Mark Cuban checks Ro Khanna on California – Business News
Far-left progressives try to rally up assist for California’s controversial one-time 5% tax on billionaires that’s up on the November poll — however famed businessman Mark Cuban on Saturday delivered a brutal evaluation to 1 of the tax’s largest supporters.
Cuban, himself a billionaire, chastised Democratic Congressman Ro Khanna for supporting the tax: “Ideology is not a strategy.”
U.S. Rep. Ro Khanna (D-CA) Lenin Nolly/NurPhoto/Shutterstock
Khanna, a potential 2028 White House contender, was celebrating on X that the California Democratic Party endorsed Proposition 40 in defiance of more mainstream Dems corresponding to Gov. Gavin Newsom.
“California voters want a Democratic Party that will stand up for the working class over the billionaire class,” the congressman proclaimed.
But Cuban mentioned Khanna was not assessing the scenario precisely.
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“Ro, I like you. You know that. But you need to read the state of the state,” he tweeted at Khanna.
Cuban lauded the quantity of “unicorn” startups within the state, powered by Silicon Valley, that appears to be growing day-after-day. Those startups typically can can raise billions of {dollars} as traders chase after the AI frenzy, which means founders can turn out to be billionaires in a single day — after which discover themselves taxed.
Businessman Mark Cuban speaks on the 2025 Forbes Healthcare Summit at Murphy Alumni Hall – NYU Langone Health in New York City on Thursday, Dec. 4, 2025. John Angelillo/UPI/Shutterstock
“They are the definition of cash poor, stock rich,” Cuban defined, including it will be tough to tax people in that scenario.
“Do you really think each of multiple founders, who started an amazing company in Cali and is now a billionaire, can each just pull out $250m per billion of net worth from their raise? You know they can’t.”
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Healthcare staff and different supporters with the Billionaire Tax Now coalition maintain placards during a media briefing in Los Angeles on Monday, April 27, 2026. The initiative would levy a one-time 5% tax on California billionaires. (AFP) AFP through Getty Images
If Prop 40 passes, Cuban claimed companies and traders, together with himself, would positively search to keep away from California; actually, he mentioned he would make it a requirement to not be primarily based in California.
“You can bet if I’m investing in a multi- billion dollar startup, I’m asking them to move from California first,” he mentioned. “If this passes, only idiot startup founders stay in Cali.”
Ro, I such as you. You know that. But you need to learn the state of the state. The quantity of Deca Unicorns in Cali is growing by the day as traders chase superb startups. A novel function of these 10b startups is that even when they raise a billion, little, if any of that… https://t.co/l1LRaiki16— Mark Cuban (@mcuban) August 15, 2026
The congressman nonetheless appeared to not be satisfied, replying to Cuban with a query on one other potential option to tax billionaire startup founders even when their internet price isn’t in money.
Californians are at the moment divided over Prop 40, in response to a latest ballot, which confirmed 48% assist in comparison with 41% who opposed. About 11% are undecided.
It’s particularly important for Prop 40 to garner as many “yes” votes it might probably as billionaires like Sergey Brin have poured money into competing poll initiatives which will override it. Typically, the initiative that will get essentially the most votes is the one which goes into impact.
The proposed tax has cut up Democrats, with many labor teams backing it as a option to offset federal health cuts however distinguished figures like Newsom worrying it should destroy the state’s economic system.
