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Mark Cuban criticizes California wealth tax plan ahead of November vote
The proposal would take 5% of assets held by the state's richest residents to fund healthcare, schools, and food assistance.
Mark Cuban sharply criticized California’s proposed “wealth tax” on billionaires as the state heads toward a November 3 vote on multiple measures, including Proposition 40.
According to Yahoo Finance, the measure would levy a 5% cut of all assets owned by California’s richest residents, with proceeds earmarked for healthcare, schools, and food assistance. Supporters, including Democratic Representative Ro Khanna, have framed the plan as standing up for working people against a billionaire class amid the cost of living crisis.
Cuban, writing on X, argued that many early-stage “10b” startups involve founders who can become billionaires on paper quickly, while remaining short on cash. He questioned how such founders would pay a tax and suggested they might need to borrow against shares, which he said may be difficult in the context of very new companies.
Yahoo Finance reports Cuban predicted that if the tax passes, only “idiot” startup founders would stay in California, and noted his post drew large engagement at the time of publication.