Mark Cuban and Bill Ackman criticized a proposal from Rep. Ro Khanna (D-Calif.) that would allow illiquid startup founders to pledge their shares to the government in exchange for a loan to pay tax liabilities. Under Khanna's outline, the loan period would be long but not infinite, with an example of 10 years, and founders would either repay in cash or the government would assume the shares. Cuban called the idea "insane," arguing the state would lend money to a founder only to have it immediately returned as a wealth tax, producing no incremental receipts. He said the structure could ultimately leave the government owning equity and potentially holding board seats in startups that cannot repay, adding that "Ideology is not a strategy." Ackman argued failed founders could face another tax problem if debt forgiveness becomes taxable as ordinary income. He said a collapsed startup could leave a founder with no company, no equity and no cash, yet still facing taxes on debt forgiveness income, which he said could mean insolvency and lifelong wage garnishment. The dispute sits within a broader debate over Khanna-backed wealth tax proposals. Cuban had already warned that a proposed one-time 5% tax on roughly 250 California billionaires could push founders out of the state because many are "cash poor, stock rich" after their companies reach billion-dollar valuations. The November ballot measure is backed by Khanna, Sen. Bernie Sanders (I-Vt.) and California's Democratic Party, while Gov. Gavin Newsom has opposed it in favor of a federal approach.