Democrat Rep. Ro Khanna (CA-17) was at it again over the weekend, pushing for a wealth tax.
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
Democrats always sell things like this as though it’s going to help the working class. Khanna mentions healthcare in this clip. But I thought Obamacare was supposed to solve healthcare, so why does anyone need anything else? But, hey, believe them this time; the government is sure to do it this time.
Rather than help, such a tax would likely hurt the working class, with more people and businesses deciding not to invest in California, and thus having fewer jobs.
Then, too, Khanna has millions. If he truly believes in this approach, why doesn’t he put his money where his mouth is and pony up some of his own money?
Khanna got a lot of reaction to his post from people slamming his proposal. But perhaps the most interesting response was from businessman and billionaire investor Mark Cuban. Mark Cuban, while terming himself an independent, has been supportive of Democrats like Kamala Harris. But that didn't stop him from taking down Khanna and the Democrats' argument for the wealth tax.
Cuban explained there are "billionaires" who don't have the billions in liquid assets, but are billionaires on paper, who were "cash poor and stock rich."
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
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.
He explained that if the tax passed, if he were going to invest in a startup, he would ask them to move out of California first, that "if this passes, only idiot startup founders stay in Cali."
"I will make NOT being in California a prerequisite for an investment. Ideology is not a strategy, Ro," Cuban declared.
There you go, proving exactly the point. Why would anyone with any sense invest in California and put themselves in that position? They would end up saying bye-bye to a lot of jobs and innovation.
Khanna then proposed that such people could pledge shares in their companies as collateral to get a government loan, which could then be used to pay the tax.
Cuban laughed at that, "Ro, that’s insane."
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?
Khanna then pitched division.
"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," Khanna wrote. "Most say, I promise you, why only 5 percent?"
Cuban shot back: "You don't understand business Ro."
He also explained how this punished entrepreneurship by forcing the entrepreneurs to have to sell shares rather than growing their companies, creating jobs, and paying employees.
"Ro, this is the biggest f--- you in the history of entrepreneurship. Ever," Cuban said.
That's the Democratic position in a nutshell.
Never mind how the government just gets to grab more of their wealth because they want it. And can we note that when Michigan Senate candidate Abdul El-Sayed was asked about a wealth tax, he basically admitted it would apply to folks who weren't even millionaires.
READ MORE: Whoops: Abdul El-Sayed Slips Up, Makes Revealing Admission About Taxes, Healthcare
The Gift That Keeps on Giving: DSA Co-Chair's Remarks on Taxing Americans Do Not Go Well
If they think they can do this for the billionaires and/or the millionaires, when they run through that money and find out it isn't enough for the plans, they will come for the rest of us.
You already have California losing people. This will cost them even more if it passes.
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