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Khanna Wins Labor Endorsement for 5% Wealth Tax

8/17/2026

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Summary

Story summary

Rep. Ro Khanna announced the California Democratic Party and labor movement endorsed a 5% wealth tax on 250 California billionaires.
Rep. Ro Khanna said tax would preserve health care for millions of Californians.
Mark Cuban warned 5% wealth tax could drive billion-dollar startups out of California.
Mark Cuban said he would require non-residency for investing in multi-billion-dollar startups.

History

Historical Context

In October 1913 President Woodrow Wilson signed the Revenue Act, the first federal income tax after the Sixteenth Amendment, imposing 1% on incomes above $3,000 and a 7% top rate on earnings over $500,000, which taxed about three percent of Americans. Today Rep. Ro Khanna and the California Democratic Party cite that shift while proposing a 5% wealth tax on billionaires, a move opposed by Mark Cuban.

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Story summary

Rep. Ro Khanna announced the California Democratic Party and labor movement endorsed a 5% wealth tax on 250 California billionaires.
Rep. Ro Khanna said tax would preserve health care for millions of Californians.
Mark Cuban warned 5% wealth tax could drive billion-dollar startups out of California.
Mark Cuban said he would require non-residency for investing in multi-billion-dollar startups.

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