Cuban said many startup founders are worth billions on paper because of their company shares, but do not actually have that money sitting in cash. A wealth tax could force them to sell shares or borrow money just to pay the bill.
He went even further, saying that if he is considering investing in a multi-billion-dollar startup, he could make leaving California a requirement before putting in his money.
Cuban argued that the tax could push founders, investors and fast-growing companies to move to other states, taking jobs and future business growth with them.
The proposal would target about 250 California billionaires. Supporters say the money could help fund health care and other state programs, while critics including Cuban warn it could drive some of California’s biggest business opportunities away.