As Twitchy readers know, Mark Cuban and Ro Khanna have had some 'tiffs' in the past about money, taxes, capitalism, etc.. Basically, the billionaire knows more about capitalism, taxes, and making money than the communist.
Crazy, we know.
Speaking of crazy, this wealth tax in California that Bernie Sanders supports from Khanna is a disaster.
It all started here:
The California Democratic Party and the California labor movement just stood with @BernieSanders and me in supporting 5% wealth tax on 250 California billionaires.
— Ro Khanna (@RoKhanna) August 15, 2026
California voters want a Democratic Party that will stand up for the working class over the billionaire class. pic.twitter.com/QrLZUh3bS6
Cuban jumped in here:
Ro, I like you. You know that. But you need to read the state of the state.
— Mark Cuban (@mcuban) August 15, 2026
The number of Deca Unicorns in Cali is growing by the day as investors chase amazing startups.
A unique feature of these 10b startups is that even if they raise a billion, little, if any of that… https://t.co/l1LRaiki16
Post continues:
... money goes to the founders, who are now worth billions of dollars overnight. They are the definition of cash poor, stock rich
How are you going to tax them? Make them borrow money against their shares, if they can? They just raised money to grow their company and a bank will come along and loan them money? A company that has been in business maybe less than a year? lol
Will you take their stock if they can’t?
Do you really think each of multiple founders, who started an amazing company in Cali and is now a billionaire, can each just pull out $250m per billion of net worth from their raise ? You know they can’t.
If this passes, and it doesn’t directly impact me at all, I won’t be a Cali resident, but you can bet if I’m investing in a multi-billion-dollar startup, I’m asking them to move from California first. IMO, if this passes, only idiot startup founders stay in Cali. I’ve done it before and will do it again. Dallas. Pittsburgh. Indiana.
I will make NOT being in California a prerequisite for an investment.
Ideology is not a strategy, Ro.
Recommended
Ro fired back:
Why not a non recourse loan for pledged stock as collateral for this situation?
— Ro Khanna (@RoKhanna) August 15, 2026
Hooboy.
Ro continued:
Allow illiquid founders to pledge shares with a loan from the government to pay tax. The loan period is long but not infinite (e.g. 10 years). The loan is non-resource: at the end of the period, the loan is either paid back in cash, or the government assumes the shares.
— Ro Khanna (@RoKhanna) August 15, 2026
Cuban responded:
Ro, that’s insane.
— Mark Cuban (@mcuban) August 16, 2026
You want the state to loan money to the founder, who will then immediately give it back to the state as a wealth tax ?
Meaning the state has not received any incremental receipts? What’s the point of that ?
Unless of course you want the gov to own shares… https://t.co/wJGaCvVfhE
Post continues:
... (something I thought you criticized) and possibly have control, of companies who underperformed, (or the funding market changed), and couldn’t pay back their loans over those 10 years ? And I’m sure the investors in those companies will be thrilled about their new partners. That will make for interesting board meetings.
“Today’s first topic is trying to figure out how to motivate the founder(s).
They just lost $250m of their shares in the company they founded to the state of California. Anyone got any ideas? “
But at least it’s amazing for the state’s brand. “Cali, you make it. We take it !” Come on, Ro. Ideology is not a strategy.
Ro responded:
The government would still collect from the vast majority of billionaires who are not illiquid. 72 percent of their wealth is in public stock. We are talking here about true paper billionaires with illiquid assets. And in those cases, the government would make out if the company…
— Ro Khanna (@RoKhanna) August 16, 2026
Post continues:
... the company succeeds in terms of collection but founders would not be personally liable if the company somehow failed. Mark, come on a road trip with me around California, Pennsylvania and the country and ask ordinary Americans how they feel about a billionaire tax. Most say, I promise you, why only 5 percent?
There used to be a time when everyone deeply admired business leaders. We always had our suspicions about politicians. But business leaders were different. Andy Grove, Lee Iacocca, Warren Buffett. I know people respect you, especially on Shark Tank! But doesn't it concern you that today's business leaders do not have the same esteem today. Why is that? It's because many Americans feel the system is not working for them, that the success of a few is not tied to their success.
What I am trying to do is offer a new social contract for this country. I am a progressive capitalist --I want a future economy that works for everyone, not just the capital class in a few places. I want thoughtful business leaders like you to help me build that country.
That's what FDR did with recruiting Bill Knudson from GM, railing against economic royalists, and then getting business leaders to industrialize America and build the greatest middle class!
What?
Cuban started to lose his patience here:
You don’t understand business Ro.
— Mark Cuban (@mcuban) August 16, 2026
It doesn’t have to fail. Those entrepreneurs can bust their asses for the next 10 yrs. Create THOUSANDS OF JOBS, pay more than 250m taxes to the Feds and state over those 10 yrs.
BUT, never have 250m they can take out of the company.… https://t.co/nioLAckHTD
Post continues:
... BECAUSE THEY ARE GROWING. Making them unable to pay back California their loan. Is that what you want your state to be ?Next tweet we can discuss who the money is going to with Prop 40.
More from Cuban:
When you talk to voters in Cali, and you discuss Prop 40, do you tell each voter how they will benefit ?
— Mark Cuban (@mcuban) August 16, 2026
The state estimates that it could generate 100b, which will be paid over the 5 yr term, or 20b a year. Give or take.
The state lost about 30b In federal Medicaid… https://t.co/nioLAckHTD
Post continues:
... funding? Which means, even if you took 100pct of the Prop 40 funds each year , to subsidize the loss funding, it doesn’t cover it. The good news is that a few million people who lost coverage, could get it back. And people working at providers that accept medi-cal could keep their jobs. That’s great, but it also means that only a few million Californians will benefit. Great.
The rest get no benefit. None at all. Zero. Anyone you talked to that didn’t lose Medicaid won’t get sh*t.
Affordability? Nope. Lower healthcare costs ? Nope. Lower gas prices
Nope. Lower home insurance. Nope. Wildfire protections. Nope. Here is the math as I see it, and feel free to correct me. Right now cali collects 13.3 pct on ANY income above 1m a year. You also collect 8.8 pct on cali corporate earnings. Which would rather have 13.3 pct and 8.8 pct that people have been paying.
Annually. Or a one time 5 pct tax, which probably equates to about 20b a year , plus some unknown number of wealthy people leaving and taking their companies and jobs with them. It’s a math problem. Not an easy one. Now if you went to those same voters and told them you are going to cut their healthcare, food, housing, home/renters insurance , and more, which do you think they would prefer?A billionaire tax or lower costs at home ?
But that would require actually doing things outside your comfort zone.
Ro came back again:
Mark, most of the 250 billionaires in California DO NOT have this liquidity issue.
— Ro Khanna (@RoKhanna) August 16, 2026
They have public stock.
In your scenario, the founder could sell to pay a one time 5 percent tax or the state could sell it if he defaults on the loan.
Ask Jensen, Lisa Su, Sundar if they plan to…
Post continues:
... leave California if this ballot initiative passes.
Btw 85 percent of the nation's VC money came in Q1 2026 to California.I love your passion. I respect your intellect and ability to get things done. Why not put this energy into figuring out how we bring capital and high-paying jobs to every community in America? Why not put it towards figuring out the policy that expands childcare or healthcare (as you are working on reducing drug pricing)? Of all the things in America, aren't those more pressing issues than a one-time 5 percent tax on 250 billionaires to pay for healthcare for poor kids and families in California?
Wow, this guy is dumb, even for a commie. And oh yeah, he's also super wealthy but that's another article.
Cuban finally had it:
Ro, “in your scenario, the founder could sell to pay a one time 5 percent tax or the state could sell it if he defaults on the loan”
— Mark Cuban (@mcuban) August 16, 2026
Ro, this is the biggest fuck you in the history of entrepreneurship. Ever.
Creating jobs but don’t have cash. Fuck you
Can’t sell shares,… https://t.co/IYhoXVTSty
Post continues:
... we will sell it for you, to whoever. F**k you.
Creating jobs. Paying great wages instead of taking cash out yourself. F**k you
Reinvesting into your company and community. F**k You.
Don’t you know that Jensen, and Lisa Su, and people who have vast amounts of liquidity already have no problem with it. F**k You
There is a huge difference between someone with liquidity , running a huge public company, and someone who has dedicated every minute of who knows how many years, to building a company, to finally have a dream financing come true , only to be insulted by a politician.
“We will sell your shares for you “
GTFO
What he said, EH OH EL.
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