California has Prop 40 on the November ballot. One-time 5% tax on anyone worth over $1 billion who lived in the state Jan 1 2026.
Ro Khanna is one of the loudest supporters. Says it raises about $100 billion for healthcare.
Most of these fortunes are paper wealth in company stock. Not cash. Selling big chunks means losing control.
In a public fight with Mark Cuban last weekend Khanna floated the fix. State gives a long-term loan (around 10 years). Founder pledges shares as collateral.
Pay it back in cash later or the state takes the shares.
Post uses Jensen Huang Nvidia CEO as example. Roughly $9 billion tax bill. 10-year loan could mean over $12 billion total with interest.
Cuban said the state lends money just so the founder hands it straight back. No real new cash. And if the company grows the state still ends up owning part of it.
Tech founders already threatening to leave or stop investing in California startups.
California Democrat Congressman Ro Khanna is proposing loans to California billionaires to pay a proposed 5% wealth tax
Because most of these billionaire have all their money in stocks, not cash sitting in a bank account, Democrat Ro Khanna wants them to take out loans from… pic.twitter.com/3LiT5x4lzT
— Wall Street Apes (@WallStreetApes) August 21, 2026
So California wants to loan billionaires the money to pay California… Then charge them interest on it. Peak fiscal innovation turn a tax into a high-interest payday loan and call it progressive.