Zuckerberg weighed selling $110M home over billionaire tax, struck Meta deal
Meta CEO Mark Zuckerberg reportedly considered selling his $110 million Palo Alto home and leaving California over a proposed 5% wealth tax on billionaires. He has struck an eight-year deal with Meta to remain in California or where the company is headquartered. The agreement provides non-voting shares to help cover a potential multibillion-dollar tax bill while protecting his voting control.
Mark Zuckerberg has secured a deal with Meta to stay in California despite a proposed billionaire tax. The agreement gives Zuckerberg additional shares in Meta to offset potential tax losses. The California tax would impose a 5% levy on residents with net worth over $1bn, potentially costing Zuckerberg around $10bn. Zuckerberg negotiated the deal after intense discussions with Meta.
California is a hub for US technology giants with many billionaires residing there. Zuckerberg's wealth has surged, yet his effective tax rate in California was less than 1% annually. Despite considering moving his primary residence, Zuckerberg now has a guaranteed income stream through stock splits created by Meta. The company plans to spend up to $145bn on AI projects this year, a significant investment despite negative cash flow.
The move aims to keep Zuckerberg leading Meta from California amid the rapidly evolving AI landscape.
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