Billionaire Mark Cuban Says If His Tax Fee Was Zero, He'd Construct a Firm 'So Stinking Worthwhile' Staff Would Get Paid Each Time He Did

If taxes disappeared tomorrow, would employees truly see more cash—or would firms simply preserve the distinction?

Billionaire entrepreneur and Price Plus Medication co-founder Mark Cuban says that query misses the larger level. In a 2019 GQ video the place he answered fan questions, Cuban centered on one thing else totally: who owns the corporate earlier than the cash ever reveals up.

The premise sounds truthful, however he says it is flawed

The query put to Cuban was easy. If his tax charge dropped to zero, would he give that more money to workers?

“I will inform you precisely what I might do,” he stated.

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“If taxes went to zero, and I do not suppose that is a good suggestion, but when taxes did go to zero, I might put money into the corporate to make it as large and worthwhile,” Cuban stated. “So stinking worthwhile, that as a result of the staff are homeowners, at any time when I acquired paid, they might receives a commission too.”

His reply shifts the main target. It’s not about handing out cash after income are made. It’s about structuring the enterprise so workers are already tied to these income.

Broadcast.com turned possession into actual cash

Cuban pointed to a deal he is aware of properly.

“Should you bear in mind what I stated about Broadcast.com, after we bought the corporate, out of 330 workers, 300 personal shares of inventory and have become millionaires,” he stated.

When Yahoo acquired Broadcast.com for $5.7 billion, about 91% of workers held fairness. That meant the payout reached far past management.

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Cuban has stated these workers didn’t simply see good points on paper. Together with inventory worth, he made certain payouts included actual money tied to the sale. On the time, giving that many workers possession was not frequent. It drew criticism. It additionally created tons of of millionaires.

It wasn’t only one firm, he says he did it each time

Cuban’s instance didn’t cease with Broadcast.com.

“In each enterprise I’ve bought, I’ve paid out bonuses to each worker that was there greater than a yr,” he wrote in a publish on X in 2024.

That expands the sample. The method was not tied to 1 second or one firm. Throughout a number of companies, he stated workers who stayed shared within the consequence when these firms had been bought.

It traces up with what he described within the GQ interview. Possession throughout the construct. Payouts when worth is realized.

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Why he says possession modifications all the pieces

Cuban drew a transparent line between incomes a paycheck and proudly owning a part of an organization.

“Whenever you receives a commission by the hour, certain, the extra you make, the higher issues are,” he stated. “However if you happen to personal inventory in an organization, then the higher that firm does, the higher you do.”

“The one solution to get out of that mode of getting paid by the hour or getting paid a wage, is that if the corporate grows as large because it probably can,” he stated in a GQ video.

For Cuban, progress is what unlocks that shift. A bigger, extra worthwhile firm creates the end result—both by means of money era or a sale—and workers with fairness are a part of it.

That’s the mannequin he retains coming again to. Not a one-time increase tied to taxes, however a system the place workers profit alongside the enterprise itself.

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