Zuckerberg wins Meta deal to help him foot bill for possible California billionaire tax
The Meta boss had said he would exit the state over a wealth tax that has not yet come into force.
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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