEC filing is proof that the campaign for Proposition 40 is working," said Gabriel Zucman. "We are at a turning point."
Federal filings released Wednesday reveal how Meta CEO Mark Zuckerberg, one of the richest men in the world, is getting ready to potentially pay a billionaire wealth tax that is on California's November midterm ballot—an indication of the grassroots campaign's impact.
"This is huge," economist Gabriel Zucman, an outspoken supporter of the proposed tax, wrote on social media in response to Meta's new filing with the US Securities and Exchange Commission. "We are witnessing a global turning point unfold before our eyes."
The New York Times reported Wednesday that the filing discloses the outcome of tense, months-long negotiations between Zuckerberg and Meta's board. Meta is headquartered in California, and Zuckerberg lives in a sprawling compound in Palo Alto.
According to the Times, Zuckerberg threatened to sell his home and leave California if board members didn't agree to a deal that would allow him to sell shares to cover his possible tax bill without relinquishing any control of Meta.
"On Wednesday, the company unveiled the result: In January, it will issue a new class of stock to shareholders, which Mr. Zuckerberg can sell to pay the potential wealth tax without cutting into his 60.6% voting power at the Silicon Valley firm," the Times reported. "Mr. Zuckerberg’s decision to preemptively restructure his stock holdings shows how fearful Silicon Valley is that the tax measure, Proposition 40, might pass in the midterm election on November 3."
WOW. New SEC filing: Zuckerberg is preparing to pay California’s billionaire tax, AND has signed an agreement to stay in the state for 8 years.Two myths down: no, billionaires won’t all flee, and yes, they can pay their fair share without losing their companies.Just 12 days left to win this! Holy shit this could be historic.
— Rutger Bregman (@rutgerbregman) October 22, 2026
If California voters approve Proposition 40 and defeat competing initiatives that would cancel it out, billionaires living in California as of January 1, 2026 would face 5% tax on their wealth, which they could pay all at once or over a five-year period.
The tax would raise an estimated $100 billion in revenue, funds that would help offset federal Medicaid cuts and fund California's education system. Prominent billionaires, led by Google cofounder Sergey Brin, have spent aggressively against the proposed tax, but Zuckerberg is not known to have donated to the opposition efforts.
Zucman, a world-renowned expert on inequality, noted that Meta's CEO would face a roughly $10 billion tax bill under Proposition 40. Zucman has argued the tax could serve as a model for broader efforts to rein in wealth inequality.
"Until now, Mark Zuckerberg has paid very little in taxes relative to the staggering growth of his fortune," the economist wrote on Wednesday. "Proposition 40—the California billionaire tax—would change that."
"This SEC filing is proof that the campaign for Proposition 40 is working," Zucman added. "Mark Zuckerberg is preparing to pay the wealth tax if California voters decide to approve Prop 40. Voting is already underway, and it ends in just 12 days. We are at a turning point. California is closer than ever to enacting the first billionaire wealth tax in history. This is a historic moment."
