California voters will decide on a new wealth tax this November, but the measure is already losing ground. Mark Zuckerberg told his company he might leave the state if the tax passes. This threat comes as liberals split on whether the tax is worth the cost of losing job creators.
The proposal would take a one-time five percent tax from billionaires’ assets. Mark Zuckerberg, the CEO of Meta, cautioned the firm that he considered moving out of state.
Meta filed a report saying Zuckerberg informed the Special Committee that he was evaluating relocating his primary residence outside California and that steps toward any such relocation, including any listing of his residential real estate in California on the market, would be public and inevitably noted and commented upon by Company employees and, accordingly, raise questions for management of the Company going forward, according to Breitbart.
Meta wants to keep its leader close to its AI labs. The goal is to keep Mr. Zuckerberg continuing to lead the Company from California and in close proximity to Meta Superintelligence Labs, the filing stated. To help him stay, the company offered a plan to let him sell shares without losing control.
Meta acknowledged the arrangement carries financial risk given the ballot measure, warning in the filing of a “significant, multi-billion dollar tax payment” per Breitbart. Other tech figures like Google co-founder Sergey Brin also oppose the measure. They fear it will drive wealth and jobs to other states.
The tax has split the liberal party in California. Some worry it will hurt the state’s economy more than it helps. A study from the Hoover Institution suggests the tax could cost the state huge amounts of money. Reason Magazine says the study indicates the suggested 5 percent wealth tax on billionaires might result in $39 billion in lost state revenue.
Even Governor Gavin Newsom opposes this specific measure. Washington Times notes that the measure is battered by an intense opposition campaign. Liberals are split on whether a single levy justifies losing wealthy job creators and future income to other states.
The ballot measure faces an expected defeat on November 3.
