Californians will vote on November 3 on a one-time 5% wealth tax for billionaires, a measure that has already prompted several wealthy individuals to leave the state, taking about $540 billion with them. Mark Zuckerberg owns roughly 13% of Meta’s value but controls 61% of its votes through Class B shares, each carrying ten votes. To pay the potential tax, he would have to sell Class B shares, which would convert into one-vote Class A shares and reduce his control of Meta. Meta therefore created a non-voting Class C stock: Zuckerberg can immediately sell 20% of the new shares, equal to 10% of his overall economic stake, without losing his voting majority, and has committed to remain in California or wherever Meta is headquartered for eight years. The stated purpose also includes financing Meta’s artificial intelligence spending, as the company expects to need to raise hundreds of billions of dollars beginning as early as fall 2026.
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