Mark Cuban warns Ro Khanna: Only ‘idiot’ startup founders will stay in California
Mark Cuban has raised serious concerns over the proposed billionaire tax in California, addressing Ro Khanna directly. He argues that this legislation could push startup founders, who often possess wealth in stocks but struggle with cash flow, to relocate outside the state. Cuban warns that if this trend continues, California's vibrant startup ecosystem and its edge in innovation could be…
American billionaire entrepreneur Mark Cuban has warned California Representative Ro Khanna that the proposed 5% billionaire tax, known as Proposition 40, would force startup founders to leave the state. Cuban argued that the tax would make it difficult or impossible for founders of "Deca Unicorns," startups valued at $10 billion or more, to liquidate their equity holdings to pay the tax without jeopardizing their companies' growth.
He claimed that many of these founders are "cash poor" and "stock rich," and that taxing their assets would force them to borrow against their shares or sell stock prematurely. Cuban threatened not to invest in California companies if the measure passes, advocating for investors to move their operations to other states like Dallas, Pittsburgh, and Indiana.
He emphasized that "ideology is not a strategy" and warned that the tax could jeopardize California's startup ecosystem.
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