Progressive Democrat Ro Khanna lashed out at opponents of California’s proposed wealth tax after Meta Platforms Inc. revealed stunning details of how Chief Executive Officer Mark Zuckerberg negotiated a deal to fund his potential payment of the levy and stay in the state if the measure passes.
“Looks like billionaires will stay and figure out a way to pay the tax,” Khanna said on X. “Gavin, can you and Sergey Brin stop with your fear-mongering of a billionaire exodus?”
Khanna, a congressman who represents Silicon Valley, was referring to California Governor Gavin Newsom, a Democrat who opposes the tax, and Google co-founder Brin, one of the world’s richest people. Brin has taken steps to leave California and is bankrolling a campaign against Proposition 40, a proposed one-time 5% tax on the wealth of the state’s billionaires that’s on the November ballot. Polls show voters are divided on the measure.
Representatives of Newsom and Brin didn’t immediately respond to requests for comment.
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The prospect of wealthy residents leaving California has become a central argument against taxing the state’s billionaires. Supporters of the levy are now seizing on Zuckerberg’s agreement to stay in the state as evidence to the contrary.
Zuckerberg considered exiting California after Proposition 40 qualified for the ballot. The Meta co-founder, whose net worth is currently valued at $230 billion by the Bloomberg Billionaires Index, could face a multibillion-dollar bill if the measure takes effect.
Meta subsequently approved the creation of a new class of nonvoting stock that would allow Zuckerberg to raise cash without giving up voting control of the company. He committed to reside in California – or wherever Meta keeps its headquarters – for eight years.
“This is the nail in the coffin of the lies about potential billionaire flight,” Suzanne Jimenez, a spokesperson for the campaign supporting the tax, said in a statement. Zuckerberg’s commitment to remain in California, she said, shows “the billionaire exodus scare story is falling apart.”
In an interview, Khanna also called Zuckerberg’s agreement “tone deaf” and cited the example of Nvidia Corp. CEO Jensen Huang, who has said he is “perfectly fine” with paying the proposed levy.
“People who are worth billions of dollars, whose wealth has gone up 144% in the last three years should have the attitude that Jensen does, which is we’re going to pay the tax,” said Khanna.