Overview
- The public back-and-forth between investor Mark Cuban and Rep. Ro Khanna unfolded on social media in mid‑August and shifted the debate toward how illiquid founders would actually pay the tax.
- Cuban argued that many startup founders are ‘stock rich, cash poor’ and warned he would make leaving California a condition of future investments for companies that face the levy.
- Khanna proposed a state loan program secured by founders’ shares so they could pay the tax, a plan critics say could leave California owning private company equity if loans default.
- Analysts and the Legislative Analyst’s Office say revenue estimates are uncertain and cite research showing state wealth levies can prompt some billionaires to leave, which could erode long‑term tax receipts.
- The dispute has intensified campaign activity and legal questions, with wealthy opponents funding rival measures and the November 3 ballot date remaining the next major milestone.