Cuban, Khanna debate proposed California wealth tax

Billionaire entrepreneur Mark Cuban and Representative Ro Khanna engaged in a public debate on social media this week over a proposed California wealth tax, with Cuban warning the measure could drive startup founders and investors out of the state. The exchange centered on Proposition 40, a ballot initiative that would impose a one-time 5% tax on the net worth of California residents with more than $1 billion in assets. The California Democratic Party and the state's labor movement have endorsed the measure, which has qualified for the November 2026 ballot.

In a post on August 15, 2026, Khanna, a Democrat from California, announced his support for the tax alongside Senator Bernie Sanders, arguing it would support working and middle-class Californians and demonstrating a party that "will stand up for the working class over the billionaire class." He has stated the revenue would help fund health care for low-income residents.

Cuban responded by questioning the practicality of collecting such a tax from founders of high-growth startups who are "cash poor, stock rich." He argued these individuals may become billionaires on paper after a funding round but lack the liquid assets to...