Mark Cuban warns California billionaire tax could drive startups out of state

During a public exchange, Mark Cuban rebuked Democratic Congressman Ro Khanna for backing Prop 40, a ballot initiative that would levy a one-time 5% levy on California billionaires. Cuban argued that the tax targets founders who are “cash poor, stock rich,” making it difficult for them to pay the levy. He praised the state’s growing number of unicorn startups fueled by Silicon Valley’s AI boom, but warned that the tax could force businesses and investors, including himself, to move elsewhere.

Cuban said he would make relocation a condition for investing in multi-billion-dollar startups. A recent poll shows the measure split, with 48% in favor, 41% opposed, and 11% undecided, while wealthy donors such as Sergey Brin have funded competing initiatives. The debate has split Democrats, with labor groups supporting the tax to offset federal health cuts and Governor Newsom warning of economic damage.