Rep. Ro Khanna proposes state loans to billionaires to cover wealth tax

In a recent social-media debate, Rep. Ro Khanna put forward a proposal for California to provide loans to billionaire entrepreneurs to satisfy the upcoming wealth-tax requirement, using the founders' equity as collateral and allowing the state to claim the shares if the loan is not repaid within roughly ten years. Mark Cuban responded that such a policy would likely drive founders and investors to relocate, undermining the state's tech ecosystem.

The article argues that the arrangement would shift risk to the state, which would bear the downside while gaining little immediate cash for health-care funding. Research cited suggests that wealthy Californians have already moved a sizable share of targeted wealth out of state, and the tax might generate far less revenue than projected. Critics also point out that current billionaire income-tax contributions could be lost if the tax prompts an exodus. The piece frames Khanna's suggestion as a departure from his prior pro-business stance toward a more progressive, socialist-leaning approach.