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As long as the stock market exists, so will billionaires, and attempts to eliminate them would trigger an economic disaster for ordinary Americans.
At least that’s the belief of billionaire entrepreneur Mark Cuban, who made his $6 billion fortune from technology and the Dallas Mavericks, according to posts on BlueSky.
“Billionaires will exist as long as the stock market exists,” the former “Shark Tank” investor posted.
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Extreme wealth is the byproduct of the market system, Cuban posted, noting that taxing or capping the wealth of the ultra-rich would force the top 10% to sell their stock holdings, which would “wipe out the savings of more than half the country.”
But, he argued, the massive concentration of capital is the structural foundation that supports the entire market.
Liquidating those assets would cause the value of everyone else’s savings to collapse — not just the wealthy, he said.
As he defended billionaires, Cuban detailed what he believes would make capitalism fairer: focusing on increasing opportunity rather than capping wealth.
Instead of capping CEO salaries or enforcing higher wages, Cuban proposed a system where all employees have a direct stake in their company’s success.
“I think every employee should be the same percent of their earnings in company stock as the CEO,” he said.
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Though Cuban opposes taxes based on stock valuations, he makes an exception for a “windfall tax,” he posted on BlueSky.
Cuban said he is not opposed to a tax on people who realize $1 billion or more in taxable cash income in a single year.
Cuban questioned the basic fairness and feasibility of taxing unrealized stock wealth, asking a question that exposes the volatility of the stock market: “If it’s the value of their stock, will you refund the tax if the stock market corrects or crashes?”
When a commenter suggested that public outrage stems from billionaires’ selfish actions, Cuban responded with three checkmarks.
“I’m more concerned that no one is trying to figure out how to help everyone else make more,” he wrote.
