Mark Cuban’s Arguments Against The Proposed 5% CA Wealth Tax
Cuban said the proposal could force founders to sell illiquid stakes and may reduce revenue, while Khanna said 72% of targeted wealth is publicly traded stock.
- On Monday, August 17, 2026, billionaire investor Mark Cuban and Representative Ro Khanna debated California's Proposition 40, a proposed 5% wealth tax on billionaires, during a CNBC segment hosted by Andrew Ross Sorkin. The clash revealed fundamental disagreements over asset liquidity and capital flight risks.
- Proposed by the Service Employees International Union-United Healthcare Workers West, Proposition 40 aims to address California's projected multibillion-dollar budget deficit with a one-time 5% tax on net wealth exceeding $1 billion. The measure directs 90% of revenue to state healthcare programs.
- Arguing that founders are 'cash poor, stock rich,' Cuban challenged the tax's feasibility, questioning how founders could access funds to pay without a market to sell into. Khanna countered by suggesting the state provide non-recourse loans, enabling founders to borrow against company ownership to settle the levy.
- Opponents, including Google co-founder Sergey Brin, have donated more than $100 million to defeat the measure, fearing it will drive startups and investment from California. Cuban warned he would steer new companies away if voters approve the tax.
- Voters will decide the proposal's fate this November alongside rival Propositions 41 and 42, designed to nullify it if they receive more votes. California's technology and professional services sector represents 21.7% of state GDP, making the outcome consequential for the broader economy.
26 Articles
26 Articles
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California Democrats have not even successfully passed their wealth tax ballot proposition, and they are already admitting it will fail to work as advertised. That is just one of the takeaways from a revealing social media exchange between wealth tax backer Rep. Ro Khanna (D-CA) and billionaire entrepreneur Mark Cuban. Responding to a video posted by Khanna celebrating the California Democratic Party’s official endorsement of Proposition 40, a b…
Mark Cuban DESTROYS Dems’ insane tax plan – The Horn News
Billionaire Mark Cuban knows a thing or two about business and finance — and he’s also not afraid to call out a foolish idea when he sees one. So when ultra-left Congressman and publicity hound Ro Khanna recently pitched a 5% wealth tax on California billionaires, Cuban was ready to rumble. Khanna, of course, is reportedly worth up to $300 million himself — and, you’ll notice, the proposed tax does not affect people worth $300 million. Beyond th…
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The business mogul fired shots at the Democratic economic patriot over concerns of taxing young startup companies out of California.
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