‘Only idiot startup founders stay in Cali’: Mark Cuban rips billionaire tax—and opens a rift inside the Democratic Party

Texas native Mark Cuban has spoken out against a proposed wealth tax in California, sparking a feud with Democratic Rep. Ro Khanna. The billionaire entrepreneur, known for his libertarian views, believes the measure would drive away tech founders and investors from the state. Khanna, backed by the California Democratic Party and California Labor Movement, promotes the initiative as a means to fund healthcare and other public programs for low- and middle-income Californians.

Cuban warns that the tax, which would affect billionaires with unrealized gains, could force founders to leave California, citing the nature of startup wealth that often lacks liquid assets. Khanna counters that the tax would impact only a small portion of billionaires, suggesting a loan option for founders to pay the tax. Cuban dismisses this proposal, stating it would be absurd for the government to lend money to founders who would repay it back.

The proposed ballot measure, Proposition 40, aims to generate tens of billions of dollars for healthcare and other initiatives, but its passage has already prompted billionaire residents to threaten to relocate.